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Financial Statements

Year Ended 30 June 2015

BlackWall Penrith Fund No.3

ARSN 165 156 945

BLACKWALL PENRITH FUND No.3 - Financial Statements For The Year Ended 30 June 20152

BlackWall Penrith Fund No.3ARSN 165 156 945

BlackWallPenrithFundNo.3ARSN165156945

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CONTENTSFinancialStatementsDirectors’Report Page3 Auditor’sIndependenceDeclaration Page7StatementofProfitorLossandOtherComprehensiveIncome Page8StatementofFinancialPosition Page9StatementofChangesinNetAssetsAttributabletoUnitholders Page10StatementofCashFlows Page11NotestotheFinancialStatements Page12Directors’Declaration Page19IndependentAuditor’sReport Page20Contents–NotestotheFinancialStatements Page23Glossary Page24

3BLACKWALL PENRITH FUND No.3 - Financial Statements For The Year Ended 30 June 2015



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Directors’Report BlackWall Penrith Fund No. 3 is a registered managed investment scheme. BlackWall Fund ServicesLimitedactsastheResponsibleEntity.TheFundisapropertyinvestmenttrustwithaninterestina‘big‐box’retailpropertylocatedonMulgoaRoad,Penrith.AstheFund’snamesuggeststhisisthethirdinvestmentsyndicatestructuredwithrespectto the Property (the first commenced in 2002). Since that time the Property has generated investordistributionsofnot less than8.75%perannum.Thesedistributionshavebeenpaidquarterlyandhaveneverbeenpostponedorsuspended.Importantly,duringtheyear,BoatingCampingFishingexercised itsoptionextending its leaseexpiryto2022.ThePropertyremainsfullyletwithgrossincomeofaround$1.9millionp.a.Detailsofthetenancyprofilearesetoutbelow:Tenant Commencement Tenancy(sqm) LeaseExpiryToysRUs October1996 2,820 October2016BoatingCampingFishing December2007 1,454 December2022BarbequesGalore November1996 1,130 November2016LittleLearningSchool April2014 683 April2034Rashay’s October2013 550 September2023Thebankdebtfacilityis$10.7millionagainstaDirectors’valuationof$17.6million.BlackWallrecentlynegotiatedareductionofthebankmarginforthisfacilityto1.95%for3years(2014:2.20%).Duringtheyear,theFundpaidatotalof$405,000ofdistributionstounitholderspaidasquarterlycashdistributionsat9%perannum.The Responsible Entity, BlackWall Fund Services Limited, is a wholly owned subsidiary of ASX‐listedBlackWall Property FundsLimited.BlackWall is a vertically integrated real estate company engaged infunds management and principal investment in deep value or property related special situations.BlackWallislistedontheASXunderthestockcodeBWF.BlackWallandtheResponsibleEntitysharethesameboardofdirectors(Directors)andmanagement.FundStructureTheFundissuedunitsknownasPropertyIncomeandParticipatingEquitySecuritiesorPIPES.ThePIPESstructureisahybridpropertyinvestmentwithcharacteristicsofbothdebtandequity.UnderthePIPESstructure,investorsareallocatedunitsinatrust.Thattrustmakesaninvestment(PIPESCapital) in realestate (120MulgoaRd,Penrith) securedbyadebt instrument (PIPESMortgage).PIPESCapital ranks in priority to the property owner’s equity and subordinate to bank debt. The PIPESMortgagealsogivescontroloftheProperty(includingitscashflow)totheResponsibleEntityonbehalfoftheFund.Distributionsarecomprisedof:

PIPESInterest‐aquarterlypreferredpaymentequatingto9%perannumofPIPESCapital;and PIPESBonus–a20%shareinthecapitalgrowthofthepropertyonterminationoftheFund.

SignificantChangesinAffairsTherewerenosignificantchangestothestateofaffairsoftheFundduringthefinancialyear.




