THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTIONThe interpretations and definitions commencing on page 9 of this circular have, where appropriate, been used on this cover page. If you are in any doubt as to what action to take, please consult your broker, CSDP, banker, accountant, legal advisor or other professional advisor.Action requiredIf you have disposed of all your Orion linked units, this circular should be handed to the purchaser of such linked units or to the broker, CSDP, banker or other agent through whom the disposal was effected.Beneficial linked unitholders who have dematerialised their linked units through a CSDP or broker who wish to attend the general meeting of Orion debenture holders meeting and general meeting of Orion shareholders must request their CSDP or broker to provide them with the necessary letter of representation to attend the general meeting of Orion debenture holders and the general meeting of Orion shareholders or must instruct their CSDP or broker to vote on their behalf in terms of their respective agreements with their CSDP or broker.Orion linked unitholders are referred to page 2 of this circular, which sets out the detailed action required of them in respect of the transaction set out in this circular.Orion does not accept responsibility and will not be held liable for any failure on the part of the CSDP or broker of any holder of dematerialised linked units to notify such linked unitholder of the contents of this circular.

ORION REAL ESTATE LIMITED(Incorporated in the Republic of South Africa)(Registration number 1997/021085/06) Share code: ORE ISIN: ZAE000075651(“Orion” or “the company”)

CIRCULAR TO ORION LINKED UNITHOLDERSrelating to:the Capital Restructure, which includes:• the conversion of the company’s current linked unit capital structure to an all share structure by:

(i) the proposed amendment to the Orion Debenture Trust Deed to permit the delinking, cancellation and capitalisation of the Orion debentures;

(ii) the proposed delinking of each Orion ordinary par value share from a Orion debenture so as to no longer constitute a linked unit;

(iii) the proposed cancellation of each debenture, for no consideration, to be effected by way of a scheme of arrangement in terms of section 114(1)(c) of the Companies Act;

(iv) the proposed capitalisation of an amount equal to the issue price of each debenture from an accounting perspective for purposes of financial reporting in accordance with IFRS to form part of the stated capital attributable to the ordinary shares that have been issued by Orion;

(v) termination of the Orion Debenture Trust Deed; and (vi) the conversion of Orion par value shares to Orion no par value shares.

• the amendment of Orion’s Memorandum of Incorporation to reflect the change in Orion’s capital structure;

and enclosing:• a report prepared by the independent expert in terms of section 114(3) of the Companies Act and the Takeover

Regulations;• an extract of section 115 of the Companies Act dealing with the approval requirement for the scheme and section 164

of the Companies Act dealing with dissenting Orion linked unitholders’ appraisal rights;• a notice convening the general meeting of Orion debenture holders (pink);• a notice convening the general meeting of Orion shareholders (green);• a form of proxy to vote at the general meeting of Orion debenture holders for use by certificated debenture holders

and dematerialised debenture holders who have elected “own-name” registration only (yellow);• a form of proxy to vote at the general meeting of Orion shareholders for use by certificated shareholders and

dematerialised shareholders who have elected “own-name” registration only (orange); and• a form of surrender in respect of the conversion of certificated linked units to certificated shares of no par value for

use by certificated linked unitholders only (blue).

Lead Transaction Sponsor

Transaction Manager Attorneys

Independent Expert Sponsor

D P Cohen Consulting TUGENDHAFT WAPNICK BANCHETTI

AND PARTNERS

Date of issue: Monday, 13 April 2015This circular is only available in English and is available on the company’s website at www.oriongroup.co.za. Copies of this circular may also be obtained at the company’s registered office, 16th Floor, Orion House, 49 Jorissen Street, Braamfontein, during normal business hours from 08:00 until 16:00 from the date of issue of this circular up to and including the date of the general meeting of Orion debenture holders and the general meeting of Orion shareholders.

CORPORATE INFORMATION AND ADVISORS

Independent ExpertBDO Corporate Finance Proprietary Limited22 Wellington Road Parktown, 2193(Private Bag X60500, Houghton, 2041)

Sponsor Arbor Capital Sponsors Proprietary Limited Ground Floor, One Health BuildingWoodmead North Office Park54 Maxwell DriveWoodmead, 2191(PO Box 62397, Marshalltown, 2107)

Transfer secretariesComputershare Investor Services Proprietary Limited Ground Floor70 Marshall StreetJohannesburg, 2001(PO Box 61051, Marshalltown, 2107)

Trustees for debenture holdersGeorge Ross Munro Ross Munro Attorneys 44B Wierda Road West Wierda Valley, Sandton, 2196PO Box 9366, Johannesburg, 2000

Company secretary and registered office

Company secretaryCorporate Governance Facilitators CC

Registered office16th FloorOrion House49 Jorissen StreetBraamfonteinJohannesburg, 2000(PO Box 31416, Braamfontein, 2017)

Lead Transaction Sponsor Deloitte & Touche Sponsor Services Proprietary Limited Deloitte & Touche PlaceThe Woodlands20 Woodlands DriveWoodmead, 2196(Private Bag X6, Gallo Manor, 2052)

Transaction Manager D P Cohen Consulting Proprietary LimitedGround Floor, FedGroup House89 Bute Lane, SandownSandton, 2196Postnet Suite 109(Private Bag X9, Benmore, 2010)

AttorneysTugendhaft Wapnick Banchetti and Partners20th Floor, Sandton City Office Towers5th StreetSandton, 2146(PO Box 786728, Sandton, 2146)

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TABLE OF CONTENTS

Page

CORPORATE INFORMATION IFC

ACTION REQUIRED BY LINKED UNITHOLDERS 2

SALIENT DATES AND TIMES 7

INTERPRETATIONS AND DEFINITIONS 9

CIRCULAR TO LINKED UNITHOLDERS1. Introduction 122. TaxationofREITs 143. Rationale 154. Thescheme 155. AmendmentsoftheDebentureTrustDeedandtheCompany’sMemorandumofIncorporation 206. Conversiontonoparvalueshares 207. TerminationoftheDebentureTrustDeed 208. Generalmeetings 219. Proceduretobefollowedbylinkedunitholders 2110.Thecompany’ssharecapital 2211.Financialinformation 2212.Directors’information 2413.Interestsofthedirectors 2414.Management 2515.Agreementsinrelationtothescheme 2516.Majorlinkedunitholders 2517.Relatedandconcertparties 2518.Materialchanges 2519.Litigationstatements 2520.Section114report 2621.Viewsoftheboard 2622.Irrevocableundertaking 2623.Directors’responsibilitystatement 2624.Consents 2625.Costs 2726.Documentsavailableforinspection 27

Annexure 1 Opinionoftheindependentexpert 28Annexure 2 DebentureTrustee’sapproval 37Annexure 3 TheMoIAmendments 38Annexure 4 Linkedunitpricehistory 40Annexure 5 Directors’information 42Annexure 6 Boardreportontheconversionoftheparvalueordinarysharesintoordinaryshares

ofnoparvalue 44Annexure 7 Historicalfinancialinformation 46

Notice of the general meeting of Orion debenture holders(pink) 53Form of proxy – generalmeetingofOriondebentureholders(yellow) AttachedNotice of the general meeting of Orion shareholders(green) 59Form of proxy – generalmeetingofOrionshareholders(orange) AttachedForm of surrender(forcertificatedlinkedunitholdersonly)(blue) Attached

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ACTION REQUIRED BY LINKED UNITHOLDERS

The interpretations and definitions commencing on page 9 of this circular apply mutatis mutandis tothis section.

IfyouhavedisposedofallyourOrionlinkedunits,thenthiscircular,togetherwiththeaccompanyingnoticesconveningthegeneralmeetingofOriondebentureholdersandthegeneralmeetingofOrionshareholders,formsofproxyandaformofsurrender(blue),shouldbeforwardedtothepurchasertowhom,orthebroker,agent,CSDPorbankerthroughwhom,youdisposedofyourOrionlinkedunits.

PleasetakecarefulnoteofthefollowingprovisionsregardingtheactiontobetakenbyOrionlinkedunitholders.

AgeneralmeetingofOriondebentureholderswillbeheldat10:00onThursday,14May2015attheregisteredofficeofOrionat16thFloor,OrionHouse,49JorissenStreet,Braamfontein,forthepurposeofconsideringand,ifdeemedfit,passing,withorwithoutmodificationtheresolutionsrequiredtoapprovethetransaction.A noticeconveningsuchgeneralmeetingofOriondebentureholdersisattachedhereto,andformspartofthiscircular.

ThegeneralmeetingofOrionshareholderswillbeheldatthelaterof10:30or10minutesafterthecompletionofthegeneralmeetingofOriondebentureholdersonThursday,14May2015attheregisteredofficeofOrionat16thFloor,OrionHouse,49JorissenStreet,Braamfontein,forthepurposeofconsideringand,ifdeemedfit, passing, with or without modification, the resolutions required to approve the transaction. A noticeconveningsuchgeneralmeetingofOrionshareholdersisattachedhereto,andformspartofthiscircular.

1. DEMATERIALISED LINKED UNITHOLDERS WHO DO NOT HAVE OWN-NAME REGISTRATION

1.1 Voting at the general meeting of Orion debenture holders

1.1.1 IfyouwishtoattendthegeneralmeetingofOriondebentureholders,youshouldinstructyour CSDP or broker to issue you with the necessary letter of representation to attendthe general meeting of Orion debenture holders in person, in the manner stipulated inthe custodyagreementgoverningtherelationshipbetweenyouandyourCSDPorbroker.These instructionsmustbeprovidedto theCSDPorbrokerbythecut-off timeanddateadvisedbytheCSDPorbrokerforinstructionsofthisnature.

1.1.2 Ifyoudonotwishto,orareunabletoattendthegeneralmeetingofOriondebentureholders,butwishtovotethereat,youshouldprovideyourCSDPorbrokerwithyourvotinginstructionsinthemannerstipulatedinthecustodyagreementgoverningtherelationshipbetweenyouandyourbroker.TheseinstructionsmustbeprovidedtotheCSDPorbrokerbythecut-offtimeanddateadvisedbytheCSDPorbrokerforinstructionsofthisnature.If yourCSDPorbrokerdoesnotobtainvotinginstructionsfromyou,itwillbeobligedtovoteinaccordancewiththeinstructionscontainedinthecustodyagreementconcludedbetweenyouandyourCSDPorbroker.

1.1.3 Youmustnot completetheattachedformofproxy.

1.2 Voting at the general meeting of Orion shareholders if you wish to attend the general meeting of Orion shareholders, you should instruct your CSDP or broker to issue you with the necessary letter of representation to attend the general meeting of Orion shareholders in person, in the manner stipulated in the custody agreement governing the relationship between you and your CSDP or broker. These instructions must be provided to the CSDP or broker by the cut-off time and date advised by the CSDP or broker for instructions of this nature.

1.2.1 Ifyoudonotwishto,orareunabletoattendthegeneralmeetingofOrionshareholders,butwishtovotethereat,youshouldprovideyourCSDPorbrokerwithyourvotinginstructionsinthemannerstipulatedinthecustodyagreementgoverningtherelationshipbetweenyouandyourbroker.TheseinstructionsmustbeprovidedtotheCSDPorbrokerbythecut-offtimeanddateadvisedbytheCSDPorbrokerforinstructionsofthisnature.IfyourCSDPor

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brokerdoesnotobtainvotinginstructionsfromyou,itwillbeobligedtovoteinaccordancewiththeinstructionscontainedinthecustodyagreementconcludedbetweenyouandyourCSDPorbroker.

1.2.2 Youmustnotcompletetheattachedformofproxy.

1.3 Form of surrender

1.3.1 YouraccountatyourCSDPorbrokerwillbeupdatedautomatically.

1.3.2 Youmust notcompletetheattachedformofsurrender(blue).

1.4 Surrender of documents of title

Youdonothavetosurrenderanydocumentsoftitle.ThiswillbedonebyyourCSDPorbroker.

2. DEMATERIALISED LINKED UNITHOLDERS WHO HAVE OWN-NAME REGISTRATION

2.1 Voting at the general meeting of Orion debenture holders

2.1.1 Youmayattend,speakandvoteatthegeneralmeetingofOriondebentureholdersinpersonsubjecttosections57and58oftheCompaniesAct.

2.1.2 IfyoudonotwishtoorareunabletoattendthegeneralmeetingofOriondebentureholdersbutwishtoberepresentedthereat,youmustcompletetheattachedformofproxyforthegeneralmeetingofOriondebentureholdersinaccordancewiththeinstructionscontainedthereinandensurethat it isreceivedbythetransfersecretaries,ComputershareInvestorServices Proprietary Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001(PO Box61051,Marshalltown,2107)bynolaterthan10:00onTuesday,12May2015.

2.2 Voting at the general meeting of Orion shareholders

2.2.1 Youmayattend,speakandvoteat thegeneralmeetingofOrionshareholders inpersonsubjecttosections57and58oftheCompaniesAct.

2.2.2 If youdonotwish toorareunable toattend thegeneralmeetingofOrionshareholdersbutwishtoberepresentedthereat,youmustcompletetheattachedformofproxyforthegeneralmeetingofOrionshareholdersinaccordancewiththeinstructionscontainedthereinandensurethatitisreceivedbythetransfersecretaries,ComputershareInvestorServicesProprietaryLimited,GroundFloor,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)bynolaterthan10:30onTuesday,12May2015.

2.3 Form of surrender

2.3.1 YouraccountatyourCSDPorbrokerwillbeupdatedautomatically.

2.3.2 Youmustnot completetheattachedformofsurrender(blue).

2.4 Surrender of documents of title

Youdonothavetosurrenderanydocumentsoftitle.ThiswillbedonebyyourCSDPorbroker.

3. CERTIFICATED LINKED UNITHOLDERS

3.1 Voting at the general meeting of Orion debenture holders

3.1.1 YoumayattendthegeneralmeetingofOriondebentureholdersandspeakandvotethereatsubjecttosections57and58oftheCompaniesAct.

3.1.2 IfyoudonotwishtoorareunabletoattendthegeneralmeetingofOriondebentureholdersbutwishtoberepresentedthereat,youmustcompletetheattachedformofproxyforthegeneralmeetingofOriondebentureholdersinaccordancewiththeinstructionscontainedthereinandensurethat it isreceivedbythetransfersecretaries,ComputershareInvestorServices Proprietary Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001(PO Box61051,Marshalltown,2107)bynolaterthan10:00onTuesday,12May2015.

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3.2 Voting at the general meeting of Orion shareholders

3.2.1 You may attend the general meeting of Orion shareholders and speak and vote thereatsubjecttosections57and58oftheCompaniesAct.

3.2.2 If youdonotwish toorareunable toattend thegeneralmeetingofOrionshareholdersbutwishtoberepresentedthereat,youmustcompletetheattachedformofproxyforthegeneralmeetingofOrionshareholdersinaccordancewiththeinstructionscontainedthereinandensurethatitisreceivedbythetransfersecretaries,ComputershareInvestorServicesProprietaryLimited,GroundFloor,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)bynolaterthan10:30onTuesday,12May2015.

3.3 Surrender of documents of title

3.3.1 Iftheschemebecomesoperative,youwillberequiredtosurrenderyourdocumentsoftitleinrespectofallyourlinkedunits.

3.3.2 IfyouwishtoexpeditereceiptofthenewdocumentsoftitleinrespectofyourOrionordinaryshares and surrender your documents of title in anticipation of the scheme becomingoperative,youshouldcompletetheattachedformofsurrender(blue)andreturnit,togetherwiththerelevantdocumentsoftitlerelatingtoallyourlinkedunits,inaccordancewiththeinstructionscontainedtherein,tothetransfersecretaries,ComputershareInvestorServicesProprietaryLimited,GroundFloor,70MarshallStreet,Johannesburg,2001(POBox61763,Marshalltown,2107)tobereceivedby12:00ontheschemeimplementationrecorddate.

3.3.3 Ifdocumentsoftitlerelatingtoanylinkedunitstobesurrenderedarelostordestroyed,Orionmaydispensewiththesurrenderofsuchdocumentsoftitleuponproductionofevidencesatisfactorytothecompanythatthedocumentsoftitletothelinkedunitsinquestionhavebeen lostordestroyedanduponprovisionofasuitable indemnityon termssatisfactoryto them.Accordingly, if thedocumentsof title inrespectofanyofyour linkedunitshavebeendestroyed,youshouldneverthelessreturntheattachedformofsurrender(blue),dulysignedandcompleted,togetherwithadulysignedandcompletedindemnityformwhichisobtainablefromthetransfersecretaries.

4. GENERAL

4.1 Approval of the scheme and other resolutions at the general meeting of Orion debenture holders

4.1.1 In order to be approved, each of the special resolutions to be proposed at the generalmeetingofOriondebentureholdersmustbepasseduponashowofhandsbyamajorityconsistingofnotlessthan75%ofthedebentureholderspresentinpersonorrepresentedbyproxyandvotingthereat,or,ifapollisdulydemanded,byamajorityconsistingofnotless than75%of thevotescastat suchpollbydebentureholderspresent inpersonorrepresentedbyproxy.

