Benefits of investing in the Spire USA ROC Office Fund I (AUD)

The Investment Manager's investment approach in the Bridge Office Program combines a disciplined asset selection process with a focus on operationally-oriented, value-added improvements that increase tenant satisfaction and solve vacancy issues. These improvements are designed to drive growth in Net Operating Income (NOI) and value. This value-add approach is core to the Bridge DNA.

Investor suitability

Long-term investors seeking a total return strategy via exposure to private equity real estate strategies undertaken in the US.

About the Fund

The Fund will invest as a single Limited Partner in a US private equity real estate investment program implemented by the Investment Manager, Bridge Investment Group LLC, a specialist real estate manager with in excess of US$10 billion AUM and over 1,000 employees nationwide. The Bridge Office Program which will acquire value-add commercial office buildings in high growth markets within the United States.

Investment in value-add commercial office properties has been an integral part of the investments within the highly successful ROC' fund series, which began in 2009. ROC is an acronym for Real estate Opportunity Capital, and reflects the private equity real estate fund thesis of having committed capital available to take advantage of opportunities in the market.

How we invest your money

The Fund Manager seeks to achieve the Fund's investment objective by making Capital Commitments to the Underlying Fund. The Fund Manager will recommend to the Responsible Entity that a Capital Commitment be made to the Underlying Fund at each Close Date, during the Fund's Offer Period. Capital Commitments are in US Dollars. The level of initial or additional Capital Commitment(s) made by the Fund to the Underlying Fund at each Close Date will be dictated by the capital that has been raised and converted to US Dollars by the Fund at that date.

Between 4 and 6 different Close Dates are expected to apply to the Underlying Fund during the time that it remains open for investment. This timeframe will be dictated by the time that it takes the Underlying Fund to achieve its capital raising objectives, but cannot exceed 18 months after the Underlying Fund's First Close date.

Below is a partial summary of the investment characteristics that the Investment Manager will target. These are generally assets:

• with attractive valuations, acquired below current replacement cost (for example the previous 37 office assets acquired by funds managed by the Investment Manager were bought at an average of 53% below replacement cost - as estimated by the Investment Manager);

• with excellent fundamentals, providing opportunities to "add value since they will typically feature at least two of the following: (1) deferred maintenance or physical obsolescence, (2) operational inefficiencies, (3) inappropriate capitalisation structures, and/or (4) ineffective market positioning;

• located in submarkets offering above-average job and demand growth and below-average supply growth, with prospects to achieve: (1) higher local occupancy rates

• and rents, (2) positive cash flow immediately or soon after completing appropriate capital improvements or new financing structures, and (3) below-market in-place rents that can be rolled up to market, increasing net operating income; and

• offering the opportunity to invest between $5 million and $50 million of equity, a size considered by the Investment Manager to be the middle market "sweet spot where competition from both large, national "financial buyers and from more local "ad-hoc buyers is reduced.

To evaluate and acquire targeted assets, the Investment Manager will: (1) thoroughly analyse, (2) directly and actively oversee, finance, construct, rehabilitate, lease, manage, improve and sell each portfolio investment in a way that unlocks or maximises its value to provide above-average returns for investors (i.e., "creates alpha), and (3) prudently utilise lines of credit to help drive cash flow and returns.