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InformationonOfficeholdershenamesoftheOfficeholdersoftheResponsible ntityinofficeatanytimeduringorsincetheendoftheyeararesetoutbelow Unlessotherwisestated Officeholdershavebeeninofficesincethebeginningofthefinancialyeartothedateofthesefinancialstatements RichardHill,Non ExecutiveDirector(IndependentChairman)Richard illhase tensiveinvestmentban inge perienceandwasthefoundingpartnerofthecorporateadvisoryfirm ill oung Associates Richardhasinvestedin lac all’spro ectssincetheearly1990s Priortoforming ill oung RichardheldanumberofSenior ecutivepositionsin ong ongandNewor with S C e was admitted as an attorney in New or State and was registered by the USSecurities changeCommissionandtheOntarioSecuritiesCommission e istheChairmanofSirte edical Limited listed on the AS In addition Richard is Chairman of the estmead illennium

Institutefor edicalResearch Joseph(Seph)Glew,Non ExecutiveDirectorSephhaswor edinthecommercialproperty industry inNew ealand theUSAandAustralia Sephhasdriven large scale property development and financial structuring for real estate for over 30 years Inaddition since the early 1990s Seph has run many turnaround processes in relation to distressedpropertiesandpropertystructuresforbothprivateandinstitutionalpropertyowners hilewor ingforthe ousingCorporationofNew ealandandthenA P Seph ualifiedasaregistered

valuer and holds a achelor of Commerce In the 1980s he served as an ecutive DirectorwithNewealandbasedpropertygroupChaseCorporationandasaNon ecutiveDirectorwithanumberofotherlistedcompaniesinNew ealandandAustralia RobinTedder,Non ExecutiveDirectorRobinhasaround40years’e perience in investmentandfinancialmar ets ehasbeenan investor inlac all’spro ectssince1997 RobinistheChairmanof intageCapitalPtyLtd aninvestmentcompanywith interests inproperty wealthmanagement logisticsandhealthcare e is a formermemberof theAS andhasservedontheboardsofseveralinvestmentban sinAustraliaandoverseas eisaDirectorofProbiotecLtd apharmaceuticalmanufacturingcompanylistedontheAS RobinisalsoaFellowoftheFinancialServicesInstituteofAustralasia StuartBrown,ExecutiveDirectorandChiefExecutiveOfficerStuarthasbeeninvolvedinpropertyinvestmentforover17years Stuarthasrundebtande uityraisinginrelationtolistedandunlistedrealestatestructureswithoverahalfabilliondollarsinvalue Inhisearliercareer Stuartpractisedasasolicitorintheareasofrealestate mergersandac uisitionsandcorporateadvisorywith allesonsandGilbert obin StuartisanindependentDirectorofCoogee oys’PreparatorySchool CarolineRaw(CompanySecretaryfrom18February2015)Caroline Raw oined the lac all team in 2013 and is responsible for e ecuting corporate and fundtransactionsacrossthe lac allGroup Carolinehasbeenpractisingasasolicitor inNS since200 andhaswor edpredominantlyonIPOs publicandprivatecapitalraisings fundsmanagement corporateadvisory ta eovers andmergers andac uisitions Carolineholds a achelor of Commerce achelor ofLawsandGraduateDiplomainAppliedCorporateGovernance CarolineisalsoaCharteredSecretaryandAssociate emberoftheGovernanceInstituteofAustralia




Don ayly CompanySecretaryuntil18February201 MeetingAttendancesDirector BoardMeetingseetings eld 10

Richard ill 10SephGlew 10Robin edder 10Stuart rown 10EventsSubsequenttoReportingDateandLikelyDevelopmentsothebestoftheDirectors’ nowledge sincetheendofthefinancialyeartherehavebeennomattersorcircumstancesthathavemateriallyaffectedtheFund’soperationsormaymateriallyaffectitsoperations stateofaffairsortheresultsofoperationsinfuturefinancialyears RemunerationIn accordance with the terms of the Constitution and Product Disclosure Statement the Responsiblentityisentitledtoreceiveanannualmanagementfeebasedon0 ofthegrossassetvalueoftheFund hetotalfeespaidtotheResponsible ntityanditsassociatesduringtheyeararesetoutintheRelatedParty ransactionsnote herewerenofeespaidorpayablefromtheFundtotheDirectorsoftheResponsible ntityduringthefinancialyear he Fund does not provide any short term or post employment benefits to its P P include allDirectorsandtheChiefFinancialOfficer im rown InterestsintheFundhenumberofunitsonissueat30 une201 was4 00 000 2014 4 00 000 heResponsible ntityanditsassociatesheld273 1 8unitsintheFundasat30 une201 herewerenowithdrawalsfromtheFundduringtheyear ValueofFund’sAssetshevalueof theFund’sassets is setout in theStatementofFinancialPosition in the otalAssets line RefertotheFinancialAssetsnoteforvaluationdetails EnvironmentalRegulationhe Fund’s operations are not regulated by any environmental regulation under a law of theCommonwealthorofaStateora erritory IndemnitiesofOfficersDuring the financial period the Responsible ntity has paid premiums to insure each of the Directorsnamed in this report along with officers of that Responsible ntity against all liabilities for costs ande pensesincurredbythemindefendinganylegalproceedingsarisingoutoftheirconductwhileactinginthecapacityofdirectororofficeroftheResponsible ntity otherthanconductinvolvingawilfulbreachof