4.1.2 AquorumforthepurposesofconsideringthespecialresolutionsproposedatthegeneralmeetingofOriondebentureholdersshallconsistofdebentureholderspresentinpersonorrepresentedbyproxyandholdinginaggregateatleast25%ofthedebenturestheninissue.

4.1.3 Additionally,theresolutioninrespectoftheschememustbeapprovedbyspecialresolutionof the debenture holders in accordance with section 115 of the Companies Act, at thegeneralmeetingofOriondebentureholders.

4.1.4 Inorder tobeapproved,eachof theordinary resolutions tobeproposedat thegeneralmeetingofOriondebentureholdersmustbepassed,uponashowofhands,byamajorityofdebentureholders,presentinpersonorrepresentedbyproxy,andvotingthereat,or,ifapollisdulydemanded,byamajorityofvotescastatsuchpollbydebentureholderspresentinpersonorrepresentedbyproxy.

4.1.5 A quorum for the purposes of considering the ordinary resolutions proposed at thedebenturegeneralmeetingofOriondebentureholdersshallconsistofdebentureholderspresentinpersonorrepresentedbyproxyandholdinginaggregateatleastonetenthofthedebenturestheninissue.

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4.2 Electronic participation at the general meeting of Orion debenture holders

Debentureholdersortheirproxiesmayparticipatein(butnotvoteat)thegeneralmeetingofOriondebentureholdersbywayofateleconferencecalland,iftheywishtodoso:

• mustcontactthecompanysecretary(byemailattheaddresscdkneale@mweb.co.za)nolaterthan10:00onTuesday,12May2015inordertoobtainapinnumberanddial-indetailsforthatconferencecall;

• willberequiredtoprovidereasonablysatisfactoryidentification;and

• will be billed separately by their own telephone service providers for their telephone call toparticipateinthegeneralmeetingofOriondebentureholders,

provided that debenture holders and their proxies will not be able to vote telephonically at thegeneralmeetingofOriondebentureholdersandwillstillneedtoappointaproxytovoteontheirbehalfatthegeneralmeetingofOriondebentureholders.

4.3 Court approval

4.3.1 Debentureholdersareadvisedthat,intermsofsection115(3)oftheCompaniesAct,Orionmay incertaincircumstancesnotproceed to implement thespecial resolutions requiredtoapprovethescheme,despitethefactthatithasbeenadoptedatthegeneralmeetingof Oriondebentureholders,withouttheapprovaloftheCourt.

4.3.2 Acopyof section115of theCompaniesActpertaining to the requiredapproval for thescheme is set out in Appendix A to the independent expert’s report and forms part ofthis circular.

4.4 Dissenting Orion debenture holders

4.4.1 A statement informing Orion debenture holders of their rights under section 164 of theCompanies Act is set out in the notice of general meeting of Orion debenture holdersattachedtothiscircular.

4.4.2 Acopyofsection164oftheCompaniesAct,whichsetsoutthedissentingOriondebentureholders’appraisalrights,iscontainedinAppendixAtotheindependentexpert’sreportandformspartofthiscircular.

4.4.3 Any dissenting Orion debenture holder that withdraws his demand made in termsof section 164(5)to164(8)oftheCompaniesAct,eithervoluntarilyorpursuanttoanorderoftheCourt,orallowsanofferbyOrionintermsofsection164(11)oftheCompaniesActtolapsewithoutexercisinghisrightsintermsofsection164(14)oftheCompaniesAct,shall,ifsuchdissentingOriondebentureholderwithdrewhisdemandorallowedtheoffertolapseonorpriorto12:30ontheschemeimplementationrecorddate,besubjecttotheprovisionsofthescheme.

4.5 Approval of the special and ordinary resolutions at the general meeting of Orion shareholders

4.5.1 In order to be approved, each of the special resolutions to be proposed at the generalmeetingofOrionshareholdersmustbesupportedbyatleast75%ofvotingrightsexercisedontheresolution.

4.5.2 Inorder tobeapproved,eachof theordinary resolutions tobeproposedat thegeneralmeetingofOrionshareholdersmustbesupportedbymorethan50%ofthevotingrightsexercised thereon at the general meeting of Orion shareholders, present in person orrepresentedbyproxy,tobeapproved.

4.5.3 A quorum for the purposes of considering the shareholder resolutions proposed at thegeneralmeetingshallconsistofthreeshareholdersofthecompanypersonallypresent(andiftheshareholderisabodycorporate,itmustberepresented)andentitledtovoteatthegeneralmeetingofOrionshareholders. Inaddition, aquorumshall comprise25%ofallthe votingrightsthatareentitledtobeexercisedbyshareholdersinrespectofeachmattertobedecidedatthegeneralmeetingofOrionshareholders.

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4.6 Electronic participation at the general meeting of Orion shareholders

Shareholdersanddebentureholdersortheirproxiesmayparticipatein(butnotvoteat)thegeneralmeetingofOrionshareholdersbywayofateleconferencecalland,iftheywishtodoso:

• mustcontactthecompanysecretary(byemailattheaddresscdkneale@mweb.co.za)nolaterthan10:30onTuesday,12May2015inordertoobtainapinnumberanddial-indetailsforthatconferencecall;

• willberequiredtoprovidereasonablysatisfactoryidentification;and

• will be billed separately by their own telephone service providers for their telephone call toparticipateinthegeneralmeetingofOrionshareholders,

providedthatshareholdersandtheirproxieswillnotbeabletovotetelephonicallyatthegeneralmeetingofOrionshareholdersandwillstillneedtoappointaproxytovoteontheirbehalfatthegeneralmeetingofOrionshareholders.

4.7 Dematerialisation

Ifyouwishtodematerialiseyour linkedunits,pleasecontactyourbroker.LinkedunitholdersareadvisedthatnodematerialisationorrematerialisationoflinkedunitsmaytakeplaceafterThursday,11June2015.

The company does not accept responsibility and will not be held liable for any failure on the part of the CSDP or broker of a dematerialised linked unitholder to notify such linked unitholder of the general meeting of Orion debenture holders and/or the general meeting of Orion shareholders or any business to be conducted thereat.

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SALIENT DATES AND TIMES

2015

Recorddateinordertoreceivecircular(togetherwiththenoticesconveningthegeneralmeetingofOriondebentureholdersandthegeneralmeetingofOrionshareholders) Friday,27March

Circular(togetherwiththenoticesconveningthegeneralmeetingofOriondebentureholdersandthegeneralmeetingofOrionshareholders)postedon Monday,13April

Announcementrelatingtotheissueofthecircular(togetherwithnoticesconveningthegeneralmeetingofOriondebentureholdersandthegeneralmeetingofOrionshareholders)releasedonSENSon Monday,13April

Announcementrelatingtotheissueofthecircular(togetherwiththenoticesconveningthegeneralmeetingofOriondebentureholdersandthegeneralmeetingofOrionshareholders)publishedinthepresson Tuesday,14April

LastdaytotradeinordertobeeligibletovoteatthegeneralmeetingofOriondebentureholdersandthegeneralmeetingofOrionshareholders Thursday,30April

Votingrecorddate Friday,8May

LastdaytolodgeformsofproxyforthegeneralmeetingofOriondebentureholders(by10:00) Tuesday,12May

LastdaytolodgeformsofproxyforthegeneralmeetingofOrionshareholders(by 10:30) Tuesday,12May

GeneralmeetingofOriondebentureholdersheldat10:00on Thursday,14May

GeneralmeetingofOrionshareholdersheldatthelaterof10:30or10minutesafterthecompletionofthegeneralmeetingofOriondebentureholderson Thursday,14May

ResultsofthegeneralmeetingofOriondebentureholdersandtheshareholders’generalmeetingreleasedonSENSon Thursday,14May

SpecialresolutionssubmittedtoCIPCforfilingon Thursday,14May

ResultsofthegeneralmeetingofOriondebentureholdersandthegeneralmeetingof Orionshareholderspublishedinthepresson Friday,15May

Lastdateonwhichlinkedunitholderscanmakeapplicationtocourtintermsofsection115(3)(a)oftheCompaniesActiftheschemeisapprovedbylinkedunitholdersatthegeneralmeetingsbutwithsufficientopposingvotesthatlinkedunitholdersmayrequirethecompanytoobtaincourtapprovalfortheschemeascontemplatedinsection115(3)(a) Thursday,28May

LastdateforOriontogivenoticeofadoptionofthespecialresolutionapprovingtheSchemetounitholdersobjectingtothespecialresolutionon Thursday,28May

If no linked unitholders exercise their rights in terms of section 115(3)(a) of the Companies Act

SpecialresolutionsexpectedtoberegisteredbyCIPConorbefore Wednesday,10June

FinalisationdateannouncementexpectedtobereleasedonSENSon Thursday,11June

Finalisationdateannouncementexpectedtobepublishedinthepresson Friday,12June

ExpectedlastdaytotradeinexistinglinkedunitsontheJSEpriortothedelinkingofthelinkedunitsandthecapitalisationofthedebentureson Friday,19June

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2015

TradingindelinkedordinarysharesunderthenewISIN:ZAE000201695andtheexistingcodeof“ORE”commenceson Monday,22June

ExpectedsuspensionoflistingoflinkedunitsontheJSE Monday,22June

Expectedschemeimplementationrecorddateforthedelinkingofthelinkedunitsandthecapitalisationofthedebenturesatthecloseofbusinesson Friday,26June

Expectedschemeoperativedate Monday,29June

ExpecteddatedematerialisedshareholderswillhavetheiraccountsupdatedattheirCSDPorbrokeron Monday,29June

Expecteddateofissueofnewreplacementsharecertificatesprovidedthattheoldlinkedunitcertificateshavebeensurrenderedby12:00onFriday,26June2015(anycertificatedlinkedunitssurrenderedafterthisdatewillbereplacedwithinfivebusinessdaysafterreceiptbythetransfersecretaries) Monday,29June

Expectedterminationoflistingoflinkedunits(atthecommencementoftrade) Monday,29June

Notes:

1. Alldatesandtimesmaybechangedbythecompany.AnychangewillbepublishedonSENSandintheSouthAfricanpress.

2. LinkedunitholdersshouldnotethatastransactionsinOrionlinkedunitsaresettledintheelectronicsettlementsystemusedbyStrate,settlementoftradestakesplacefivebusinessdaysaftersuchtrade.Therefore,unitholderswhoacquireOrionlinkedunitsafterThursday,30April2015,willnotbeeligibletovoteatthegeneralmeetingofOriondebentureholdersorthegeneralmeetingofOrionshareholders.

3. AlltimesgiveninthiscirculararelocaltimesinSouthAfrica.

4. IfthegeneralmeetingofOriondebentureholdersand/orthegeneralmeetingofOrionshareholdersareadjournedorpostponed,formsofproxysubmittedfortheinitialgeneralmeetingofOriondebentureholdersand/orgeneralmeetingofOrionshareholders,asthecasemaybe,willremainvalidinrespectofanyadjournmentorpostponementofthegeneralmeetingofOriondebentureholdersand/orthegeneralmeetingofOrionshareholders,asthecasemaybe.

5. NodematerialisationoflinkedunitcertificatesmaytakeplaceafterFriday,19June2015.

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INTERPRETATIONS AND DEFINITIONS

Inthiscircularanditsannexures,unlessotherwisestatedorthecontextindicatesotherwise,thewordsandexpressionsinthefirstcolumnshallhavethemeaningsstatedoppositetheminthesecondcolumn,and wordsandexpressionsinthesingularshallincludethepluralandvice versa,wordsimportingnaturalpersonsshallincludejuristicpersonsandunincorporatedassociationsofpersonsandvice versa,andanyreferencetoonegendershallincludetheothergenders.

“board”or“directors” theboardofdirectorsofthecompany,assetoutonpage12hereto;“certificatedlinkedunits” linked units that have not yet been dematerialised, title to which is

representedbydocumentsoftitle;“certificatedlinkedunitholders” linkedunitholderswhoholdcertificatedlinkedunits;“CIPC” theCompaniesandIntellectualPropertyCommission;“circular”or“document” this bound circular to linked unitholders dated 13 April 2015,

incorporating the notices convening the general meeting of OriondebentureholdersandthegeneralmeetingofOrionshareholders;

“CommonMonetaryArea” SouthAfrica, theRepublicofNamibiaandtheKingdomsofLesothoandSwaziland;

“CompaniesAct”or“theAct” theCompaniesAct,2008(Act71of2008),asamended;“contributedtaxcapital” contributedtaxcapitalasdefinedinsection1oftheIncomeTaxAct;“court” acourtofcompetentjurisdictioninSouthAfrica;“CSDP” apartythatholdsincustodyandadministerssecuritiesoraninterest

insecuritiesandhasbeenacceptedasacentralsecuritiesdepositoryasaparticipantintermsofsection34oftheFinancialMarketsAct;

“debenture”or“Oriondebenture” avariablerateredeemabledebenturewithanominalvalueof1 centeach;

“debentureholders”or“Oriondebentureholders”

theregisteredholdersofOriondebentures;

“DebentureTrustDeed”or“OrionDebentureTrustDeed”

thetrustdeedinrespectofthedebenturesenteredintoon1July2003betweenthecompanyandthedebenture trustee,asamendedfromtimetotime,thethirdsupplementalwhichcancelledsupplementaloneandtwowhichwassignedonthe11January2006;

“DebentureTrustDeedamendment” theproposedamendmentstotheDebentureTrustDeedrequiredtobeeffectedinordertofacilitatetheimplementationofthetransaction,assetoutinparagraph5ofthiscircular;

“debenturetrustee”or“trusteefordebentureholders”

thepartnershipofGeorgeRossMunroc/o,fulldetailsofwhicharesetoutinthe“Corporateinformation”sectionofthiscircular;

“delinkedordinaryshares” anordinaryshareofthecompanyofnoparvaluewhichshareistobelisted under the new ISIN: ZAE000201695 in consequence ofthe implementationofthescheme;

“delinking” the delinking of each of the company’s linked units into a separateshareandadebenture,soastonolongerconstitutealinkedunit;

“dematerialisedlinkedunitholders” linkedunitholderswhoholddematerialisedlinkedunits;“dematerialisedlinkedunits” linkedunitswhichhavebeenincorporatedintotheStratesystem,title

towhichisnotrepresentedbylinkedunitcertificatesorotherphysicaldocumentsoftitle;

“dividend” adividendasdefinedinsection1oftheIncomeTaxAct;“documentsoftitle” linkedunitcertificates,certifiedtransferdeeds,balancereceiptsand

anyotherdocumentsoftitletolinkedunitsacceptabletotheboard;“ExchangeControlRegulations” theExchangeControlRegulations,promulgatedintermsofsection 9 of

theCurrencyandExchangesAct,1933(Act9of1933),asamended;

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“finalisationdate” the date on which all of the conditions precedent shall have beenfulfilledorwaived,asthecasemaybe;

“generalmeetingofOriondebenture holders”

thegeneralmeetingofOriondebentureholderstobeheldat10:00onThursday, 14 May 2015 at the registered office of the company, toconsider, and if deemed appropriate, to approve the resolutions asmorefullysetoutinthenoticeofgeneralmeetingtoOriondebentureholdersattachedtothecircular;

“generalmeetingofOrionshareholders”

the general meeting of Orion shareholders to be held at 10:30 onThursday, 14 May 2015 at the registered office of the company, toconsider, and if deemed appropriate, to approve the resolutions asmorefullysetoutinthenoticeofgeneralmeetingtoOrionshareholdersattachedtothecircular;

“generalmeetings” collectively, thegeneralmeetingofOriondebentureholdersandthegeneralmeetingofOrionshareholders;

“grossincome” grossincomeasdefinedinsection1oftheIncomeTaxAct;“group” thecompanyanditssubsidiaries;“IFRS” InternationalFinancialReportingStandards,asadaptedfromtimeto

timebytheboardoftheInternationalAccountingStandardsCommittee;“IncomeTaxAct” IncomeTaxAct,No.58of1962,asamended;“independentexpert”or“BDO” BDO Corporate Finance Proprietary Limited (Registration number

1983/002903/07),aprivatecompanydulyincorporatedinaccordancewiththelawsofSouthAfrica,andappointedtoprovideexternaladvicetotheboardinrelationtotheschemeandRegulation110(1);

“independentexpert’sreport” the report to the board prepared by the independent expert incompliancewithsection114(3)oftheCompaniesAct,whichreportissetoutinAnnexure1ofthiscircular;

“issueprice” thevalueattributedbythecompanytoadebentureupontheallotmentandissueofsuchdebenture,beingavaluenotlessthanthenominalvalueofthedebenture;

“JSE” JSELimited(Registrationnumber2005/022939/06),apubliccompanyduly incorporated in accordance with the laws of South Africa andlicensedasanexchangeundertheFinancialMarketsAct,No.19of2012,asamended;

“JSEListingsRequirements”or“ListingsRequirements”

theJSEListingsRequirements,asamendedfromtimetotime;

“lastpracticabledate” the last trading date before the practical finalisation of this circular,being8April2015;

“linkedunitholders”or“Orionlinkedunitholders”or“unitholders”

theregisteredholdersofOrionlinkedunits;

“linkedunits”or“Orionlinkedunits” Orion linkedunits listedon theJSE,eachcomprisingoneOrionparvalueshareindivisiblylinkedtooneOriondebenture;

