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ASX ANNOUNCEMENT GDI PROPERTY GROUP 22 FEBRUARY 2021 GDI half year results for the period ended 31 December 2020 GDI¹ is pleased to release its half year financial results for the period ended 31 December 2020 . Key highlights • • • Development approval for the new approximately 9,000sqm office development on the excess land at Westralia Square ( WS2 ) Significant progress with the development at 1 Mill Street , Perth , with development approval anticipated shortly Leasing successes , particularly at Westralia Square and 197 St Georges Terrace , Perth Settlement of the acquisition of 180 Hay Street , Perth , with an immediate $ 2.2 million uplift in value Operational highlights GDI has a small number of assets that have significant capital value upside through active asset management , including development opportunities , capital expenditure programmes and releasing . Development Both of GDI's major development opportunities were progressed during the period . At Westralia Square , development approval was granted for the new approximately 9,000sqm office building on the vacant land . The approval is for a new timber / steel hybrid office building ( WS2 ) and full precinct public realm upgrade to the existing office building ( WS1 ) . Construction is anticipated to commence around June 2021 with total forecast costs of $ 63.0 million , including precinct works but excluding incentives and finance costs . We anticipate WS2 will be highly sought after by the occupier market on completion in late 2022 . Plans were also lodged for a new approximately 45,000sqm office tower on 1 Mill Street , Perth . We are in discussions with a number of either all or part of building tenants to pre - commit to the development and are hopeful that significant progress will be made this year . Leasing Our portfolio comprises assets that have a significant amount of leasing opportunities . Pleasingly , in Perth there are numerous indicators that point to an increase in leasing activity over 2021 and we are very heartened by the number of inspections and enquiries at the start of 2021 . Our largest asset by capital value is WS1 . We purchased Westralia Square in October 2017 for $ 216.25 million , equating to a rate of approximately $ 6,700 / sqm of NLA . In our opinion , we were able to purchase the property so well due to its very short lease expiry profile , with both the Minister for Works ( 25,664sqm ) and UGL's ( 3,374sqm ) leases expiring in the first half of 2020. As previously disclosed , the Minister for Works agreed to two new leases commencing 1 February 2021 , a five - year lease² to the Western Australia Police Force ( 12,689sqm ) and a six - year lease to Births , Deaths and Marriages ( 1,833sqm ) . During the period we concluded the lease negotiations with Cash Converters Pty Limited for a new 10 - year lease ( level 11 , 1,807sqm ) commencing 1 October 2021 and post balance date have executed a heads of agreement for all of level 12 ( 1,807sqm ) for a new 6.5 year lease commencing early 2022 . Specialist Income and Value Add Property Fund Managers www.gdi.com.au p . +61 2 9223 4222 f . +61 2 9252 4821 e . info@gdi.com.au Level 23 , 56 Pitt Street Sydney NSW 2000 PO Box R1845 Royal Exchange NSW 1225 GDI Property Group Limited ACN 166 479 189 GDI Property Trust ARSN 166 598 161 LINKING EQUITY TO PERFORMANCE