duty Noindemnitieshavebeengivenorinsurancepremiumspaid duringorsincetheendofthefinancialyear foranypersonwhoisorhasbeenanauditortotheFund Non auditServicesandAuditorAmounts paid to the auditor during the year are detailed at the Auditor’s Remuneration note of thefinancialstatements Acopyoftheauditor’sindependencedeclarationasre uiredunderSection307CoftheCorporationsAct2001issetoutinthesefinancialstatements S continuesinofficeinaccordancewithsection327oftheCorporationsAct2001 Signedinaccordancewitharesolutionofthe oardofDirectorsoftheResponsible ntity

StuartBrownDirectorSydney 8September201




StatementofProfitorLossandOtherComprehensiveIncome

FortheYearEnded30June2015

heaccompanynotesformpartofthesefinancialstatements 8

Note

2015

$

2014

$PIP SinterestfromPIP Smortgage 40 000 203 141Interest 310 140Totalrevenue 1 405,310 203,181 PIP Sinterestpaidtounitholders 2 40 000 203 141 Administratione penses 310 140 UndistributedNetProfitFortheYear TotalComprehensiveIncomeFortheYear heFundwasregisteredon1 August2013

The accompanying notes form part of these financial statements.




StatementofFinancialPosition


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Note

2015 2014$

ASSETS CurrentAssets Cashandcashe uivalents 3 3 0 1 Receivables 4 101 12 101 141TotalCurrentAssets 101 47 101 29 Non currentAssets Financialassets 4 00 000 4 00 000TotalNon currentAssets 4 00 000 4 00 000TOTALASSETS 4,601,476 4,601,296 LIABILITIES CurrentLiabilities Payables 101 47 101 29 TotalCurrentLiabilities 101 47 101 29 Non currentLiabilities Financialliabilities 7 4 00 000 4 00 000TotalNon currentLiabilities 4 00 000 4 00 000TOTALLIABILITIES 4,601,476 4,601,296 NETASSETS INVESTORS’FUND Undistributednetincome TOTALINVESTORS’FUND




StatementofChangesinNetAssetsAttributabletoUnitholders


10

AstheFundhasnoe uity theFundhasnotincludedanyitemsofchangesine uityforthecurrentorprioryears




StatementofCashFlows


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Note

2015

$

2014

$CashFlowsFromOperatingActivities InterestreceivedfromPIP Smortgage 40 000 102 000Interestdistributionstounitholders 40 000 101 84 Interestreceived 310 140an chargespaid 11 140 NetCashFlowsFromOperatingActivities 10 195 155CashFlowsFromInvestingActivities

Paymentsforinvestments 4 00 000 NetCashFlowsUsedinInvestingActivities (4,500,000)CashFlowsFromFinancingActivities

Proceedsfromissueofunitstounitholders 4 00 000NetCashFlowsFromFinancingActivities 4,500,000NetIncreaseinCashHeld

195 155

Cashandcashe uivalentsatthebeginningofperiod 1 CashandCashEquivalentsattheEndofPeriod 3 350 155


StatementofChangesinNetAssetsAttributabletoUnitholders


10

AstheFundhasnoe uity theFundhasnotincludedanyitemsofchangesine uityforthecurrentorprioryears




NotestotheFinancialStatements


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1. Revenue 2015

$2014

$PIP SinterestfromPIP Smortgage 40 000 203 141Interest 310 140Total 405,310 203,281