“MoI”or“MemorandumofIncorporation”

theexistingmemorandumofincorporationofthecompany;

“MoIamendments” the proposed amendments to the company’s MoI required to beeffected consequent upon the approval and implementation ofthe schemeassetoutinparagraph6ofthiscircular;

“Orion”or“thecompany” Orion Real Estate Limited (Registration number 1997/021085/06),a companydulyregisteredandincorporatedinaccordancewiththecompanylawsofSouthAfrica,andlistedontheJSE;

“PLS” PropertyLoanStock;“qualifyingdistribution” a qualifying distribution as defined in section 25BB of the Income

Tax Act;“R”or“Rand” SouthAfricanRand,theofficialcurrencyofSouthAfrica;

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“Regulations”or“TakeoverRegulations”

the Companies Regulations, 2011, published in terms of theCompanies Act;

“REIT” Real Estate Investment Trust, as contemplated in the JSE ListingsRequirements;

“SARB” theSouthAfricanReserveBank;“SENS” the Stock Exchange News Service, the news service operated by

the JSE;“scheme”or“proposedscheme” the scheme of arrangement in terms of section 114(1)(c) of

the CompaniesAct,proposedbytheboardbetweenthecompanyandtheOrionlinkedunitholdersatthegeneralmeetings,intermsofwhichthe Orion debentures will be cancelled for no consideration, theDebentureTrustDeedwillbeterminatedandtheissuepriceofeachOrion debenture will be added to the contributed tax capital of theordinaryshares fromanaccountingperspective for thepurposesoffinancialreportinginaccordancewithIFRS,pursuanttotheprovisionsofsection25BB(8)oftheIncomeTaxAct;

“schemeimplementationrecorddate”

thedateonwhichlinkedunitholdersmustberecordedintheregisterinordertoparticipateintheschemeandreceivedelinkednoparvalueshares,whichdateisexpectedtobeonoraboutFriday,26June2015;

“schemeoperativedate” thebusinessdayonwhichtheschemeisimplemented,beingthefirstbusinessdayfollowingtheschemeimplementationrecorddate,whichisexpectedtobeMonday,29June2015;

“share”or“ordinaryshare”or“Orionordinaryshare”

an Orion ordinary share of a par value of 1 cent each, or an Orionordinaryshareofnoparvalue,asthecasemaybe;

“SouthAfrica” theRepublicofSouthAfrica;“Strate” the settlement and clearing system utilised by the JSE for all share

transactions concluded on the JSE, managed by Strate ProprietaryLimited (Registration number 1998/022242/06), a private companyduly incorporated in accordance with the laws of South Africa andregisteredintermsoftheFinancialMarketsAct;

“TaxationLawsAmendmentAct” TaxationLawsAmendmentAct,No.31of2013;“transaction” collectively:

– theDebentureTrustDeedamendment;– thedelinkingofeachOrionsharefromanOriondebenture,soasto

nolongerconstituteanOrionlinkedunit;– thescheme;and– theMoIamendments;

“transfersecretaries”or“Computershare”

Computershare Investor Services Proprietary Limited (Registrationnumber 2004/003647/07), a private company duly incorporated inaccordancewiththelawsofSouthAfricaandthetransfersecretarytoOrion, thedetailsofwhicharesetout in the“Corporate information”section;

“TRP” theTakeoverRegulationPanel,establishedintermsofsection196oftheCompaniesAct;

“uncertificatedsecuritiesregister” therecordofholdingsofdematerialisedlinkedunitholdersadministeredandmaintainedbyaCSDPandwhichformspartoftheregister;and

“votingrecorddate” thedate,andthetimeat,which:– adebentureholdermustberecordedintheregisterinordertovote

atthegeneralmeetingofOriondebentureholders;and– ashareholdermustberecordedintheregisterinordertovoteatthe

generalmeetingofOrionshareholders,being the close of business on the Friday of the week immediatelypreceding the date of the general meetings, which date is Friday,8 May2015.

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ORION REAL ESTATE LIMITED(IncorporatedintheRepublicofSouthAfrica)

(Registrationnumber1997/021085/06)Sharecode:ORE ISIN:ZAE000075651

(“Orion”or“thecompany”)

Directors

MrRSWilkinson(Chairman)*#

MrFGmeiner(Managing Director)MrDKMthembu*#

DrACGmeiner*MrCBNolte(Financial Director)* Non-executive # Independent

CIRCULAR TO LINKED UNITHOLDERS

1. INTRODUCTION

1.1 Orion’sapplication forREITstatuswasapprovedby theJSEandwillbeeffective from10April2015.TheJSEREITapprovalprocessincludedconfirmationsandundertakingsbytheboardthatthecompanywillcomplywithsection13oftheListingsRequirementsinorderforthecompanytosecureandretainitsREITstatus.

1.2 Theboardproposesconvertingthecompany’scurrentlinkedunitcapitalstructuretoanallsharestructuresoasto:

1.2.1 ensurecompliancewithsection13oftheListingsRequirements;

1.2.2 align the company’s capital structure with the internationally recognised all equity REITcapitalstructures;

1.2.3 simplifytheadministrationandaccountingtreatmentofthecompany’scapitalstructure;and

1.2.4 removeanycostsassociatedwithdebentures.

1.3 Theconversionofthecompany’scurrentlinkedunitcapitalstructuretoanallsharestructurewillbeimplementedby:

1.3.1 thedelinkingofeachordinarysharefromadebenturesoastonolongerconstitutealinkedunit;

1.3.2 thecancellationofeachdebenture,fornoconsideration;

1.3.3 thecapitalisationoftheissuepriceofeachdebenturetoOrion’sstatedcapitalattributabletotheordinarysharesissuedbythecompanyfromanaccountingperspectiveforpurposesoffinancialreportinginaccordancewithIFRSandtheincreaseofcontributedtaxcapitalof Orion attributable to the ordinary shares issued by Orion by the issue price of eachcancelleddebenture,ascontemplatedinsection25BB(8)oftheIncomeTaxAct;and

1.3.4 termination of the Debenture Trust Deed, without payment or other compensation todebentureholders,

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tobeeffectedbywayofaschemeofarrangementintermsofsection114(1)(c)oftheCompaniesAct,whichschemeisbeingproposedbytheboardbetweenthecompanyanditslinkedunitholdersandwhichschemeshall,subjecttothepassingoftherelevantresolutionsatthegeneralmeetings,takeeffecton29June2015andbebindingonallOrionlinkedunitholders.

1.4 In order to enable the scheme to be proposed by the company between the company and itsdebentureholders,certainamendments to theDebentureTrustDeedare tobeexecutedunderthenoticeofgeneralmeetingofOriondebentureholders,debentureholderswillberequestedtoauthoriseandapprovetheamendmentstotheDebentureTrustDeed.

1.5 Intermsofclause24.2.2ofthecompany’sDebentureTrustDeed,thepowertoagreetoanyvariationormodificationofanyoftherightsofthedebentureholders,subjecttotheconsentorconcurrenceofthecompany,mayonlybeexercisedbythedebentureholdersbyspecialresolution.

1.6 Accordingly,thedelinkingofeachordinarysharefromadebenturerequires:

1.6.1 thepassingofaspecialresolutionbydebentureholderstoapprovetheDebentureTrustDeedamendment;

1.6.2 thepassingofaspecialresolutionbydebentureholdersapprovingsuchdelinking;and

1.6.3 thepassingofaspecialresolutionbyshareholdersapprovingsuchdelinking.

1.7 Inaddition,debentureholderswillberequestedtoauthoriseandapprove,uponimplementationofthescheme,thesubsequentterminationoftheDebentureTrustDeed.

1.8 Thepassingoftherequisiteresolutionsauthorisingandapprovingthedelinkingandtheschemewillfurthernecessitatetheauthorisationandapprovalofshareholders(bywayofaspecialresolution)ofconsequentialamendmentstothecompany’sMoI.

1.9 Thepurposeofthiscircularistoprovidelinkedunitholderswiththenecessaryinformationtoenablethemtomakeaninformeddecisionastowhetherornottheyshouldvoteinfavouroftheresolutionsrequiredtoenable,giveeffecttoandimplementthetransaction,whichresolutionsaresetoutinthenoticeconveningthegeneralmeetingofOriondebentureholdersandthenoticeconveningthegeneralmeetingofOrionshareholders,asthecasemaybe,whichnoticesareattachedtoandformpartofthiscircular.

1.10 It isalsoproposedthatOrion’sauthorisedandissuedordinaryparvaluesharesbeconvertedtoauthorisedandissuedordinarysharesofnoparvalue.

1.11 Uponconclusionofthetransactioneveryonelinkedunitwillconvertintooneordinaryshareofnoparvalue.

1.12 Linkedunitholderswillcontinuetobeeligibletoreceivetheinterestonthedebenturesupto30June2015 inaccordancewith thecurrentDebentureTrustDeed.Uponconclusionof the transaction,OrionwillhaveashareonlycapitalstructurewhereshareholderswillreceivedividenddistributionsintermsofaREITstructure.

1.13 ItmustbenotedthatoneoftherequirementsforREITstatusisthattheCompanymustcomplywiththeListingsRequirements;notablyachievingthe20%publicshareholderspreadascontemplatedinsection4.28oftheListingsRequirements.Currently,OriondoesnotcomplyfullywiththeListingsRequirementsinthatithas564publicunitholders,holding5.63%oftheentireissuedsharecapitalofthecompany,whichislessthanthe20%ofthespreadrequirements.

Inthisregard,thecompany,togetherwiththeFranzGmeinerPropertyTrust,themajorshareholder,haveundertakentotheJSEtoreducetheshareholdingpercentageofthemajorshareholderthroughacapitalraisingviatheissueofnewsharesasfollows:

• By31December2015,theissueofapproximately63millionnewsharesinordertocomplywith50%oftherequiredspread.

• By30June2016,afurtherissueofapproximately63millionnewsharesinordertocomplywith50%oftheremainingbalanceoftherequiredspread.

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2. TAXATION OF REITS

2.1 TheintroductionofREITtaxlegislationinSouthAfrica(asprovidedforintermsofsection25BBoftheIncomeTaxAct):

2.1.1 isinlinewithinternationalbestpractice;

2.1.2 affordstaxcertaintytoREITstructures;

2.1.3 providesforataxstructurewhichallowsa“flowthrough”onapre-taxbasisoftheincomeofa REITthatisdistributedtoREITinvestors,onthebasismorefullydescribedinparagraph 2.2below;

2.1.4 providesthatshareholdersofaREITwillnotbeliableforsecuritiestransfertaxwhenbuyingorsellingREITsecurities;and

2.1.5 exemptsREITsfrompayingcapitalgainstaxonanyprofitfromthesaleofpropertyandREITsecurities.

2.2 Providedthatdistributionsmadebythecompanytoitsshareholdersmeettherequirementsofaqualifyingdistribution–whichwillbethecaseforsolongasatleast75%ofthecompany’sgrossincomeconstitutesrentalincome,asdefinedintheIncomeTaxAct–thedistributionswillconstitutequalifying distributions for the purposes of section 25BB of the Income Tax Act (“qualifying distributions”)withtheresultthat:

2.2.1 the amount of the qualifying distributions must be deducted from the company’s grossincome, with the effect that the company is not taxed on any income distributed to itsshareholders;

2.2.2 any qualifying distributions received by or accrued to shareholders (other thannon-residents) must be included in the gross income of those shareholders (as anon-exemptdividendintermsofsection10(1)(k)(aa)oftheIncomeTaxAct),withtheeffectthatthequalifyingdistributionsaretaxableasincomeinthehandsofshareholdersbutareexemptfromdividendstax;

2.2.3 any qualifying distributions received by or accrued to non-resident shareholders are not taxable as income and instead are treated as ordinary dividends that, from 1  January 2014, are subject to dividends tax. Qualifying distributions to non-residents are therefore subject to dividends tax. Until 31 December 2013 qualifying distributions to non-resident were not subject to dividends tax.

2.3 Furthermore,intermsofparagraph8ofsection25BBoftheIncomeTaxAct:

“If a REIT or controlled company, cancels the debenture part of a linked unit and capitalises the issue price of the debenture to stated capital for the purposes of financial reporting in accordance with IFRS:

(a) the cancellation of the debenture must be disregarded in determining the taxable income of the holder of the debenture and of the REIT or controlled company;

(b) expenditure incurred by the shareholder of the REIT or controlled company in respect of shares is deemed to be equal to the amount of the expenditure incurred in respect of the acquisition of that linked unit; and

(c) the issue price of the cancelled debenture must be added to the contributed tax capital of the class of shares that forms part of the linked unit.”

2.4 Theimplementationof theschemeis taxneutral to thecompanyand its linkedunitholders.ThecancellationofthedebenturesmustbedisregardedindeterminingtaxableincomeofthelinkedunitholdersaswellasOrion.TheexpenditureincurredbyeachshareholderofOrioninrespectoftheordinaryshareswillbedeemedtobeequaltotheamountoftheexpenditureincurredinrespectoftheacquisitionofthelinkedunits.TheissuepriceofeachcancelleddebenturewillbeaddedtothecontributedtaxcapitalattributabletotheordinarysharesofOrion.

2.5 Orionlinkedunitholderswhoarenon-residents,fortaxpurposes,maybesubjecttodifferenttaxationtreatments,andaccordinglyarecautionedtoconsulttheirprofessionaltaxadvisorsinthisregard.

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2.6 Iflinkedunitholdersareinanydoubtastothetaximplicationstothemofthereceiptofqualifyingdistributions from the company and/or tax implications applicable to the scheme generally,unitholdersshouldconsulttheirprofessionaltaxadvisors.

3. RATIONALE

3.1 Intermsoftherevisedsection13oftheJSEListingsRequirements(whichhavebeenamendedtocaterforREITlegislation),specificallyparagraph13.46(g),thetotalconsolidatedIFRSliabilitiesofaREITmaynotexceed60%ofitstotalconsolidatedIFRSassets.AstheListingsRequirementsmakesuseoftheIFRSdefinitionofaliabilityacompanyisrequiredtoincludeinsuchcalculationanydebenturesithasissued.Inthecompany’scasethiswouldrequirethecompanytoincludeitsvariablerate,subordinateddebentureswhichformpartofitslinkedunitcapitalstructure,includinganydebenturepremium,tobeincludedinthecalculationforthedeterminationofsuch60%threshold.

3.2 The JSE approved Orion’s status as a REIT provided that after 1 July 2015 the ratio of thecompany’s total consolidated liabilities to total consolidated assets must be based on the totalconsolidated liabilitiesasreflected in the IFRSfinancialstatementsandnoseparateadjustmentmaybemadeforanydebentures.Byconvertingitscapitalstructure,thecompanywillreducetheratioofitstotalconsolidatedliabilities(excludingsubordinateddebentures,asthesewillnolongerexistsubsequenttothepassingoftherequisiteresolutions)tototalconsolidatedassets,calculatedasatthelastpracticabledate,to45,67%andwilltherebyensurethatthecompany’sconsolidatedliabilitiesremainbelowtheaforementioned60%thresholdrequirement.Uponthedelinkingoflinkedunitsandcancellationofthedebentures,theratioofOriontotalconsolidatedIFRSliabilitiestototalconsolidatedIFRSassetsis39,08%.Thecapitalrestructurewillsimplifytheaccountingtreatment,asOrionwillnolongerhavealinkedunitcapitalstructure,butwillnowhaveashareonlystructure.

3.3 Pursuanttotheimplementationofthescheme,R65 650 283,beingthesumoftheissuepriceofthedebentureswillbecapitalisedtoOrion’sstatedcapitalaccountattributabletotheordinarysharesforaccountingpurposes.

3.4 Additionalbenefitsinconvertingthecompany’scurrentlinkedunitcapitalstructuretoanallsharestructureareto:

3.4.1 align the company’s capital structure with the internationally recognised all equity REITcapitalstructures;

3.4.2 simplifytheadministrationandaccountingtreatmentofthecompany’scapitalstructure;and

3.4.3 removeanypotentialcostsassociatedwithdebentures.

4. THE SCHEME

Intermsofsection114(1)(c)of theCompaniesAct, theboardproposesthescheme,assetout inthisparagraph4,betweenthecompanyanditslinkedunitholders.

4.1 The scheme

4.1.1 Pursuanttoandintermsofthescheme,whichwilltakeeffectontheschemeoperativedate,thecapitalstructureofthecompanywillberestructuredtocompriseexclusivelyofsharecapitalwiththenumberofdelinkedordinarysharesinissuebeingequaltothenumberoflinkedunitsinissuebeforethescheme.Thiswillbeachievedthroughthefollowingsteps:

4.1.1.1 amendingtheDebentureTrustDeedtoallowforthedelinkingandcancellation,fornoconsideration,ofthedebentures;

4.1.1.2 thecompanywilldelinktheordinarysharesandthedebenturesformingthelinkedunitsforthepurposeofthecapitalisationascontemplatedinclause4.1.1.4below;andthereafter

4.1.1.3 the company will cancel all of the debentures, without consideration or othercompensationbeingpayabletothedebentureholders;andthereafter

4.1.1.4 the capitalisation of the issue price of each debenture to the stated capitalattributable to theordinary shares issuedby thecompany fromanaccountingperspectiveforpurposesoffinancialreportinginaccordancewithIFRSandtheincrease of contributed tax capital of Orion attributable to the ordinary shares

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issuedbyOrionbytheissuepriceofeachcancelleddebenture,ascontemplatedinsection25BB(8)oftheIncomeTaxAct;andthereafter

4.1.1.5 terminatetheDebentureTrustDeed,withoutpaymentorothercompensationtodebentureholders.

