Dear Investors,

It is my pleasure to welcome you to New Zealand Real Estate Investment Trust (the "Fund” or "NZREIT”) our commercial property fund which was established in 2016 with focus on childcare properties.

Managed by Uwin Capital Limited, the Fund was established to enable the founders and likeminded investors to pool their funds and invest side by side in Childcare properties with suitable returns.

NZREIT currently offers two sub-divisions, Unit Class A and Unit Class B. Unit Class A holds a portfolio of fully developed and leased childcare properties to meet the needs of investors who wish to receive regular dividends from net rental income while enjoying the prospect of capital gains reflected in the unit price. Unit Class B is for those investors who are interested in participating in the development margin from building childcare properties.

Since the establishment of Unit Class A on 1 October, 2019, the Fund has consistently paid quarterly dividends achieving an average 6% pre-tax cash return per annum, despite experiencing three pandemic lockdowns in Auckland in the last two years. Our dividend record in this difficult period of time reflects the underlying quality of our childcare properties and compares favourably with bank term deposit rates of less than 1 % per annum over this period.

Our aim is simple – to grow a portfolio of childcare properties that have a diversified group of premium tenants and with growth potential. We will focus initially on Auckland, then other strong growth regions throughout New Zealand where there is growing demand for our modern and purpose-built childcare properties.

Childcare property has proven over time to continue to perform even in difficult economic times with steady growth in childcare demand and supported by government operational funding. Childcare property has maintained attractive returns and market growth during the Covid-19 pandemic.

Since 1 October 2019, Unit Class A has acquired two properties. The first acquisition, 5 William Pickering Drive, is a commercial building located in the light industrial area of Rosedale, Auckland. With a 98 license childcare center on a long term 35 year lease and four other steady tenants, including Uwin

Capital Limited. The second acquisition, 4019 Great North Road, is a newly built 120 license childcare center, located on the busy major arterial road in Kelston, also with long term 35 year lease. Both properties were developed by the fund.

This new capital raising is to acquire another new purpose built 125 license (final number subject to the approval of Ministry of Education) childcare property. Located at 199-203 Beach Haven Road, it is in the heart of Beach Haven community in North Shore, Auckland next to the existing Beach Haven local shops. This property was developed by Uwin Capital No. 1 Limited Partnership, with Unit Class B as the anchor limited partner. The biggest childcare operator in New Zealand, Best Start, is the tenant and this property is expected to be handed over to the tenant in early February 2022.

All these properties meet our location, tenant, yield, and potential growth criteria.

NZREIT is an open-ended fund. As such, our intention is to continue to add to our portfolio of childcare properties, thereby diversifying investment risk across multiple properties and tenants. We believe that this is a conservative investment structure enabling us to better manage the requirements of our tenants and provide our unit holders with superior security.

Our strategy is to provide the closest alternative to direct property ownership as possible, targeting regular quarterly distributions and the potential for capital growth. Being a PIE fund, Unit Class A investors receive the same income, tax deductions and capital gains as if they owned the properties direct, including depreciation deductions which reduces your tax.

NZREIT intends to grow by acquiring further childcare properties. The founders, alongside other existing investors, will be offered the first opportunity to reinvest on a pari passu basis.

We welcome your interest and the opportunity to work with you.

Peter Jiang
Director
Uwin Capital Limited.