2. PIPESInterestPaidtoUnitholders

2015 2014 CPU $ CPU $Interestonapplicationmoney 41InterestpaidinOctoberforSeptember uarter 2 2 101 2 0 Interestpaidin anuaryforDecember uarter 2 2 101 2 0 InterestpaidinAprilfor arch uarter 2 2 101 2 0 2 2 101 2 0Interestpayablein ulyfor une uarter 2 2 101 2 0 2 2 101 2 0Total 9.00 405,000 4.50 203,141

hisreflectsanannual9 returnona 1investmentfortheyearended30 une201

3. CurrentAssets–CashandCashEquivalents 2015

$2014

$Cashatban 3 0 1 Total 350 155

Cashatban earnsinterestatfloatingratesbasedondailyban depositrates

4. CurrentAssets–Receivables 2015

$2014

$PIP Sinterestreceivable 101 12 101 141Total 101,126 101,141

5. Non currentAssets–FinancialAssets 2015

$2014

$PIP S ortgage 4 00 000 4 00 000Total 4,500,000 4,500,000

heFundhasadvancedmoniessecuredbyaregisteredsecondmortgageoverpropertyat120 ulgoaRoad Penrith

6. CurrentLiabilities–Payables

2015$

2014$

Distributionspayable 101 242 101 141Otherpayable 234 1 Total 101,476 101,296






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7. Non currentLiabilities–FinancialLiabilities

2015

$2014

$Amountsduetounitholders 4 00 000 4 00 000Total 4,500,000 4,500,000ovementsduringtheyear

Openingbalance 4 00 000 Unitsissued 4 00 000Closingbalance 4 00 000 4 00 000TermsandconditionsAll units in the Fund are the same class and carry e ual rights Under the Fund’s Constitution each unitrepresentsarighttoanindividualshareintheFundanddoesnote tendtoarighttotheunderlyingassetsoftheFund heunitsarereferredtoas PropertyIncomeandParticipating uitySecurities’orPIP S oldersofunitsareentitledtoparticipateininvestmentreturnsearnedbytheFundintheproportionthattheirunitholdingcomprisestothetotalnumberofunitsissued andareentitledtoonevoteperunitatunitholders’meetings heFundise pectedtohaveatermof7yearsfromregistration DuetothefinitelifeclausecontainedwithintheFund’sConstitutionandproductdisclosurestatement andinaccordancewiththeAccountingStandards theissuedunitsintheFundhavebeenclassifiedasdebtforthesefinancialstatements

8. Auditor’sRemuneration 2015

$2014

$RemunerationoftheauditoroftheFund Auditorotherauditrelatedservices 7 7 10 000a ationservices 1 390 Total 9,057 10,000heAuditor’sremunerationispaidoutoftheunderlyingpropertyassets

9. CommitmentsandContingencies

herearenocommitmentsorcontingenciesasat30 une201 2014 nil 10. ReconciliationofProfitAfterIncomeTaxtoOperatingCashFlows

2015$

2014$

Profitfortheyear Changeinassetsandliabilities Decrease increase inreceivables 1 101 141 Increaseinpayables 180 101 29

Netcashflowsfromoperatingactivities 195 155






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11. SubsequentEvents

o thebestof theDirectors’ nowledge since theendof the financialyear therehavebeennomattersorcircumstances that havematerially affected the Fund’s operations ormaymaterially affect its operations stateofaffairsortheresultsofoperationsinfuturefinancialyears

12. RelatedPartyTransactions

(a)RelatedParties

Inthesefinancialstatements relatedpartiesarepartiesasdefinedbyAASB124RelatedPartyDisclosures (b)TransactionswithRelatedParties

otalunitholdingsheldbyrelatedpartiesasat30 une201 was819 472 2014 2 7 9 000 InaccordancewiththetermsoftheFundConstitution theResponsible ntityisentitledtoamanagementfee of0 per annumof theproperty’s value payablemonthly inarrears he fees arepaid from theunderlyingpropertyassetsnotfromtheFund’sassets All transactions with related parties were made on normal commercial terms and conditions and atmar etrates Relatedpartytransactionsthatoccurredduringtheyear 2014 monthsto une areasfollows Expenses

2015$

2014$

FundmanagementfeepaidtoResponsible ntity 82 800 41 400Distributionpaid payabletorelatedunitholders 13 112 137 739 Receivablesfromrelatedparties current 101 12 101 141Payablestorelatedparties current 18 3 2 078

13. FinancialRiskManagement

(a) Financialriskmanagement

hemain ris s theFund is e posed to through its financial instrumentsaremar et ris and li uidityris heFund’se posuretocreditris istoonepartybeingthemortgagorPlanlocPtyLtdforwhichasecondmortgage is held as collatoral he Fund sma or financial instruments are financialmortgageassetsandnetassetsattributableduetounitholders he oardofDirectors of theResponsible ntity has overall responsibility for the establishment andoversight of the ris management framewor heymonitor the Fund’s ris e posures by regularlyreviewing financeandpropertymar ets Ananalysisofma or financial instrumentsheldby theFund whicharesub ecttofinancialris isasfollows