4.1.2 Subjecttotheschemebecomingunconditional:

4.1.2.1 the linked unitholders (whether or not they voted in favour of the scheme orabstainedorrefrainedfromvoting)shallbedeemedtohaveauthorised:

4.1.2.1.1 amending the Debenture Trust Deed to allow for the delinking andcancellation,fornoconsideration,ofthedebentures;

4.1.2.1.2 the delinking of each ordinary share from a debenture so as to nolongerconstitutealinkedunit;

4.1.2.1.3 thecancellationofeachdebenture,fornoconsiderationoranyotherformofcompensation;

4.1.2.1.4 thecapitalisationoftheissuepriceofeachdebenturetoOrion’sstatedcapital attributable to the ordinary shares issued by the companyfromanaccountingperspectiveforpurposesoffinancialreportinginaccordancewithIFRSandthe increaseofcontributedtaxcapitalofOrionattributabletotheordinarysharesissuedbyOrionbytheissuepriceofeachcancelleddebenture,ascontemplatedinsection 25BB(8)oftheIncomeTaxAct;and

4.1.2.1.5 theterminationoftheDebentureTrustDeed,withoutpaymentorothercompensationtodebentureholders;

4.1.2.2 theschemewillbeimplementedandeachlinkedunitholderwillcontinuetoholdthe ordinary share previously held by the linked unitholder (as part of a linkedunit)butthedebenturetowhichtheordinarysharewaspreviouslylinkedwillbecancelled;

4.1.2.3 each debenture holder shall be deemed to have transferred to the company,witheffect from theschemeoperativedate,allof thedebenturesheldbysuchdebentureholderwithoutanyfurtheractorinstrumentbeingrequired,

subjecttotheremainingprovisionsofthisparagraph4.

4.1.3 Eachlinkedunitholderirrevocablyandinrem suamauthorisesthecompany,asprincipal,withthepowerofsubstitution,tocausethelinkedunitsheldbylinkedunitholdersontheschemeimplementationrecorddatetobereplacedwithdelinkedordinaryshares,andtodoallthingsandtakeallsuchstepsasthecompanyinitsdiscretionconsidersnecessarytoimplementthescheme.

4.1.4 Therightsoflinkedunitholderspursuanttotheschemewillberightsenforceablebylinkedunitholdersagainstthecompanyonly.

4.2 Conditions precedent

Theschemewillbesubjecttothefollowingconditionsprecedent:

4.2.1 theapprovaloftheschemebytherequisitemajorityoflinkedunitholders,ascontemplatedinsection115(2)oftheCompaniesAct;and

4.2.1.1 totheextentrequired,theapprovaloftheimplementationofsuchresolutionbytheCourtascontemplatedinsection115(3)(a)oftheCompaniesAct;and

4.2.1.2 if applicable, the company not treating the aforesaid resolution as a nullity, ascontemplatedinsection115(5)(b)oftheCompaniesAct;

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4.2.2 the requisite majority of debenture holders, at the general meeting of Orion debentureholders,approvingtherelevantresolutionsrequiredtoauthorise:

4.2.2.1 theamendmenttotheDebentureTrustDeed;

4.2.2.2 thedelinkingofeachofthecompany’sordinarysharesfromadebenturesoastonolongerconstitutealinkedunit;

4.2.2.3 cancellationofthedebentures;

4.2.2.4 capitalisationofthedebenturestoformpartofOrion’sstatedcapitalaccount;and

4.2.2.5 theterminationoftheDebentureTrustDeed,withoutpaymentorothercompensationtodebentureholders.

4.2.3 the requisite majority of shareholders, at the general meeting of Orion shareholders,approvingtherelevantresolutionsrequiredtoauthorise:

4.2.3.1 thedelinkingofeachofthecompany’sordinarysharesfromadebenturesoastonolongerconstitutealinkedunit;

4.2.3.2 cancellationofdebenturesandtheterminationoftheDebentureTrustDeed;

4.2.3.3 capitalisationofdebenturestoformpartofOrion’sstatedcapitalaccount;

4.2.3.4 conversionofauthorisedOrionparvaluesharestoOrionnoparvalueshares;

4.2.3.5 conversionofissuedOrionparvaluesharestoOrionnoparvalueshares;and

4.2.3.6 theMoIamendments,asdetailedinparagraph6below.

4.2.4 allapplicableregulatoryandstatutoryapprovalsareobtained.

Theconditionsprecedenthavebeeninsertedinthecompany’sfavour.Wheresuchconditionprecedentiscapableofbeingwaived,thecompanymaywaivesuchresolution,initssolediscretion,atanytimepriortothefulfilmentthereof.

4.3 Effects of the scheme

Theeffectoftheschemeisthatlinkedunitholderswillretainthesamesharesheldaspartofthelinkedunitbutthatthedebenturecomponentofthelinkedunitwillbecancelledandthecompany’sstatedcapitalwillbeincreasedbythesameamountastheissuepriceofthecancelleddebenture.Theonlymaterialdifferenceintheerstwhile linkedunitholder’spositiononimplementationoftheschemeistheabsenceofthedebenture.Theshareswillstillbeheldandtheinherentrightsofthesharesunchanged,savethattheshareswillbecapableofbeingtradedwithoutthedebentureandthattheshareswillbebackedbyalargerpoolofstatedcapital.

4.4 The statutory requirements of the scheme

4.4.1 Theschemeisbeingproposedbytheboardbetweenthecompanyanditslinkedunitholdersintermsofsection114(1)(c)oftheCompaniesActpursuanttowhichthecapitalstructureofthecompanywillberestructuredtocompriseexclusivelyofordinaryshareswiththenumberofdelinkedordinarysharesinissuebeingequaltothenumberoflinkedunitsinissuebeforethescheme.

4.4.2 Intermsofsection115oftheCompaniesAct,aschemeofarrangementbetweenacompanyanditsmembersmayonlybeimplementedif:

4.4.2.1 theschemeisapproved,intermsofsection115oftheCompaniesAct,byspecialresolution (requiring the support of at least 75% of the voting rights exercisedthereon at the general meeting of Orion debenture holders to be approved)adoptedbypersonsentitledtoexercisevotingrightsonsuchmatter(beingthosedebentureholdersrecordedintheregisteronthevotingrecorddate)atthegeneralmeetingofOriondebentureholdersandatwhichmeeting(inaccordancewiththeprovisionsoftheDebentureTrustDeed)sufficientpersonsarepresenttoexercise,inaggregate,atleast25%ofallthevotingrightsthatareentitledtobeexercisedonthatmatter;and

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4.4.2.2 theTRPhasissuedacompliancecertificateinrespectoftheschemeintermsofsection115(1)(b)oftheCompaniesAct.

4.4.3 Despitethespecialresolutionshavingbeenadoptedapprovingthescheme,thecompanymaynotproceedtoimplementtheschemewithouttheapprovalofthecourtif:

4.4.3.1 thespecialresolutionapprovingtheschemewasopposedbyatleast15%ofthevotingrightsthatwereexercisedonthatresolution,andwithinfivebusinessdaysafterthevote,anypersonwhovotedagainstthespecialresolutionrequiresthecompanytoseekcourtapproval;or

4.4.3.2 thecourt,onapplicationwithin10businessdaysafterthevotebyanypersonwhovoted against the special resolution approving the scheme, grants that personleavetoapplytoacourtforareviewofthescheme.

4.4.4 Ifthespecialresolutionsapprovingtheschemerequireapprovalbyacourtascontemplatedintermsofparagraph4.4.3.1above,thecompanymusteither:

4.4.4.1 within10businessdaysafterthevoteapplytothecourtforapproval,andbearthecostsofthatapplication;or

4.4.4.2 treatthespecialresolutionsasanullity.

4.4.5 Onapplicationcontemplatedinparagraph4.4.3.2,thecourtmaygrantleavetothatpersontoapplytocourtforareviewoftheschemeonlyifsatisfiedthattheapplicant:

4.4.5.1 isactingingoodfaith;

4.4.5.2 appearspreparedandabletosustaintheproceedings;and

4.4.5.3 has alleged facts which if proved would support an order in terms ofparagraph 4.4.6 below.

4.4.6 Onreviewingthespecialresolutionsthatarethesubjectofanapplicationcontemplatedinparagraph4.4.4.1,oraftergrantingleaveascontemplatedinparagraph4.4.5,thecourtmaysetasidethespecialresolutionsonlyif:

4.4.6.1 theresolutionsaremanifestlyunfairtothecompany’sdebentureholders;or

4.4.6.2 thevotewasmateriallytaintedbyconflictofinterest,inadequatedisclosure,failureto comply with the Companies Act, the memorandum of incorporation of thecompany(oranyapplicablerulesofthecompany)orothersignificantandmaterialproceduralirregularity.

4.4.7 Acopyofsection115oftheCompaniesActissetoutinAppendix Atotheindependentexpert’sreportandformspartofthiscircular.

4.5 Notice of the general meeting of Orion debenture holders

4.5.1 The notice convening the general meeting of Orion debenture holders (pink) is set outattachedonthiscircular.

4.5.2 TheformofproxyforthegeneralmeetingofOriondebentureholders(yellow) forusebycertificateddebentureholdersorown-namedematerialiseddebentureholdersrecordedintheregisteronthevotingrecorddatewhoareunabletoattendthegeneralmeetingofOriondebentureholdersandwishtoberepresentedthereatisattachedtoandformspartofthiscircular.TheinstructionsforthecompletionandlodgingoftheformofproxyforthegeneralmeetingofOriondebentureholders(yellow)arerecordedonsuchform.

4.5.3 Detailsoftheactionrequiredbydebentureholdersrecordedintheregisteronthevotingrecorddateissetoutonpage2ofthiscircular.

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4.6 The general meeting of the Orion debenture holders

4.6.1 Approvaloftheschemewill,inter alia,beputtoavoteatthegeneralmeetingoftheOriondebentureholderstobeheldat10:00onThursday,14May2015attheregisteredofficesofthecompany.

4.6.2 Eachcertificateddebentureholderanddematerialiseddebentureholderrecorded in theregisteronthevotingrecorddatewith“ownname”registrationcanattend,speakandvoteatthegeneralmeetingsinpersonorgiveaproxytosomeoneelse(includingthechairmanof the general meeting of Orion debenture holders) to represent him/her at the generalmeetingofOriondebentureholders.

4.6.3 The form of proxy for the general meeting of Orion debenture holders (yellow) must bereceivedby the transfersecretariesbynot later thanat10:00onTuesday,12May2015in respect of the general meeting of Orion debenture holders on at 10:00 on Thursday,14 May 2015.

4.6.4 Shouldadematerialiseddebentureholderrecordedintheregisteronthevotingrecorddatewhodoesnothave“ownnameregistration”:

4.6.4.1 wishtoattend,speakandvoteatthegeneralmeetingofOriondebentureholders,suchdebentureholdermustarrangewithhis/herCSDPorbroker toobtain thenecessaryletterofrepresentation;or

4.6.4.2 be unable to or not wish to attend the general meeting of Orion debentureholders but wish to vote at the general meeting of Orion debenture holders,he/sheshouldprovidehis/herCSDPorbrokerwiththeirvotinginstructioninthemannerstipulatedinthecustodyagreementgoverningtherelationshipbetweensuch debenture holder and their CSDP or broker. These instructions must beprovidedtotheCSDPorbrokerbythecut-offtimeanddateadvisedbytheCSDPorbrokerforinstructionsofthisnature.TheCSDPorbrokerwillthenprovidethetransfer secretarieswith the relevant formsofproxy in termsof such individualdematerialiseddebentureholders’instructions.

4.6.5 Dematerialiseddebentureholdersrecordedintheregisteronthevotingrecorddatewhodonothave“ownname”registrationwillnotbepermittedtoattend,speakorvoteatthegeneralmeetingofOriondebentureholderswithoutthenecessaryletterofrepresentationbeingissuedtothembytheirCSDPorbroker.

4.6.6 Ifyouareadebentureholderrecordedintheregisteronthevotingrecorddatewhowishesto address the general meeting of Orion debenture holders, then you will be given theopportunitytodoso.

4.7 General

4.7.1 TheJSEshallamendthelistingofthecompany’slinkedunitspursuanttotheschemeandthe subsequent listing of the delinked ordinary shares of the company with effect fromMonday,22June2015undertheJSEsharecode:OREandthenewISIN:ZAE000201695.

4.7.2 Thecompanymay:

4.7.2.1 before or at the general meeting of Orion debenture holders, agree to anyamendment,variationormodificationofthescheme;or

4.7.2.2 afterthegeneralmeetingofOriondebentureholders,agreetoanyamendment,variationormodificationwhichthecourtmaydeemfittoapproveorimpose,

providedthatnoamendment,variationormodificationmadeafterthegeneralmeetingofOriondebentureholdersmayhave theeffectofdiminishing the rightswhichwill accruetolinkedunitholdersintermsofthescheme.

4.7.3 Acertificatesignedbytwodirectorsofthecompanystatingthattheconditionsprecedentto the scheme have been fulfilled and/or waived and that the scheme is capable ofimplementation shall be binding on the company and the linked unitholders (includingfor theavoidanceofdoubt,thedebentureholders).

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4.7.4 The company will be entitled, and will have the authority on behalf of itself and eachdebentureholdertoauthoriseanypersonnominatedbythecompanytosignalldocumentsrequiredtobringtheschemeintoeffect.

4.8 Applicable laws

TheschemeshallbegovernedbythelawsofSouthAfricaonly.Eachdebentureholdershallbedeemedtohaveirrevocablysubmittedtothenon-exclusivejurisdictionofthecourtsofSouthAfricainrelationtoallmattersarisingoutoforinconnectionwiththescheme.

5. AMENDMENTS OF THE DEBENTURE TRUST DEED AND THE COMPANY’S MEMORANDUM OF INCORPORATION

5.1 Amendments of the Debenture Trust Deed

Inordertofacilitatethecancellationofthedebenturesintermsofthescheme,theboardproposesthattheOrionDebentureTrustDeedbeamendedbyinsertingthefollowingclauseafterclause30oftheOrionDebentureTrustDeed:

“31 DELINKING, CANCELLATION AND CAPITALISATION

Subject to a special resolution, the company may:

31.1 delink the ordinary shares and the debentures for the purpose of the cancellation and subsequent capitalisation as contemplated in 31.2 and 31.3;

31.2 subsequent to the delinking as contemplated in 31.1, cancel the debentures and terminate the deed, without payment to the debenture holders; and

31.3 subsequent to the delinking and cancellation as contemplated in 31.1 and 31.2, capitalise the issue price of the debentures from an accounting perspective for the purposes of financial reporting in accordance with IFRS to the company’s stated capital account attributable to the ordinary shares and to increase the contributed tax capital attributable to the ordinary shares by the issue price of the debentures.”

5.2 Amendments of the company’s memorandum of incorporation

Toenabletogiveeffecttothescheme,variousamendmentsarerequiredtobemadetotheMOI.TheproposedamendmentsaredetailedinAnnexure3hereto.

Shareholders will be requested to approve the special resolution necessary to authorise andapprove the MOI amendments at the general meeting of Orion shareholders. In order for suchspecial resolutions tobeadopted, the support of at least75%of the total votesexercisablebyshareholderspresentinpersonorrepresentedbyproxyisrequired.

6. CONVERSION TO NO PAR VALUE SHARES

The Board has also resolved that, in terms of regulation 31(6) of the Companies Act, the existingauthorisedandissuedordinarysharecapitalbeconvertedintoordinarysharesofnoparvalue.Followingtheconversion, thenopar value shares shall have the same rightsandprivilegesas thosecurrentlyattachingtotheparvalueshares.Asrequiredintermsoftheregulations31(7),theBoardhascausedaReporttobepreparedinrespectoftheconversionofthesharesfromparvaluesharestonoparvalueshares.TheReportisattachedtothisCircularmarkedasAnnexure6.

7. TERMINATION OF THE DEBENTURE TRUST DEED

Followingimplementationofthescheme,theDebentureTrustDeedwillbeterminatedwitheffectfromtheschemeoperativedate.ThedebenturetrusteehasconsentedtothecancellationfornoconsiderationandsubsequentcapitalisationofthedebenturesasbeinginthebestinterestofdebentureholdersandtotheterminationoftheDebentureTrustDeed.Acopyofthedebenturetrustee’sconsentletterisattachedasAnnexure2.

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8. GENERAL MEETINGS

8.1 AgeneralmeetingofOriondebentureholderswillbeheldat10:00onThursday,14May2015attheregisteredofficeofOrionat16thFloor,OrionHouse,49JorissenStreet,Braamfontein,forthepurpose of considering and, if deemed fit, passing, with or without modification the resolutionsrequiredtoapprovethetransactionincludingthescheme.AnoticethegeneralmeetingofOriondebentureholdersisattachedhereto,andformspartofthiscircular.

