Fund Overview

APN European Retail Property Group (the Group) is a listed property trust (ASX code AEZ) which operates under a stapled security structure. The Group is invested in a portfolio of 34 retail properties as at June 2008 located in seven countries across Europe. The Group is managed by APN Funds Management Limited (APN FM).

Investment Objectives

APN FM has a clear and focused objective of growing unit holder value, through investment in European retail properties which offer secure income streams and have the potential for capital growth.

Following the stapling of AEZ, the Group may also undertake a range of additional activities including:

• Property development and refurbishment
• Property and asset management
• Commercialisation
• Creating retail property syndicates.

Investment Strategy

The Group’s strategy is to invest in a diversified portfolio of retail properties throughout Europe. Additional acquisitions for the Group will be assessed by APN FM according to established investment criteria, including the following:

• properties located through out Europe
• retail properties, from supermarkets to leisure and regional shopping centres
• properties generally in strong demographic regions with high occupancy levels
• acquisitions expected to add value to the Groups’s long term earnings or asset allocation or a combination of both.