2015$

2014$

Financialassets 4 00 000 4 00 000 hereisnomaterialdifferencebetweenthecarryingvalueandthefairvalueofthefinancialassets






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(b) MarketriskheFundise posedtomar etris if insufficientcashflowsaregeneratedbytheunderlyingpropertysupporting the financial assets to enable PIP S ortgage interest to be received by unitholders viadistributions he interest rate for the PIP S ortgage is fi ed at 9 for the life of the Fund Distributions to investors may also be affected by fluctuations in the interest rate applicable to thesenior debt facility secured on the property If interest rates had moved at 30 une with all othervariablesheldconstant profitwouldhavenotbeenmateriallyaffected hereforeasensitivityanalysishasnotbeenprepared

(c) Liquidityrisk

UnitsintheFundareregardedasilli uid hismeansthatthereisnoactivemar etinwhichtosellunitse cept foroff mar et transfer heResponsible ntity has noobligation topurchase or redeemunitsduringthetermoftheFund hereisnosecondarymar etforunitsandtransfersmayonlybeeffectedinaccordancewiththeConstitutionandwiththeapprovaloftheResponsible ntity Attheendoftheyear the Fund held the following financial arrangements that are e pected to readily generate cashinflowsandoutflowsformanagingli uidityris

Maturingwithin1

year$Maturingover5

years$Total

$At30June2015 Financialassets Cashandcashe uivalents 3 0 3 0Receivables 101 12 101 12 PIP S ortgage 4 00 000 4 00 000 101,476 4,500,000 4,601,476Financialliabilities Payables 101 47 101 47 Amountsduetounitholders 4 00 000 4 00 000 101,476 4,500,000 4,601,476

Maturingwithin1

year$Maturingover5

years$Total

$At30June2014 Financialassets Cashandcashe uivalents 1 1 Receivables 101 141 101 141PIP S ortgage 4 00 000 4 00 000 101,296 4,500,000 4,601,296Financialliabilities Payables 101 29 101 29 Amountsduetounitholders 4 00 000 4 00 000 101,296 4,500,000 4,601,296

14. SegmentReporting

heFundcurrentlyoperatesinonebusinesssegmentinAustraliaactingastherecipientofincometowhichinvestorsareentitledtoandtodistributethisincometoinvestorsinproportiontotheirentitlements






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15. FundDetails

hemanagementoftheFundisunderta enat Level1 0 eoStreetNeutral ay NS 2089

16. CriticalAccountingEstimatesandJudgments

he Directors of the Responsible ntity evaluate estimates and udgments incorporated into the financialstatements based on historical nowledge and best available current information stimates assume areasonablee pectationoffutureeventsandarebasedoncurrenttrendsandeconomicdata obtainedbothe ternallyandwithintheFund Keyestimates–impairment

heFundassessesimpairmentateachreportingdatebyevaluatingconditionsspecifictotheFundthatmaylead to impairment of assets he Directors of the Responsible ntity believed it appropriate to raise noimpairmentprovisionsforthecurrentyear

17. StatementofSignificantAccountingPolicies

he Fund is amanaged investment scheme registered in Australia he financial statements for the FundwereauthorisedforissueinaccordancewiththeresolutionoftheDirectorsoftheResponsible ntityonthedatetheywereissued BasisofpreparationhesefinancialstatementsaregeneralpurposefinancialstatementsthathavebeenpreparedinaccordancewithAustralianAccountingStandardsandotherauthoritativepronouncementsoftheAustralianAccountingStandards oardandtheCorporationsAct2001 hefinancialstatementsoftheFundalsocomplywithIFRSasissuedbytheInternationalAccountingStandards oard hefinancialstatementshavebeenpreparedonanaccrualsbasisandarebasedonhistoricalcostsmodifiedby therevaluationofselectednoncurrentassets financialassetsand financial liabilities forwhich the fairvaluebasisofaccountinghasbeenapplied hefollowingisasummaryofthematerialaccountingpoliciesadoptedbytheFundinthepreparationofthefinancialstatements heaccountingpolicieshavebeenconsistentlyapplied unlessotherwisestated NewandamendedstandardsadoptedheFundhasnotadoptedanynewstandardsasnoneofthemhavematerialchangestotheFund’sfinancialstatements Presentationoffinancialstatements