8.2 ThegeneralmeetingofOrionshareholderswillbeheldat the laterof10:30or10minutesafterthecompletionof thegeneralmeetingofOriondebentureholdersonThursday,14May2015attheregisteredofficeofOrionat16thFloor,OrionHouse,49JorissenStreet,Braamfontein,forthepurposeof consideringand, if deemed fit, passing,withorwithoutmodification, the resolutionsrequiredtoapprovethetransaction.AnoticeconveningthegeneralmeetingofOrionshareholdersisattachedhereto,andformspartofthiscircular.

9. PROCEDURE TO BE FOLLOWED BY LINKED UNITHOLDERS

9.1 Procedure to be followed by certificated linked unitholders

9.1.1 Subjecttotheschemebecomingunconditionalandthuscapableof implementation,it isnecessary to recall linkedunit certificates fromcertificated linkedunitholders inorder toreplacethemwithordinarysharecertificatesofnoparvalue.

9.1.2 To facilitate the timeous receipt by certificated linked unitholders of replacement sharecertificates,certificatedlinkedunitholderswhowishtoanticipatetheimplementationoftheschemeandwhodonotwishtodealintheirexistinglinkedunitspriortotheimplementationof the scheme, are requested to surrender their original certificates (copies will not beaccepted), under cover of the formof surrenderprovided in this circular, to the transfersecretaries, at the address set out in that form, prior to 12:00 on Friday, 26 June 2015.Certificated linkedunits surrenderedafter thisdatewill be replacedwithin fivebusinessdaysafterreceiptbythetransfersecretaries.

9.1.3 Linkedunitcertificatessoreceivedwillbeheldintrustbythetransfersecretariespendingthe scheme becoming unconditional. On or about Monday, 29 June 2015, the transfersecretarieswillreturnthenewordinarysharecertificates,whichreflectthedelinkedordinaryshare, to the registered holders thereof, by registered post, at the risk of such linkedunitholders.

9.1.4 OnFriday,12June2015,thefinalisationannouncementwillbereleasedonSENS.Shouldtheschemebeapprovedand implemented,certificated linkedunitholderswhohavenotalreadysurrenderedtheirlinkedunitcertificateswillberequiredtodosoundertheattachedformofsurrenderwhichshouldberetainedforthatpurposeasnofurtherformofsurrenderwillbecirculatedtolinkedunitholders.Additionalcopiesmayberequestedfromthetransfersecretaries.

9.1.5 Intheinstanceoflinkedunitholderswhoseregisteredaddressesinthecompany’sregisterareoutsideofthecommonmonetaryarea,orwheretherelevantcertificatesarerestrictivelyendorsed in terms of the South African Exchange Control Regulations, the followingwill apply:

9.1.5.1 for non-residents who are emigrants from the common monetary area, thereplacement share certificate will be sent to the linked unitholders’ authoriseddealerinforeignexchangeinSouthAfricacontrollingtheirblockedassets;and

9.1.5.2 forallothernon-residents, the replacementsharecertificatewillbe restrictivelyendorsed “non-resident” in terms of the South African Exchange ControlRegulations.

9.2 Procedure to be followed by dematerialised linked unitholders

LinkedunitholderswillhavetheiraccountsattheirCSDPorbrokerautomaticallyupdatedontheschemeoperativedateandneednotdoanything.

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10. THE COMPANY’S SHARE CAPITAL

Thecompany’slinkedunitcapitalstructurebeforeandsharecapitalstructureaftertheproposedschemeissetoutbelow.

BEFORE R

Share capitalAuthorised2 000 000000ordinarysharesof1centeach 20000000Issued630 698688ordinarysharesof1centeach 63069873688866treasuryshares (36889)Sharepremiumattheendoftheyear 67965428

Subtotal 74 235 526

Debenture capitalIssued630 698 688debenturesof1centeach 63069873 688 866treasurydebentures (36889)Debenturepremium 49 325 593Treasurydebenturepremium (621294)DebentureReserve 10 675 886

Subtotal 65 650 283

Total 139 885 809

AFTERAuthorised2000000000ordinarysharesofnoparvalue 0Issued630 698688ordinarysharesofnoparvalue 139 9226983 688 866treasuryshares (36889)

Total 139 855 809

11. FINANCIAL INFORMATION

11.1 Pro forma financial information

11.1.1 Inaccordancewiththeprovisionsofparagraph8ofsection25BBoftheIncomeTaxAct,theissuepriceofeachdebenturewillbecapitalisedtothecompany’sstatedcapitalattributabletotheordinarysharesfromanaccountingperspectiveforpurposesoffinancialreportinginaccordancewithIFRSandtheincreaseofthecontributedtaxcapitalofOrionattributabletotheordinarysharesissuedbythecompanybytheissuepriceofeachcancelleddebenture,ascontemplatedinsection25BB(8)oftheIncomeTaxAct.TheeffectonOrion’sstatementoffinancialpositionisthereforelimitedtoareclassificationofthedebenturebalanceanddebenture reserve tostatedcapitalanda reclassificationof theaccumulateddebenturepremium amortisation, previously transferred to a non-distributable reserve, from saidnon-distributablereservetostatedcapital.

11.1.2 WithregardsOrion’sstatementofcomprehensiveincome,theschemewillhavetheeffect,inthefirstinstance,ofreducingtheamountdisclosedasinterestpaid.Anamountequivalenttothereductionininterestpaidwillinsteadbereflectedasadividendpaidtoshareholdersthroughthecompany’sstatementofchangesinequity.Inthesecondinstance,the remainingdebenturepremiumwillnolongerbeamortised.Theamortisationofdebenturepremiumwasnothistoricallytreatedasacomponentofdistributableearnings.Theschemewillthereforehavenoeffectonthetotaldistributionpaidtolinkedunitholders/shareholders.

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Financialeffectsareillustratedafollows:

Thepro forma financial informationhasbeenprepared for illustrativepurposesonlyandbecauseofitsnature,maynotfairlypresentOrion’sfinancialposition,changesinequity,andresultsofoperationsorcashflowsafterthetransaction.Thepro formafinancialeffectsarepresentedinaccordancewiththeJSEListingsRequirements,theGuideonPro FormaFinancialInformationissuedbySAICA,ISAE3420andthemeasurementandrecognitionrequirementsofIFRS.Thepro formafinancialinformationofOrionisbasedontherestatedfinancialresultsfortheyearended30June2014.Thepro formafinancialinformationhavebeenpreparedusingaccountingpoliciesthatcomplywithIFRSandthatareconsistentwiththoseappliedintheauditedfinancialstatementsofOrionfortheyearended30June2014.

Ithasbeenassumedthatthetransactionwaseffectiveat1July2013,beingthebeginningofOrion’sfinancialperiodforthepurposesofbasicearningsperlinkedunitandheadlineearnings per linked unit and on 30 June 2014 for the purposes of the net asset value per linked unit.ThedirectorsofOrionare responsible for the compilation, contentsandpreparationofthepro formafinancialinformation.

Before After

Basicearningsperlinkedunit(cents) 6.37 6.75Dilutedearningsperlinkedunit(cents) 6.37 6.75Headlineearningsperlinkedunit(cents) 1.44 1.76Dilutedheadlineearningsperlinkedunit(cents) 1.44 1.76Netassetvalueperlinkedunitatyear-end(cents) 81.16 81.46

11.2 Historical financial information

11.2.1 Whilsttheschemeconstitutesanaffectedtransactionandthusfallswithinthedefinitionofan“offer”intermsofsection117(1)(f)oftheCompaniesAct,noofferconsiderationwillbepayabletodebentureholderspursuanttotheimplementationoftheschemeinasmuchastheissuepriceofeachdebenturewillbecapitalisedtothestatedcapitalattributabletotheordinaryshares issuedby thecompany fromanaccountingperspective forpurposesoffinancialreportinginaccordancewithIFRSandascontemplatedinsection25BB(8)oftheIncomeTaxAct.

11.2.2 Theauditedfinancialstatementsofthecompanyfortheyearended30June2012andtherestatedauditedfinancialstatementsofthecompanyfortheyearsended30June2014and30June2013areavailableat thecompany’swebsitewww.oriongroup.co.za. Inaddition,assetoutinparagraph25below,therestatedauditedfinancialstatementsandtheauditedfinancialstatementsofthecompanyfortheyearsended30June2014,30June2013and30June2012arealsoavailableforinspectionduringnormalofficehoursonbusinessdaysfromthedateofissueofthiscircularuntilthedateofthegeneralmeetingofOriondebentureholdersandgeneralmeetingofOrionshareholders,attheregisteredofficeofthecompanyat16thFloor,OrionHouse,49JorissenStreet,Braamfontein.

11.2.3 Application for relaxation of regulations 90(6)(e) – (g) and 106(6)(d) of the Regulations

ApplicationwasmadebytheCompanytotheTRPfortherelaxationofthestrictrequirementsofregulations90(6)(e)–(g)and106(6)(d)oftheRegulations.

11.2.4 Regulation 90(6)(e) – (g)

11.2.4.1 Regulation90(6)(e)–(g)requiresthatthereportoftheindependentexpertincludethefollowing:

• astatementof thevaluationapproachadopted, themethodsemployedandallmaterialassumptionsunderlyingthevaluationapproachandmethodology;

• arangeoffinalvaluationvaluesattributabletotherelevantsecuritiesorassetsandamostlikelyvalueusedasthecorenumberforpurposesoftheexpressionoftheopinion;and

• any other valuation or pricing approaches and methodologies used incorroboratingtheexpressionoftheopinion.

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11.2.4.2 The TRP granted the company a dispensation against compliance with theRegulationconcerned,since,inherentinthenatureofthetransaction,thereisnoofferconsiderationagainstwhichthevalueofOrionlinkedunitscanbecompared.Accordingly,arangeofvaluationsforOrionlinkedunitshasnotbeensetout,asitisnotpossibletoprovidesuchavaluationrangeforthelinkedunits.

11.3 Regulation 106(6)(d)

Regulation 106(6)(d) requires a company to include, in a circular to shareholders, full historicalfinancialstatementsoftheofferorforthelastthreefinancialperiods.Orionhassoughtadispensation,fromtheTRP,toincludeinthecircular,anextractofthehistoricalfinancialstatementsinacondensedformatforthefinancialyears2012,2013and2014.TheTRPhasgrantedthedispensationonthegroundsthat:

11.3.1 therewillbenoadverseeffectonOriondebentureholders,sinceOriondebentureholderswill,posttheimplementationofthescheme,holdthesameeconomicinterestinthecompanyastheydidbeforetheimplementationofthescheme;and

11.3.2 therewillbenoprejudicetoanyOrionshareholder,sincethereisnoconsiderationpayableto Orion shareholders in respect of the scheme and shareholders rights and economicinterestinthecompanywillnot,inanyway,beaffectedbythescheme.

11.4 An extract of the historical financial statements in a condensed format, for the previous threefinancialyears,issetoutinAnnexure7ofthecircular.

11.5 Trading history

Thepriceandtradinghistoryofthecompany’slinkedunitsontheJSEissetoutinAnnexure4ofthecircular.

12. DIRECTORS’ INFORMATION

Thenames,occupationsandrelevantbusinessexperienceofthedirectorsandexecutivemanagementofthecompanyaresetoutinAnnexure5ofthiscircular.

13. INTERESTS OF THE DIRECTORS

13.1 Asatthelastpracticabledate,thedirectorsofthecompanyheldthefollowingOrionlinkedunits:

Director

Direct beneficial

holdingIndirect

beneficial holdingTotal linked

units held% of issued linked units

FGmeiner 2321188 588737355 591 058543 93.71ACGmeiner 2 056471 2 056471 0.33RSWilkinson 250000 250000 0.04FMViruly* 50000 50000 0.01

Total 4 677 659 588 737 355 593 415 014 94.09

* Resignedwitheffectfrom18March2015.

13.2 TherehasbeennodealinginOrionlinkedunitsbyOrion’sdirectorsortheirassociatesbetween31 December2014andlastpracticabledate.

13.3 Theemploymentcontractsofthedirectorsofthecompanycontaintermsandconditionsthatarestandard for these types of agreements and are terminable on one month written notice. Thedirectorsareremuneratedduringtheirnoticeperiod.Saveforthenormalchangesinremunerationeffected in theordinarycourse, theemploymentcontractsof thedirectorsof thecompanyhavenotbeenamendedwithinthesix-monthperiodpriortothelastpracticaldate.Theremunerationofdirectorswillnotbeaffectedbythescheme.

13.4 Noemploymentcontractshavebeenenteredintobetweenthecompanyandanyofitsdirectorsorproposeddirectorswithinthesix-monthperiodpriortothelastpracticabledate.

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14. MANAGEMENT

It is not envisaged that the company’s existing board will be restructured upon implementation oftheschemeandthatthedirectorsofthecompanyshallcontinueinoffice.It isnotanticipatedthattheemolumentsofthecurrentdirectorsofthecompanywillbeaffectedbythescheme.

15. AGREEMENTS IN RELATION TO THE SCHEME

15.1 Noagreementexistsbetweenthecompanyandanylinkedunitholderswhichcouldbeconsideredmaterialtothedecisionregardingtheschemetobetakenbydebentureholders.

15.2 No agreements have been entered into between the company and any of the directors of thecompanyorlinkedunitholderinrelationtothescheme.

16. MAJOR LINKED UNITHOLDERS

As at the last practicable date, the following linked unitholders beneficially held 5% or more of thecompany’sissuedlinkedunitcapital:

Linked unitholderNumber of linked

units heldPercentage of

linked units (%)

FranzGmeinerPropertyTrust 586 810 961 93.04

Total 586 810 961 93.04

17. RELATED AND CONCERT PARTIES

17.1 Therearenorelatedpartyrelationshipsthatariseasaresultofthescheme.

17.2 Noagreementexistsbetweenthecompanyandanyofthepartiesmentionedinparagraphs(i)to(iii)ofRegulation106(4)(e)oftheTakeoverRegulations.

18. MATERIAL CHANGES

Orion announced on SENS on 14 January 2015 the details regarding the disposal of the MountainViewShoppingCentreasagoingconcernbyOrionPropertyHoldingsTrust,theseller,toMilprops365(Pty)Limited,thepurchaser,foraconsiderationofR27750000.00.ThiswasaCategory2transactionintermsoftheListingsRequirements.Otherthanasstatedabovetherearenomaterialchangestothefinancial position or trading position of the company and its subsidiaries since the publication of thecompany’sfinancialstatementsfortheyearended30June2014.

Theboarddoesnotbelievethatthebusinessofthecompanywillbeaffectedbytheschemeandtherewillbenomaterialchangestothebusinessofthecompanypursuanttotheimplementationofthescheme.

19. LITIGATION STATEMENTS

AnamountofR2,6millionisunderdisputeregardingtheSelborneHotelacquisition.Thematterremainsunderreview.

TheBodyCorporateofErf195ElmaParkhas initiated liquidationproceedings forarrear levies.Thisisbeingcontestedasthecompanyquestionthe leviesraisedaswellastheexpenseallocationbasisused.ThisamounttoR4635508,13.Thecompanyisintheprocessoflaunchingacounterapplication;however,arecurrentlyinnegotiationsinanattempttosettlethematterwiththeBodyCorporate.

Otherthanthestatementsabove,therearenootherlegalorarbitrationproceedingsagainstthecompanyoritssubsidiaries(includinganysuchproceedingsthatarependingorthreatened)ofwhichthedirectorsare aware, which may have or have had during the 12 months preceding the date of this circular,amaterialeffectoftheOriongroup’sfinancialposition.

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20. SECTION 114 REPORT

20.1 The board has appointed the independent expert (which meets the requirements set out insection 114(2)oftheCompaniesAct)toadviseitontheproposedschemeandtocompileareportin termsofsection114of theCompaniesAct to theboardconcerningthescheme.Asstated inparagraph11above,TRPhasgranteddispensationnottoprovidevaluationinformationasrequiredbyRegulations90(6)(e)asthereisnoofferconsiderationagainstwhichthevaluetheOrionlinkedunitscanbecompared.Theindependentexpert,havinganalysedtheeffectsofthescheme,hasconcludedthattherewillbenoadverseeffectsonOrionlinkedunitholders.

20.2 Theindependentexperthaspreparedareporttotheboardincompliancewithsection114(3)oftheCompaniesAct,whichreportissetoutinAnnexure1ofthecircular.

21. VIEWS OF THE BOARD

21.1 Noneofthedirectorshaveanyconflictofinterestsinrelationtotheschemeandalldirectorsareabletomakeimpartialdecisionsinrelationtothescheme.Accordingly,alldirectorsareconsideredtobe“independent”(asdefinedunderRegulation81oftheTakeoverRegulations).

21.2 The board, having considered the terms and conditions of the scheme, and the opinion of theindependentexpert, is infavourof theschemeandthetransactionandrecommendsthat linkedunitholdersvoteinfavouroftheresolutionssetoutinthenoticeofgeneralmeetingofOriondebentureholdersandthenoticeofgeneralmeetingofOrionshareholders, to implement theschemeandthe transaction.

21.3 ThedirectorsofthecompanywhoholdlinkedunitsintendtovoteinfavouroftheresolutionssetoutinthenoticeofgeneralmeetingofOriondebentureholdersandthenoticeofthegeneralmeetingofOrionshareholders,toimplementtheschemeandthetransaction.

22. IRREVOCABLE UNDERTAKING

MrFranzGmeinerwhoindirectlyholds93.04%ofthelinkedunitshasirrevocablyundertakentovoteinfavouroftheresolutionssetoutinthenoticeofgeneralmeetingofOriondebentureholdersandthenoticeofthegeneralmeetingofOrionshareholders.

23. DIRECTORS’ RESPONSIBILITY STATEMENT

Thedirectors,whosenamesaregivenonpage12of thiscircular,collectivelyand individuallyacceptfullresponsibilityfortheaccuracyoftheinformationgivenandcertifythattothebestoftheirknowledgeandbelief, the informationcontained in thiscircular is true, thereareno facts thathavebeenomittedwhichwouldmakeanystatementfalseormisleading,andthatallreasonableenquiriestoascertainsuchfactshavebeenmadeandthatthecircularcontainsallinformationrequiredbylawandtheJSEListingsRequirements.

24. CONSENTS

EachoftheadvisorsaslistedintheCorporateInformationsection,haveconsentedinwritingtoactinthecapacitiesstatedandtotheirnamesandreports,asapplicableinthiscircular,intheformandcontextinwhichtheyappearandhavenotwithdrawntheirconsentpriortothepublicationofthiscircular.

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25. COSTS

Thefollowingexpensesandprovisionsareexpected,orhavebeenprovidedfororpaidbythecompanyinconnectionwiththetransaction.Allthefeespayabletothepartiesbelowareexclusiveofvalueaddedtax:

Description R

CorporateadvisoryfeepayabletoDPCohenConsultingProprietaryLimited 350000LeadTransactionSponsorfeepayabletoDeloitte&ToucheSponsorServicesProprietaryLimited 300000Attorney’sfeespayabletoTugendhaftWapnickBanchettiandPartners 450000IndependentexpertfeespayabletoBDO 70000TRPdocumentationfees 75000JSEdocumentationfees 25246Printing,publicationandothercosts 57300

Total 1 327 546

26. DOCUMENTS AVAILABLE FOR INSPECTION

Thedocumentslistedbelowwillbeavailableforinspectionduringnormalofficehoursonbusinessdaysfromthedateof issueofthiscircularuntil thedateofthegeneralmeetingofOriondebentureholdersandgeneralmeetingofOrionshareholders,attheregisteredofficeofthecompanyat16thFloor,OrionHouse,49JorissenStreet,Braamfontein.

• theMoIofthecompanyanditssubsidiaries;

• theDebentureTrustDeed;

• thereportoftheindependentexpertassetoutinAnnexure1;

• consentlettersreferredtoinparagraph24;

• the letter issued by the TRP approving this circular in terms of Regulation 117 of the TakeoverRegulations;

• TRPdispensationletter;

• irrevocableletterofundertakingreferredtoinparagraph22;

• unauditedinterimresultsforthesixmonthsended31December2014;

• theauditedfinancialstatementsofthecompanyfortheyears30June2014,30June2013(restated)and30June2012;and

• asignedcopyofthiscircular.

ForandonbehalfofOrionRealEstateLimited

Signedonbehalfoftheboardon7April2015

Franz Gmeiner

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ANNEXURE 1

OPINION OF THE INDEPENDENT EXPERT

TheDirectorsOrionRealEstateLimited16thFloorOrionHouse49JorissenStreetBraamfonteinJohannesburg,2000

8April2015

DearSirs

REPORT OF THE INDEPENDENT PROFESSIONAL EXPERT TO ORION REAL ESTATE LIMITED REGARDING THE DELINKING AND CANCELLATION OF THE ORION DEBENTURES

INTRODUCTION

OrionRealEstateLimited’s(“Orion”orthe“Company”)applicationforrealestateinvestmenttrust(“REIT”)statuswasapprovedbytheJSELimited(“JSE”)andwillbeeffectiveonorabout10April2015.

PursuanttotherecentconversionofOrionintoaREITandforthepurposesofconvertingOrion’scombinedunitcapitalstructureintoanequity-onlystructure,theboardofdirectorsofOrion(“Board”or“Directors”)isproposingthedelinkingandcancellationofunsecured,variableratedebenturesissuedbyOrion,intermsoftheOrionDebentureTrustDeed,withanominalvalueof1centeach(the“OrionDebentures”)bywayofascheme of arrangement in terms of section 114(1)(c) of the Companies Act, 71 of 2008, as amended(the “CompaniesAct”),tobeproposedbytheBoardbetweenOrionandOrionUnitholders,intermsofwhich,theOrionDebentureswillbecancelled fornoconsiderationand theOrionDebentureTrustDeedwillbeterminated (the “Scheme”). The Scheme is part of a Capital Restructure which comprises, inter alia,the conversionoftheOrionordinaryshareshavingaparvalueof1centintheissuedsharecapitalofOrionintoOrionordinarysharesofnoparvalue(anOrionordinaryshareofaparvalueof1centeach,oranOrionordinary shareofnopar value,as thecasemaybeare “OrionShares”) (the “OrionShareConversion”).The CapitalRestructurecomprisesthefollowingsteps:

• thedelinkingoftheOrionSharesfromtheOrionDebenturessoastonolongerconstitutealinkedunit;• thecancellationofeachOrionDebenturefornoconsideration;• thecapitalisationoftheissuepriceofeachOrionDebenturetoOrion’ssharecapital;• the termination of the Orion Debenture Trust Deed without payment or other compensation to Orion

Debentureholders;• theOrionShareConversion;and• theamendmentofOrion’sMemorandumofIncorporation(“MOI”)toreflectthechangeinOrion’scapital

structure.

Copiesofsections115and164oftheCompaniesActareincludedasanAppendixA.

FAIR AND REASONABLE OPINION REQUIRED

TheSchemeisanaffectedtransactionasdefinedinsection117(1)(c)(iii)oftheCompaniesAct.Intermsofsection 114(2) of the Companies Act, the directors of Orion are required to obtain independent externaladvice as to how the Scheme affects holders of relevant securities in Orion (the “Fair and ReasonableOpinion”).

BDO Corporate Finance has been appointed by the Orion as the independent expert to evaluate theconsequencesoftheSchemeandassesstheeffectoftheSchemeonthevalueofOrionsecuritiesandontherightsandinterestsoftheholdersofOrionsecurities.

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RESPONSIBILITY

CompliancewiththeCompaniesActistheresponsibilityoftheOrion.OurresponsibilityistoreportonthefairnessandreasonablenessofthetermsoftheScheme.

EXPLANATION AS TO HOW THE TERMS “FAIR” AND “REASONABLE” APPLY IN THE CONTEXT OF THE SCHEME

The“fairness”ofa transaction isbasedonquantitative issues.Atransactionmaybesaidtobefair if thebenefits,asaresultofthetransaction,areequaltoorgreaterthanthevalueceded.

OrionSharesareirrevocablylinkedtoOrionDebenturesintheratioofoneOrionSharetooneOrionDebenture,tradingaslinkedunitsontheJSE.FollowingtheimplementationoftheScheme,OrionLinkedUnitholderswillceasetoholdOrionDebenturesandwillbeholdersofOrionSharesonly.TheSchemewouldbeconsideredtobefairifthefairvalueofOrionSharesfollowingtheimplementationoftheSchemeisequaltoorgreaterthanthefairvalueofOrionLinkedUnits.

Anassessmentofreasonablenessisgenerallybasedonfactorsotherthanquantitativeconsiderations.

DETAILS AND SOURCES OF INFORMATION

Inarrivingatouropinionwehaverelieduponthefollowingprincipalsourcesofinformation:

• TheannualreportsofOrionfortheyearsended30June2013and2014;• CondensedunauditedconsolidatedinterimresultsofOrionforthesixmonthsended31December2014• ThetermsandconditionsoftheSchemeandCapitalRestructure;• Orion’sMOI;• The Orion Debenture Trust Deed as read with the various deeds of amendments and supplemental

debenturetrustdeeds,whichgovernsthecreationandissueoftheOrionDebentures;• Discussions with Orion directors and management on prevailing market, economic, legal and other

conditionswhichmayaffectunderlyingvalue.

Theinformationabovewassecuredfrom:

• ExecutivedirectorsandmanagementofOrionandtheiradvisers;and• Thirdpartysources,includinginformationrelatedtopubliclyavailableeconomic,marketandotherdata

whichweconsideredapplicableto,orpotentiallyinfluencingOrion.

EFFECTS OF THE SCHEME

OrionisexpectedtobegrantedREITstatusbytheJSEeffectiveonorabout10April2015.By1June2015,and in terms of the revised section 13 Listings Requirements, the total consolidated liabilities of a REIT,measuredintermsofInternationalFinancialReportingStandards(“IFRS”)maynotexceed60%ofitstotalconsolidatedassets,measuredintermsofIFRS.WhilsttheOrionDebenturesareincludedasaliabilityintermsofthiscalculation,thisisnotatruereflectionofthirdpartydebtowedbytheCompanyastheOrionDebenturesareeffectivelytreatedasequitybytheCompany.Orion,bycancellingtheOrionDebentures,willreducetheratioof its totalconsolidatedIFRS liabilities(includingOrionDebentures) to totalconsolidatedIFRSassetsasat31December2014from45.7%to39.2%.

ThetypeandclassofsecurityholderaffectedbythetransactionareOrionUnitholderswhocurrentlyhold630 698688OrionDebentures,linkedto630698688OrionShares,forming630698688OrionLinkedUnits.

TheeffectoftheSchemewillbethatthedebenturecomponentoftheOrionLinkedUnitwillbecancelledandthevalueoftheOrionDebentureswillbecapitalisedtoformpartoftheCompany’sstatedcapital.

30

ThematerialinterestsofthedirectorsofOrionaresetoutbelow:

Director

Direct beneficial

holding

Indirectbeneficial

holdingTotal linked

units held% of issued linked units

FGmeiner 2321188 588737355 591 058543 93.71ACGmeiner 2 056 471 2 056471 0.33RSWilkinson 250000 250000 0.04FMViruly(resignedfrom18March2015) 50000 50000 0.01

Total 4 677 659 588 737 355 593 415 014 94.09

TheeffectoftheSchemeonthoseinterestsandpersonsaresetoutinsection10oftheCircular.

HavinganalysedtheeffectsoftheScheme,wehaveconcludedthattherewillbenoadverseeffectsonOrionDebentureHoldersasOrionDebentureHolderswillholdthesameeconomicinterestinOrionbeforeandaftertheScheme.TheonlymaterialdifferenceisthattheformerOrionUnitholder’swillholdOrionSharesonlywithnolinkedOrionDebentures.

AsthereisnoofferconsiderationagainstwhichthevalueoftheOrionLinkedUnitscanbecomparedwehavenot setouta rangeof valuations forOrionLinkedUnitsassuchavaluation range isnot relevant for thepurposesoftheScheme.

LIMITING CONDITIONS

Thisopinion isprovidedto theOrionUnitholders inconnectionwithandfor thepurposesof theScheme.The opiniondoesnotpurporttocaterforeachindividualOrionUnitholder’sperspective,butratherthatofthegeneralbodyofOrionUnitholders.

Individual Orion Unitholders’ decisions regarding the Scheme may be influenced by such shareholders’particularcircumstancesandaccordinglyindividualshareholdersshouldconsultanindependentadviserifinanydoubtastothemeritsorotherwiseoftheScheme.

Wehaverelieduponandassumedtheaccuracyoftheinformationprovidedtousinderivingouropinion.Wherepractical,wehavecorroboratedthereasonablenessoftheinformationprovidedtousforthepurposeof our opinion, whether in writing or obtained in discussion with management, by reference to publiclyavailableorindependentlyobtainedinformation.Whileourworkhasinvolvedananalysisof, inter alia,theannualfinancialstatements,andotherinformationprovidedtous,ourengagementdoesnotconstituteanauditconductedinaccordancewithgenerallyacceptedauditingstandards.

WehavealsoassumedthattheSchemewillhavethelegalconsequencesdescribedindiscussionswith,andmaterials furnished to us by representatives and advisers of Orion and we express no opinion on suchconsequences.Ouropinionisbasedoncurrenteconomic,regulatoryandmarketaswellasotherconditions.Subsequent developments may affect the opinion, and we are under no obligation to update, review orreaffirmouropinionbasedonsuchdevelopments.

Ouropinionisbasedoncurrenteconomic,regulatoryandmarketaswellasotherconditions.Subsequentdevelopmentsmayaffecttheopinion,andweareundernoobligationtoupdate,revieworreaffirmouropinionbasedonsuchdevelopments.

INDEPENDENCE, COMPETENCE AND FEES

WeconfirmthatBDOCorporateFinancemeettherequirementsassetoutinsection114(2)oftheCompaniesAct.Wealsoconfirm thatwehave thenecessaryqualificationsandcompetence toprovide theFairandReasonableOpinionontheScheme.

Furthermore,weconfirmthatourprofessionalfeesofR70000,payableincash,arenotcontingentuponthesuccessoftheproposedScheme.

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OPINION

BDOCorporateFinancehasconsideredthetermsandconditionsoftheSchemeand,basedonandsubjectto theconditionssetoutherein, isof theopinion that the termsandconditionsof theScheme,basedonquantitativeconsiderations,arefairtotheOrionUnitholders.

Basedonqualitativefactors,weareoftheopinionthatthetermsandconditionsoftheSchemearereasonablefromtheperspectiveoftheOrionUnitholders.

ItisourunderstandingthatfollowingtheScheme,thereisnoanticipatedmaterialchangeinOrion’businessmodel.

Ouropinionisnecessarilybasedupontheinformationavailabletousupto8April2015,includinginrespectof the financial information as well as other conditions and circumstances existing and disclosed to us.We haveassumedthatallconditionsprecedent, includinganymaterialregulatoryandotherapprovalsorconsentsrequiredinconnectionwiththeSchemehavebeenfulfilledorobtained.

Accordingly,itshouldbeunderstoodthatsubsequentdevelopmentsmayaffectthisopinion,whichweareundernoobligationtoupdate,reviseorreaffirm.

Yoursfaithfully

N Lazanakis Director

BDO Corporate Finance (Pty) Limited22WellingtonRoadParktown2193

32

APPENDIX A

115. Required approval for transactions contemplated in Part

(1) Despite section 65, and any provision of a company’s Memorandum of Incorporation, or any resolution adopted by its board or holders of its securities, to the contrary, a company may not dispose of, or give effect to an agreement or series of agreements to dispose of, all or the greater part of its assets or undertaking, implement an amalgamation or a merger, or implement a scheme of arrangement, unless:

(a) the disposal, amalgamation or merger, or scheme of arrangement:

(i) has been approved in terms of this section; or

(ii) is pursuant to or contemplated in an approved business rescue plan for that company, in terms of Chapter 6; and

(b) to the extent that Parts B and C of this Chapter, and the Takeover Regulations, apply to a company that proposes to:

(i) dispose of all or the greater part of its assets or undertaking;

(ii) amalgamate or merge with another company; or

(iii) implement a scheme of arrangement,

the Panel has issued a compliance certificate in respect of the transaction, in terms of section 119(4)(b), or exempted the transaction in terms of section 119(6).

[Para. (b) substituted by s. 71 of Act 3/2011]

(2) A proposed transaction contemplated in subsection (1) must be approved:

(a) by a special resolution adopted by persons entitled to exercise voting rights on such a matter, at a meeting called for that purpose and at which sufficient persons are present to exercise, in aggregate, at least 25% of all of the voting rights that arc entitled to be exercised on that matter, or any higher percentage as may be required by the company’s Memorandum of Incorporation, as contemplated in section 64(2); and

[Para. (a) substituted by s. 71 of Act 3/2011]

(b) by a special resolution, also adopted in the manner required by paragraph (a), by the shareholders of the company’s holding company if any, if:

(i) the holding company is a company or an external company;

(ii) the proposed transaction concerns a disposal of all or the greater part of the assets or undertaking of the subsidiary; and

(iii) having regard to the consolidated financial statements of the holding company, the disposal by the subsidiary constitutes a disposal of all or the greater part of the assets or undertaking of the holding company; and

[Subpara. (iii) substituted by s. 71 of Act 3/2011]

(c) by the court, to the extent required in the circumstances and manner contemplated in subsections (3) to (6).

(3) Despite a resolution having been adopted as contemplated in subsections (2)(a) and (b), a company may not proceed to implement that resolution without the approval of a court if:

(a) the resolution was opposed by at least 15% of the voting rights that were exercised on that resolution and, within five business days after the vote, any person who voted against the resolution requires the company to seek court approval; or [Para. (a) substituted by s. 71 of Act 3/2011]

33

(b) the court, on an application within 10 business days after the vote by any person who voted against the resolution, grants that person leave, in terms of subsection (6), to apply to a court for a review of the transaction in accordance with subsection (7).

