Management Fees

The Managers receives a flat fee of:

• 0.75% per annum of the value of Direct Property's portfolio up to $250 million; and
• 0.55% per annum of Direct Property's portfolio from $250 million to $500 million; and
• 0.45% per annum of the additional value of Direct Property's portfolio in excess of $500 million; paid monthly.

This is the only fee paid by Direct Property to the Manager.

The following actual costs are expected to be the only additional costs to be met by Direct Property:

• Property costs;
• Company advisor costs e.g. legal and valuation;
• Director's fees;
• Audit fees;
• Due Diligence;
• Shareholder communication and registrar costs;
• Insurance;
• Funding costs including interest and bank fees.