oththefunctionalandpresentationcurrencyoftheFundisAustraliandollars






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Goingconcernhesefinancialstatementshavebeenpreparedonagoingconcernbasis whichcontemplatescontinuityofnormalbusinessactivitiesandtherealisationofassetsandsettlementofliabilitiesintheordinarycourseofbusiness FinancialAssetsAsprovidedforintheConstitution investorsintheFundac uiredunits nownasPIP Sunits heassetsareclassifiedasheld to maturityinvestments eld to maturityinvestmentsarenon derivativefinancialassetswithfi edordeterminablepaymentsandfi edmaturitythatanentityhasthepositiveintentionandabilitytoholdtomaturityotherthan a thosethattheentityuponinitialrecognitiondesignatesasatfairvaluethroughprofitorloss b thosethattheentitydesignatesasavailableforsale andc thosethatmeetthedefinitionofloansandreceivables heoperativeassetoftheFundisaregisteredsecondmortgageover120 ulgoaRoad Penrith Recognition/derecognition

heFundrecognisesfinancialassetsandfinancialliabilitiesonthedateitbecomespartytothecontractualagreement tradedate andrecogniseschangesinfairvalueofthefinancialassetsorfinancialliabilitiesfromthisdate

Afinancialasset or whereapplicableapartofafinancialassetorpartofagroupofsimilarfinancialassets isderecognisedwhere •therightstoreceivecashflowsfromtheassethavee pired theFundretainstherighttoreceivecashflowsfromtheasset buthasassumedanobligationtopaytheminfullwithoutmaterialdelaytoathirdpartyundera passthrough agreement ortheFundhastransferreditsrightstoreceivecashflowsfromtheassetandeither a hastransferredsubstantiallyalltheris sandrewardsoftheasset orb hasneithertransferrednorretainedsubstantiallyalltheris sandrewardsoftheassetbuthastransferredcontroloftheasset

Afinancialliabilityisderecognisedwhentheobligationundertheliabilityisdischarged cancelledore pires Anygainsor lossesarisingonderecognitionoftheasset calculatedasthedifferencebetweenthedisposalproceedsandthecarryingamountoftheasset isincludedinthestatementofcomprehensiveincomeinthereportingperiodtheassetisderecognisedasrealisedgainsorlossesonfinancialinstruments Measurement

PipesMortgage

ortgageloansaremeasuredinitiallyatfairvalueplustransactioncostsandsubse uentlyamortisedusingtheeffectiveinterestratemethod lessimpairmentlossesifany heResponsible ntityassessesateachreportingperioddatewhetherthereisanyob ectiveevidencethatmortgage loans are impaired Amortgage loan is deemed to be impaired if there is ob ective evidence ofimpairmentasaresultofoneormoreeventsthathasoccurredaftertheinitialrecognitionofthemortgage






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loan an incurred lossevent and that lossevent orevents hasan impacton theestimated futurecashflowsofthemortgageloanthatcanbereliablyestimated videnceofimpairmentmayincludeindicationsthattheborroweroragroupofborrowersise periencingotherfinancialdifficulty defaultordelin uency in interestorprincipalpayments theprobabilitythat theywill enter ban ruptcyorother financial reorganisation andwhereobservabledata indicate that there is ameasurabledecreaseintheestimatedfuturecashflows suchaschanges inarrearsoreconomicconditionsthatcorrelatewithdefaults If any such indication of impairment e ists an impairment loss is recognised in the statement ofcomprehensive income as the difference between the asset s carrying amount and the present value ofestimatedfuturecashflowsdiscountedattheoriginaleffectiveinterestrate If in a subse uent period the amount of the impairment loss decreases and the decrease can be relatedob ectivelytoaneventoccurringaftertheimpairmentwasrecognised thepreviouslyrecognisedimpairmentlossisreversedbyad ustingtheloanlossprovisionaccount ForthepurposeofacollectiveevaluationofimpairmenttheFundconsiderscreditris characteristicssuchasassettype industry geographiclocation collateraltype pastduestatusandotherrelevantfactors CashandCashEquivalents

Cash and cash e uivalents include cashonhand deposits held at callwith ban s other short termhighlyli uidinvestmentswithoriginalmaturitiesofthreemonthsorless andban overdrafts Loansandreceivables/payables