[Para. (b) substituted by s. 71 of Act 3/2011]

(4) For the purposes of subsections (2) and (3), any voting rights controlled by an acquiring party, a person related to an acquiring party, or a person acting in concert with either of them, must not be included in calculating the percentage of voting rights:

(a) required to be present, or actually present, in determining whether the applicable quorum requirements are satisfied; or

(b) required to be voted in support of a resolution, or actually voted in support of the resolution. [Subs. (4) substituted by s. 71 of Act 3/2011]

(4A) In subsection (4), “act in concert” has the meaning set out in section 117(1)(b).

[Subs. (4A) inserted by s. 71 of Act 3/2011]

(5) If a resolution requires approval by a court as contemplated in terms of subsection (3)(a), the company must either:

(a) within 10 business days after the vote, apply to the court for approval, and bear the costs of that application; or [Para. (a) substituted by s. 71 of Act 3/2011]

(b) treat the resolution as a nullity.

(6) On an application contemplated in subsection (3)(b), the court may grant leave only if it is satisfied that the applicant:

(a) is acting in good faith;

(b) appears prepared and able to sustain the proceedings; and

(c) has alleged facts which, if proved, would support an order in terms of subsection (7).

(7) On reviewing a resolution that is the subject of an application in terms of subsection (5)(a), or after granting leave in terms of subsection (6), the court may set aside the resolution only if:

(a) the resolution is manifestly unfair to any class of holders of the company’s securities; or

(b) the vote was materially tainted by conflict of interest, inadequate disclosure, failure to comply with the Act, the Memorandum of Incorporation or any applicable rules of the company, or other significant and material procedural irregularity.

(8) The holder of any voting rights in a company is entitled to seek relief in terms of section 164 if that person:

(a) notified the company in advance of the intention to oppose a special resolution contemplated in this section; and

(b) was present at the meeting and voted against that special resolution.

(9) If a transaction contemplated in this Part has been approved, any person to whom assets are, or an undertaking is, to be transferred, may apply to a court for an order to effect:

(a) the transfer of the whole or any part of the undertaking, assets and liabilities of a company contemplated in that transaction;

(b) the allotment and appropriation of any shares or similar interests to be allotted or appropriated as a consequence of the transaction;

(c) the transfer of shares from one person to another;

(d) the dissolution, without winding-up, of a company, as contemplated in the transaction;

(e) incidental, consequential and supplemental matters that are necessary for the effectiveness and completion of the transaction; or

(f) any other relief that may be necessary or appropriate to give effect to, and properly implement, the amalgamation or merger.

34

164. Dissenting shareholders’ appraisal rights

(1) This section does not apply in any circumstances relating to a transaction, agreement or offer pursuant to a business rescue plan that was approved by shareholders of a company, in terms of section 152.

(2) If a company has given notice to shareholders of a meeting to consider adopting a resolution to:

(a) amend its Memorandum of Incorporation by altering the preferences, rights, limitations or other terms of any class of its shares in any manner materially adverse to the rights or interests of holders of that class of shares, as contemplated in section 37(8); or

(b) enter into a transaction contemplated in section 112, 113, or 114,

that notice must include a statement informing shareholders of their rights under this section.

(3) At any time before a resolution referred to in subsection (2) is to be voted on, a dissenting shareholder may give the company a written notice objecting to the resolution.

(4) Within 10 business days after a company has adopted a resolution contemplated in this section, the company must send a notice that the resolution has been adopted to each shareholder who:

(a) gave the company a written notice of objection in terms of subsection (3); and

(b) has neither:

(i) withdrawn that notice; or

(ii) voted in support of the resolution.

(5) A shareholder may demand that the company pay the shareholder the fair value for all of the shares of the company held by that person if:

(a) the shareholder:

(i) sent the company a notice of objection, subject to subsection (6); and

(ii) in the case of an amendment to the company’s Memorandum of Incorporation, holds shares of a class that is materially and adversely affected by the amendment;

(b) the company has adopted the resolution contemplated in subsection (2); and

(c) the shareholder:

(i) voted against that resolution; and

(ii) has complied with all of the procedural requirements of this section.

(6) The requirement of subsection (5)(a)(i) does not apply if the company failed to give notice of the meeting, or failed to include in that notice a statement of the shareholders rights under this section.

(7) A shareholder who satisfies the requirements of subsection (5) may make a demand contemplated in that subsection by delivering a written notice to the company within:

(a) 20 business days after receiving a notice under subsection (4); or

(b) if the shareholder does not receive a notice under subsection (4), within 20 business days after learning that the resolution has been adopted.

(8) A demand delivered in terms of subsections (5) to (7) must also be delivered to the Panel, and must state: [Words preceding para. (a) substituted by s. 103 of Act 3/2011]

(a) the shareholder’s name and address;

(b) the number and class of shares in respect of which the shareholder seeks payment; and

(c) a demand for payment of the fair value of those shares.

(9) A shareholder who has sent a demand in terms of subsections (5) to (8) has no further rights in respect of those shares, other than to be paid their fair value, unless:

(a) the shareholder withdraws that demand before the company makes an offer under subsection  (11), or allows an offer made by the company to lapse, as contemplated in subsection (12)(b);

35

(b) the company fails to make an offer in accordance with subsection (11) and the shareholder withdraws the demand; or

(c) the company, by a subsequent special resolution, revokes the adopted resolution that gave rise to the shareholder’s rights under this section.

[Para. (c) substituted by s. 103 of Act 3/2011]

(10) If any of the events contemplated in subsection (9) occur, all of the shareholder’s rights in respect of the shares are reinstated without interruption.

(11) Within five business days after the later of:

(a) the day on which the action approved by the resolution is effective;

(b) the last day for the receipt of demands in terms of subsection (7)(a);or

(c) the day the company received a demand as contemplated in subsection (7)(b), if applicable, the company must send to each shareholder who has sent such a demand a written offer to pay an amount considered by the company’s directors to be the fair value of the relevant shares, subject to subsection (16), accompanied by a statement showing how that value was determined.

(12) Every offer made under subsection (11):

(a) in respect of shares of the same class or series must be on the same terms; and

(b) lapses if it has not been accepted within 30 business days after it was made.

(13) If a shareholder accepts an offer made under subsection (12):

(a) the shareholder must either in the case of:

(i) shares evidenced by certificates, tender the relevant share certificates to the company or the company’s transfer agent; or

(ii) uncertificated shares, take the steps required in terms of section 53 to direct the transfer of those shares to the company or the company’s transfer agent; and

(b) the company must pay that shareholder the agreed amount within 10 business days after the shareholder accepted the offer and:

(i) tendered the share certificates; or

(ii) directed the transfer to the company of uncertificated shares.

(14) A shareholder who has made a demand in terms of subsections (5) to (8) may apply to a court to determine a fair value in respect of the shares that were the subject of that demand, and an order requiring the company to pay the shareholder the fair value so determined, if the company has:

(a) failed to make an offer under subsection (11); or

(b) made an offer that the shareholder considers to be inadequate, and that offer has not lapsed.

(15) On an application to the court under subsection (14):

(a) all dissenting shareholders who have not accepted an offer from the company as at the date of the application must be joined as parties and are bound by the decision of the court;

(b) the company must notify each affected dissenting shareholder of the date, place and consequences of the application and of their right to participate in the court proceedings; and

(c) the court:

(i) may determine whether any other person is a dissenting shareholder who should be joined as a party;

(ii) must determine a fair value in respect of the shares of all dissenting shareholders, subject to subsection (16);

(iii) in its discretion may:

(aa) appoint one or more appraisers to assist it in determining the fair value in respect of the shares; or

36

(bb) allow a reasonable rate of interest on the amount payable to each dissenting shareholder from the date the action approved by the resolution is effective, until the date of payment;

(iv) may make an appropriate order of costs, having regard to any offer made by the company, and the final determination of the fair value by the court; and

(v) must make an order requiring:

(aa) the dissenting shareholders to either withdraw their respective demands or to comply with subsection (13)(a); and [Item (aa) substituted by s. 103 of Act 3/2011]

(bb) the company to pay the fair value in respect of their shares to each dissenting shareholder who complies with subsection (13)(a), subject to any conditions the court considers necessary to ensure that the company fulfils its obligations under this section.

(15A) At any time before the court has made an order contemplated in subsection (15)(c)(v), a dissenting shareholder may accept the offer made by the company in terms of subsection (11), in which case:

(a) that shareholder must comply with the requirements of subsection 13(a); and

(b) the company must comply with the requirements of subsection 13(b). [Subs. (15A) inserted by s. 103 of Act 3/2011]

(16) The fair value in respect of any shares must be determined as at the date on which, and time immediately before, the company adopted the resolution that gave rise to a shareholder’s rights under this section.

(17) If there are reasonable grounds to believe that compliance by a company with subsection (13)(b), or with a court order in terms of subsection (15)(c)(v)(bb), would result in the company being unable to pays its debts as they fall due and payable for the ensuing 12 months:

(a) the company may apply to a court for an order varying the company’s obligations in terms of the relevant subsection; and

(b) the court may make an order that:

(i) is just and equitable, having regard to the financial circumstances of the company; and

(ii) ensures that the person to whom the company owes money in terms of this section is paid at the earliest possible date compatible with the company satisfying its other financial obligations as they fall due and payable.

(18) If the resolution that gave rise to a shareholder’s rights under this section authorised the company to amalgamate or merge with one or more other companies, such that the company whose shares are the subject of a demand in terms of this section has ceased to exist, the obligations of that company under this section are obligations of the successor to that company resulting from the amalgamation or merger.

(19) For greater certainty, the making of a demand, tendering of shares and payment by a company to a shareholder in terms of this section do not constitute a distribution by the company, or an acquisition of its shares by the company within the meaning of section 48, and therefore are not subject to:

(a) the provisions of that section; or

(b) the application by the company of the solvency and liquidity test set out in section 4.

(20) Except to the extent:

(a) expressly provided in this section; or

(b) that the Panel rules otherwise in a particular case, a payment by a company to a shareholder in terms of this section docs not obligate any person to make a comparable offer under section 125 to any other person.

[Subs. (20) inserted by s. 103 of Act 3/2011]

37

ANNEXURE 2

DEBENTURE TRUSTEE’S APPROVAL

OrionRealEstateLimitedAttention:CompanySecretary16thFloorOrionHouse49JorissenStreetBraamfontein2000

8April2015

DearSirs

RE: ORION’S CIRCULAR TO LINKED UNITHOLDERS DATED ON OR ABOUT 13 APRIL 2015 (“THE CIRCULAR”)

I,GeorgeRossMunro,beingtheTrusteeoftheOrionRealEstateLimited(“Orion”)PrincipalDebentureTrust,herebyconsenttothefollowingproposedactionsascontemplatedinthespecialresolutionsdetailedintheOrionCircular.Iconsentto,andaminsupportofthefollowingmatters,onthebasisthatthesaidactionsareregardedtobeinthebestinterestsofOrionlinkedunitholders(andthereforealsothedebentureholders)forthereasonsassetoutintheCircular:

1.1 theproposedamendmentof thePrincipalDebentureTrust topermit thedelinking,cancellationandcapitalisationoftheOriondebenturesbyinsertingthefollowingclauseafterclause30ofthedeed:

“31 DELINKING, CANCELLATION AND CAPITALISATION

Subject to a special resolution, the company may:

31.1 delink the ordinary shares and the debentures for the purpose of the cancellation and subsequent capitalisation as contemplated in 31.2 and 31.3;

31.2 subsequent to the delinking as contemplated in 31.1, cancel the debentures and terminate the deed without payment to the debenture holders; and

31.3 subsequent to the delinking and cancellation as contemplated in 31.1 and 31.2, capitalise the issue price of the debentures to the company’s stated capital account.”

1.2 theproposeddelinkingoftheOriondebentureandOrionordinaryshareportionsoftheOrionlinkedunitandthesubsequentcapitalisationoftheOriondebenturestotheCompany’sstatedcapitalaccount;

1.3 the subsequent capitalisation of the Oriondebentures toOrion’s statedcapital account,whereafterlinkedunitholderswillholdonlyordinarysharesinOrion,listedontheJSE;and

1.4 the termination of the Debenture Trust, with effect from the date of the approval by the debentureholders(effectivelythecurrentlinkedunitholders)oftheproposedspecialresolutiontoterminatetheDebentureTrust.

Yoursfaithfully

George Ross Munro

(TrusteeoftheOrionRealEstateLimitedDebentureTrust)

38

ANNEXURE 3

MOI AMENDMENTS

TheFollowingdefinitionshaveeitherbeeninserted,deletedoramended:

• Thewords“No71of”havebeeninsertedintothedefinitionoftheCompaniesAct.• Article1.2.8,thedefinitionoftheFinancialMarketsAct,No19of2012hasbeenamended,bychangingthe

words‘hasthemeaning’to‘meansthe’sothatthedefinitionreadsbetter.• Thedefinitionof“GrossIncome”intermsoftheIncomeTaxAct,No58of1962hasbeeninsertedandis

definedas“havingthemeaningascribedtheretoinsection1oftheIncomeTaxAct”.• AdefinitionreferringtotheIncomeTaxAct,No58of1962hasbeeninserted.• Thedefinitionof“Debenture”hasbeendeleted.• Thedefinitionof“LinkedUnit”hasbeendeleted.• Adefinitionof“REIT”hasbeeninserted,andisdefined“ashavingthemeaningascribedtheretoinsection 1

oftheIncomeTaxAct”.• Adefinitionof“RentalIncome”hasbeeninsertedandisdefinedasmeaning“rentalincomeasdefinedin

section25BBoftheIncomeTaxAct”.• Thedefinitionof“Shares”hasbeenamendedtoreadasfollows–meansanordinaryshareofnoparvalue

in thesharecapitalof theCompany,having the rightsandprivilegessetout inarticle3,and“Shares”meansmorethanoneShare.

• Thedefinitionof“Shareholder”hasbeenamendedtonowreadasfollows–meanstheregisteredholderofaSharewhoisenteredassuchintheSecuritiesRegister,subjecttotheprovisionsofsection57oftheCompaniesAct.

Article 2 – Incorporation and nature of the Company

• Article2hasbeenamendedbyinsertingclause2.1.2.4,whichstatesthatthecompanyisincorporatedinaccordancewithandgovernedbytheJSEListingsRequirements.

• Article2.1.3hasbeen insertedandstates that theCompany’sSharesare listedonaStockExchangeoperatedbytheJSE.

Article 2.2 – Powers of the Company and Special Conditions

• Article2.2hasbeenamendedbyinsertingArticle2.2.1,whichdealswiththemannerinwhichtheCompanymustconductitsbusinessandstatesthattheCompanymustconductitsbusiness,atalltimes,inamannerthatcomplieswiththeprovisionsofsection25BBoftheIncomeTaxActandtherequirementssetbytheJSE,fortheCompanytoqualifyasaREIT.

• Article2.2.2hasbeeninserted,andmakesthepowersoftheCompanyinArticle2.2.1subjecttoclause 2.2.2.1,inthattheCompanyhasalllegalpowersandcapacitycontemplatedintheAct(Companies Act).

Article 3 – Securities

• Article3.1hasbeenamendedbythedeletionofthefollowingwords–“Eachordinaryshareislinkedtoadebenturetoforma“linkedunit”.Eachsharemayonlybeissuedandtradedtogetherwiththedebenturewhichislinked,untilsuchtimeasitisdelinkedinaccordancewiththedebenturetrustdeedandarticle 3.5.”ThispartoftheArticlehasbeendeletedastheCompanywillnolongerhavealinkedunitcapitalstructure,butanallsharecapitalstructurepostthecapitalrestructure.

39

Article 3.5 – Linked Debentures

• ThisArticlehasbeendeletedinitsentirety,astheCompanywill,postthecapitalrestructure,nolongerhavealinkedunitcapitalstructure,butanallsharecapitalstructure.

Article 15 – Conduct of Business and Gross Income

• Thisarticlehasbeeninserted.Article15.1providesthattheCompanymustconductitsbusinessinsuchawaythatatleast75%oftheGrossIncomewhichitreceivesorisaccruedbyit,intheYearofAssessment,willconsistofRentalIncome.

Article 20 – Adoption

• Thisprovisionhasbeeninsertedandreadsasfollows–“ThisMOIwasadoptedbyaspecialresolutionofshareholderson17July2013andamended in termsofaspecial resolutionofshareholderspassedon 14 May2015.”

