Establishment of SCA Property Group

39 Summary of Financial Assumptions (cont.) - Appendix A Forecast assumptions have been done on a property by property basis where appropriate and are consistent with independent valuation reports. Full details of the assumptions are included in PDS section 7.4 Minimum Rental Guarantee Interest Expense Tax Expense • • • • The forecasts assume income will be received for vacant leases and rental incentives payable in accordance with the Rental Guarantee provided by Woolworths The level of Rental Guarantee assumed to be received reflects the assumptions adopted in respect of tenant retention rates, let ups and lease incentives The net present value of the cash flows expected to be received under the Rental Guarantee have been capitalised on SCA Property Group's balance sheet at the Allotment Date and are offset against the gross income over the period in which they are forecast to be received Development Portfolio - - Until payment of the development price, Woolworths is required to use best endeavours to lease specialty tenancies in accordance with agreed leasing criteria After the development price is paid, SCA Property Group will assume responsibility for leasing any vacant tenancies Woolworths guarantees the total amount of gross rent from specialty tenancies for a period of two years after payment of the development price Woolworths is responsible for incentives payable in respect of specialty tenancies If any specialty tenancy in the Australian Development Portfolio remains unlet at the end of the guarantee period, Woolworths must pay to SCA Property Group an amount equal to six months' rent for each unlet tenancy to compensate for incentives which it may subsequently have to provide to procure a tenant of the vacant premises Weighted average all-in debt costs of 5.7% inclusive of margin and hedging arrangements Debt facilities assumed to be hedged to 90% at a blended fixed interest rate of 3.5% Establishment costs of $2 million capitalised against debt balance at Allotment to be amortised over the term of the debt SCA Property Group's New Zealand entities are subject to New Zealand tax on their earnings

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