Loans and receivables payables are non derivative financial assets liabilities with fi ed or determinablepaymentsthatarenot uotedinanactivemar et hiscategoryincludesshorttermreceivables payables Payables

Liabilitiesforcreditorsarecarriedatcostwhichisthefairvalueoftheconsiderationtobepaidinthefutureforgoodsorservicesreceived whetherornotbilledtotheFundatbalancedate heamountsareunsecuredandareusuallypaidwithin30daysofrecognition Revenue

Interestincomeisrecognisedusingtheeffectiveinterestmethodwheninterestisreceived receivable hisisamethodof calculating the amortised cost of a financial asset andallocating the interest incomeover therelevantperiodusingtheeffectiveinterestrate AllrevenueisstatednetoftheamountofGS

IncomeTax

Undercurrentincometa legislationtheFundisnotliabletoAustralianincometa providedtheunitholdersarepresentlyentitledtotheta ableincomeoftheFundandtheFundgenerallydistributesitsta ableincome GST

Revenues e penses andassets are recognisednetof the amountofGS e ceptwhere the amountofGS incurredisnotrecoverablefromtheAustralian a ationOffice InthesecircumstancestheGS isrecognisedaspartofthecostofac uisitionoftheassetoraspartofanitemofthee pense ReceivablesandpayablesinthebalancesheetareshowninclusiveofGS






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Cash flows are presented in the cash flow statement on a gross basis e cept for the GS component ofinvestingandfinancingactivities whicharedisclosedasoperatingcashflows Unitprices

UnitpricesaredeterminedinaccordancewiththeFund’sConstitutionandProductDisclosureStatementandare calculated as net assets attributable to unitholders of the Fund less estimated costs divided by thenumberofunitsonissue NewAccountingStandardsandInterpretationsherearenostandardsthatarenotyeteffectiveandthataree pectedtohaveamaterialimpactontheFundinthecurrentorfuturereportingperiodsandonforeseeablefuturetransactions




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Directors’DeclarationIntheopinionoftheDirectorsof lac allFundServicesLimited theResponsible ntityof lac allPenrithFundNo 3 a thefinancialstatementsandnotesareinaccordancewiththeCorporationsAct2001 including

i complyingwithAccountingStandards theCorporationsRegulations2001andothermandatoryprofessionalreportingre uirements and

ii giving a true and fair view of the Fund’s financial position as at 30 une 201 and of itsperformancefortheperiodendedonthatdate and

b therearereasonablegroundstobelievethattheFundwillbeabletopayitsdebtsasandwhentheybecomedueandpayable

he Statement of Significant Accounting Policies confirms that the financial statements also comply withInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandards oard hisdeclarationismadeinaccordancewitharesolutionofthe oardofDirectorsoftheResponsible ntity

StuartBrownDirectorSydney 8September201




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ContentsNotestoTheFinancialStatements1 Revenue Page122 PIP SInterestPaidtoUnitholders Page123 CurrentAssets–CashandCash uivalents Page124 CurrentAssets Receivables Page12Non currentAssets–FinancialAssets Page12

CurrentLiabilities–Payables Page12

7 Non currentLiabilities–PIP S ortgage Page138 Auditors’Remuneration Page139 CommitmentsandContingencies Page1310 ReconciliationofProfitAfterIncome a toOperatingCashFlows Page1311 Subse uent vents Page1412 RelatedParty ransactions Page1413 FinancialRis anagement Page14 14 SegmentReporting Page1 1 FundDetails Page1 1 CriticalAccounting stimatesand udgments Page1 17 StatementofSignificantAccountingPolicies Page1




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GLOSSARY

AS AustralianSecurities changelac all lac allPropertyFundsLimitedand where

applicable itssubsidiaries including lac allFundServicesLimited

Fund lac allPenrithFundNo 3GS Goodsandservicesta IFRS InternationalFinancialReportingStandards

P eymanagementpersonnelPIP S PropertyIncomeParticipating uitySecuritiesp a PerannumProperty 120 ulgoaRoad PenrithResponsible ntity lac allFundServicesLimited

Annual Financial StatementsYear Ended 30 June 2015Managed By:

Level 1, 50 Yeo Street Neutral Bay, NSW 2089Responsible Entity: BlackWall Fund Services LimitedABN 39 079 608 825


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