40

ANNEXURE 4

LINKED UNIT PRICE HISTORY

PeriodHigh

(cents)Low

(cents)Close (cents) Volume

Value (R)

MonthlyMarch 2015 31 27 27 210000 57100February2015 31 28 28 64544 18159January2015 31 28 31 95833 26882December2014 31 25 31 202487 57699November2014 31 25 31 148298 41136October2014 37 31 31 56920 18629September2014 33 29 33 154064 50098August2014 29 29 29 – –July2014 29 25 29 30410 8819June2014 29 24 29 17972 5197May2014 29 24 29 5515 1599April2014 29 24 24 50134 13336March2014 30 23 24 73220 18265February2014 34 22 30 181480 44883January2014 30 23 23 162700 38476

DailyApril 20158 27 27 27 – –7 27 27 27 645 1742 34 34 34 4745 16131 27 27 27 – –March 201531 27 27 27 – –30 27 27 27 – –27 27 27 27 200000 5400026 31 31 31 – –25 31 31 31 – –24 31 31 31 – –23 31 31 31 – –20 31 31 31 – –19 31 31 31 – –18 31 31 31 – –17 31 31 31 – –16 31 31 31 – –13 31 31 31 – –12 31 31 31 – –11 31 31 31 – –10 31 31 31 – –9 31 31 31 – –6 31 31 31 10000 31005 28 28 28 – –4 28 28 28 – –3 28 28 28 – –2 28 28 28 – –

41

PeriodHigh

(cents)Low

(cents)Close (cents) Volume

Value (R)

February 201527 28 28 28 – –26 28 28 28 – –25 28 28 28 – –24 28 28 28 – –23 28 28 28 – –20 31 28 28 992 29119 31 31 31 – –18 31 31 31 – –17 31 31 31 100 3116 31 28 31 869 25913 31 31 31 – –12 31 31 31 – –11 31 28 31 29754 834610 31 31 31 – –9 31 31 31 – –

Source:JSEmarketinformation

42

ANNEXURE 5

DIRECTORS’ INFORMATION

ThetablebelowsetsoutinformationpertainingtothecurrentdirectorsofOrionanditsmaterialsubsidiaries:

NAME, QUALIFICATION, AGE AND NATIONALITY FUNCTION BUSINESS ADDRESS

Richard Wilkinson Age:75

Non-executiveChairman H15–2FairmileHammockIslandThesenIslandsLongStreetKynsna6571

Franz GmeinerAge:56BCom(Hons)CA(SA)

CEOandMD 16thFloorOrionHouse49JorissenStreetBraamfonteinJohannesburg2000

DR Antoinette Gmeiner Age:52DCur;MasterExecCoach

Non-executiveDirector 15thFloorOrionHouse49JorissenStreetBraamfonteinJohannesburg2000

Coen NolteAge:64BCom,MBA

FinancialDirector 16thFloorOrionHouse49JorissenStreetBraamfonteinJohannesburg2000

Mlamuli Delani MthembuAge:57BA(Hons)(UJ)MSc(UnivKZN)

IndependentNon-executiveDirector

48ABowlingRoadBedfordview

Directorsabridgedcurriculavitaearesetoutbelow:

1. MrRichardWilkinson

MrRichardWilkinsonretiredasExecutiveDirectoroftheInstituteofDirectorsinSouthernAfricaduring2003, a position he held since 1991. He provided the Secretariat to, and was a member of the KingCommitteeonCorporateGovernance.Heholdsseveraldirectorshipsonlistedandnon-listedcompaniesandinthenon-governmentalorganisationalsector.Heretiredin1991asExecutiveDirectorofRenniesGroupLimitedhavingservedtheenterprisefor35years.

2. MrFranzGmeiner

MrFranzGmeinerattainedhisBComAccounting(Hons)andqualifiedasoneofthetoptenstudentsin theChartered Accountants examination in 1983. During his accountancy career he became a partner inCohenandGmeinerAccountants,whichheledtobecomeoneofthelargestauditingfirmsinSouthAfrica.Hefoundedapropertycompany in1991,whichhasgrown into thecurrentOrionRealEstateLimited,listedontheJSELimited.During1999hetookoverthehoteloperationsoftheHotelDevonshireandsincethentheOrionHotelsdivisionhasbuiltupaportfolioof13hotels.Heisamemberofseveralclubsandorganisationsandholdsnumerousdirectorshipsandtrusteeships.

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3. DrAntoinetteGmeiner

DrAntoinetteGmeineristhechiefexecutiveofficerofOrionBusinessSolutions,andalsoadirectorofOBSCoachHouse.ShecompletedherdoctorateinNursingSciencein1993atRandAfrikaansUniversity.SheisaMasterExecutiveCoachandhasextensivecoachingexperienceonexecutivecommitteeandboardlevel.Shehasbeencoachingformorethan14yearsandhasestablishedaninternalCoachingProgrammefortheOrionGroup,where21teamsarebeingcoachedonamonthlybasis.DrAntoinetteGmeinerandapartner,haveaBusinessPartner relationshipwithanLPL(LearningPerformanceLink),aswellas theETDPSETA,wheretheyhaveestablishedacoachingacademy.Shespecialisesinteamcoachingandhasbeencoachinginternalandexternalteamsinorganisationsformorethan26years.

4. MrCoenNolte

MrCoenNolteholdsaBCom(UFS)andanMBA(WBS)degreeandhascompletedaseniormanagementcourseinNewVentureCreationaswellasseniorcoursesinriskmanagementandcoaching.Hehasmorethan30yearsofmanagementexperienceandspecialisesinstrategicandbusinessplanning,startupofemergingbusinessesand thementoringof emergingentrepreneurs.Hehasbeen instrumental in therepositioningofseveralmajororganisations.MrNoltehasassistedemergingorganisationsandprojectswiththeirbusinessandfinancialplanning,structuringandstrategicpositioning.Duringtheeightiesandninetieshewas,atexecutivemanagementlevel,involvedintherepositioningandfinancialturnaroundoftheSABC.MrNoltealsoassistedvariousprivateclientsand theGovernmentwith thedevelopmentofbusinessplans,mostlyinthefieldsofagricultureandagri-tourism.

5. MrDelaniMthembu

MrDelaniMthembuholdsBAHonoursHRD(UJ)andMScLeadershipandInnovation(UKZN)degrees.HehasalsocompletedapostgraduatecertificateinCoachingfromMiddlesexUniversity(UK)andMastersLevelAccreditationbyEMCCandWABC.CurrentlyheisaPhDcandidateattheUniversityofKZN.Hehasmemberships to various business organisations and is lecturing part time at various universities.Mr MthembuhasservedasCEOandboardmembertoanumberofprivateandpublicorganisations.

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ANNEXURE 6

BOARD REPORT ON THE CONVERSION OF THE PAR VALUE ORDINARY SHARES INTO ORDINARY SHARES OF NO PAR VALUE

Regulation31(7)oftheActrequirestheboardofacompanytocauseareporttobepreparedinrespectofaproposedresolutiontoconvertanyparvaluesharesintonoparvalueshares(the“Report”).Thisannexureconstitutes theReport in relation to theproposedconversionof theOrionordinaryshares fromparvaluesharesof1centeachtoordinarysharesofnoparvalue(the“proposedconversion”).TheBoardhassatisfieditselfthattheproposedconversionfromordinarysharesofparvaluetonoparvaluewillhavenoeffectonOrionlinkedunitholders.

1. THE REPORT

IntermsofRegulation31(7)oftheAct,theReportisrequiredto,ataminimum:

1.1 stateallinformationrelevanttothevalueofthesecuritiesaffectedbytheproposedconversion;

1.2 identifyholdersoftheCompany’ssecuritiesaffectedbytheproposedconversion;

1.3 describethematerialeffectsthattheproposedconversionwillhaveontherightsofunitholdersontheconversionoftheCompany’ssecuritiesaffectedbytheproposedconversion;and

1.4 evaluateanymaterialadverseeffectsoftheproposedarrangementagainstthecompensationthatanyofthosepersonswillreceiveintermsofthearrangement.

2. INFORMATION RELEVANT TO THE VALUE OF THE SECURITIES AFFECTED BY THE PROPOSED CONVERSION

2.1 ThesecuritiesaffectedbytheproposedconversionaretheauthorisedandissuedordinarysharesinthesharecapitaloftheCompanycomprising2000000000and630 698688ordinarysharesof1centeach.

2.2 Orionhasnootherclassofauthorisedorissuedshares.

2.3 Orion’sordinarysharesarelistedonthemainboardoftheJSELimited,tradingunderthesharecodeORE.

2.4 Informationinrelationtothehistoricnetassetvalue,earnings,headlineearningsanddistributionsperordinaryshareofOrionisdetailedinthefinancialstatementsoftheCompanyforthethreeyearsended30June2012,2013and2014,allofwhichwillbeavailableforinspectionattheCompany’sregisteredoffice.

2.5 Giventhatthenumberofordinaryshares(andlinkedunits)inOrioninissueandtherightsattachingto those ordinary shares (and linked units) will be unaffected by the proposed conversion, theproposedconversionwillhaveno impactonthehistoricnewassetvalueandtangiblenetassetvalue per share. The proposed conversion will also have no effect on the distribution, and taxtreatmentthereof,thatwillbereceivedbyaUnitholder.TheproposedconversionshouldassuchhavenoimpactonthepriceatwhichOrionlinkedunittradesontheJSE.

2.6 Following upon the delinking of the Orion ordinary shares and the cancellation of the OriondebenturesandthecapitalisationoftheissuepricetoOrion’sstatedcapitalwhichwillbeproposedat thegeneralmeetings,OrionunitholderswillholdonlyOrionordinaryparvalueshareswhichwill then be converted into no par value shares as contemplated in this Report. The proposedconversionshouldassuch,havenoimpactonthepriceatwhichanOrionsharewillthentradeontheJSE.

2.7 IntermsofRegulation31(8)oftheAct,theproposedresolutionscontemplatedinSubregulation (6),togetherwith thisReportwillbe filedwith theCompaniesand IntellectualPropertyCommissionandtheSouthAfricanRevenueServicesatthesametimethattheNoticeofGeneralMeetingispublishedtotheOrionlinkedunitholders.

45

3. HOLDERS OF THE COMPANY’S SECURITIES AFFECTED BY THE PROPOSED CONVERSION

3.1 TheproposedconversionwillaffecttheholdersoftheCompany’slinkedunitswhocomprisetheholdersofallofOrion’sissuedordinarysharesof1centeach(astheordinarysharesareheldaspartofaninseparableportioncomprisingtheOrionlinkedunit)asattherecorddatetobeentitledtoattendtheGeneralMeetingtovoteontheproposedconversionbeingFriday,8May2015.

4. MATERIAL EFFECTS OF THE PROPOSED CONVERSION ON THE COMPANY’S SHAREHOLDERS

4.1 Theproposedconversionresultsintheconversionofeachordinaryshareof1centeachintoanordinaryshareofnoparvalue.

4.2 Atpresent, theOrionordinarysharesare inseparably linked to theOriondebentures.Since,asindicatedinparagraph2.6above,theOriondebentureswillbecancelled,theconvertedshareswillnolongerformpartofanylinkedunits.Accordingly,aftertheproposedconversion,eachshareholderofOrionwillowntheidenticalnumberofOrionordinarysharesastheyheldbeforetheproposedconversion and the no par value shares will represent the same proportion of the total issuedordinarysharecapitalofOrionas theparvalueordinaryshares theyheldbefore theproposedconversion.AstheOrionordinarysharesareinseparablylinkedtotheOriondebentures,thesamewillapplytotheproportionofthetotalissuedlinkedunitsheldbeforetheproposedconversion.

4.3 Theproposedconversionhasnoother impactonanyof therightsattaching toOrion’sordinarysharesandthenoparvalueordinaryshareswillconferontheunitholderofOrionallofthesamerightsas theyenjoyedasaholderofparvalueordinarysharesbefore theproposedconversionincluding(withoutlimitation)rightstoparticipateintheprofitsofthecompanyonwindingup.

5. EVALUATION OF MATERIAL ADVERSE EFFECTS OF THE PROPOSED CONVERSION AGAINST COMPENSATION OFFERED

5.1 Asdetailedinparagraph3.3above,theproposedconversionhasnoadverseeffectsonunitholdersofOrionastheyareinthesamepositionandenjoythesamerightsbeforeandaftertheproposedconversion.

5.2 ThereisnocompensationbeingofferedinthecontextoftheproposedconversionastherearenoadverseeffectsoftheproposedconversiononunitholdersoftheCompany.

6. OTHER PROVISIONS OF REGULATION 31

IntermsofRegulation31(9)oftheRegulations,aunitholderoftheCompanyaffectedbytheproposedconversionwhobelievesthattheproposaldoesnotadequatelyprotecttheirrightsorotherwisefailstosatisfytherequirementsoftheAct,mayapplytotheHighCourtforanorderandtheHighCourtmayorderthatsuchanapplicationisjustandreasonableinthecircumstances.

OnbehalfoftheBoard

Franz Gmeiner

8April2015

46

ANNEXURE 7

HISTORICAL FINANCIAL INFORMATION

TRPhasgrantedthecompanythedispensationtoprovideanextractofthehistoricalfinancialstatementsinacondensedformatincontrasttotherequirementsofregulation106(6)(d)whichrequiresfullannualfinancialstatements.Thedispensationwasgrantedonthebasisthattherewillbenoprejudicetoanyshareholders,since there isnoconsiderationpayable to them in respectof theschemeand their rightsandeconomicinterestintheCompanywillnotinanywaybeaffectedbythescheme.Thefullannualfinancialstatementsfortheyearsended2014,2013and2012arealsoopenforinspectionatthecompany’sregisteredofficeperparagraph26ofthecircularandarealsoavailableonOrion’swebsite.

ThisreportofhistoricalfinancialinformationofOrionRealEstateLimited(“Orion”)istheresponsibilityoftheOrionDirectors.

DIRECTORS REPORT

Oriondelivereda totaldistribution for the year ended30 June2014of 0.41centsper linkedunit (2013:0.12 cents)representinggrowthindistributionstolinkedunitholdersof241.67%.

RevenueandProfitbefore taxation increasedby10.8% (2013:4.5%decrease)and56.5% (2013:59.7%decrease)respectively,comparedwiththepriorcomparativeperiod.The2014increaseinRevenueandProfitbeforetaxationcaninpartbeattributedtotheincreaseinrentalincome.Thepercentageofcostrecoveryinrespect of municipal charges also improved during the 2014 period due to increased focus on energymanagementinitiatives.

NOTES TO THE FINANCIAL STATEMENTS

Basis of preparation

ThecondensedconsolidatedfinancialstatementsarepreparedinaccordancewiththerequirementsoftheJSELimitedListingsRequirements forprovisional reportsand the requirementsof theCompaniesActofSouthAfrica.TheListingsRequirementsrequireprovisionalreportstobepreparedinaccordancewiththeframeworkconceptsandthemeasurementandtherecognitionrequirementsofIFRSandtheSAICAFinancialReportingGuidesasissuedbytheAccountingPracticesCommitteeandTheFinancialPronouncementsasissuedby theFinancialReporting standardsCouncil and toalso, asaminimum,contain the informationrequiredbyIAS34InterimFinancialReporting.

TheaccountingpoliciesappliedinthepreparationofthesecondensedconsolidatedfinancialstatementsareintermsofIFRSandareconsistentwiththoseappliedinthepreviousfinancialstatements.Orionadoptedthenew,revisedoramendedaccountingpronouncementsasissuedbytheInternationalAccountingStandardsBoardwhichwereeffectiveandapplicabletothegroupfrom1July2013,noneofwhichhadanymaterialimpactontheOrionGroup’sfinancialresults.

Thesecondensedconsolidatedfinancialstatementshavebeenpreparedunderthehistoricalcostconventionexceptforinvestmentpropertieswhicharemeasuredatfairvalueandcertainfinancialinstrumentswhicharemeasuredateitherfairvalueoramortisedcost.Thefairvalueofinvestmentpropertiesisdeterminedbyeithermakinguseofanindependentaccreditedvaluatororbythedirectorsbasedoncurrentmarketconditions.Propertyvaluationsareconsidered tobe level3on the fairvaluehierarchyandmakesuseofsignificantassumptions thatarebasedon inputs thatarenotobservable in themarketandnecessitates theuseofinternalinformationinsituationsinwhichthereislittlemarketactivity.Therewerenotransfersbetweenfairvaluehierarchylevelsduringtheyear.Therehavebeennomaterialchangesinjudgementsorestimatesofamountsreportedinpreviousperiodsexceptforrelatedpartytradereceivablesbeingrestatedafterbeingdiscounted.

47

Related parties due to common control by director

OrionBusinessSolutionsProprietaryLimitedFargosceneProprietaryLimitedOFMPropertyManagementProprietaryLimitedOrionHotels&ResortsProprietaryLimitedOrionHotels&Resorts(SA)ProprietaryLimitedOrionAgriProprietaryLimitedEagleFleetSolutionsProprietaryLimitedGmeinerInvestmentHoldingProprietaryLimitedOrionSecurityServicesProprietaryLimited

Commitments

The group has capital commitments, not yet incurred, of R15  163  000 in respect of capital expenditurecontractedforat30June2014toacquiretheSelborneHotel.ThegrouphasadditionalcapitalcommitmentofR2 100 000inrespectofcapitalexpendituretoacquiretheparkinglotatWendywoodShoppingCentre.

Subsequent events

Subsequenttoreportingdatethegrouphassoldthefollowinginvestmentproperties:Marlboro142Score–MfuleniMountainViewShoppingCentre

Contingent liabilities

ThecompanyhassignedsuretyofR8 400 000fortheobligationsofitssubsidiariesinrespectofmortgagebondfinance.

AnamountofR2.6million isunderdispute regarding theSelborneHotelacquisition.Thematter remainsunderreview.

TheBodyCorporateofErf195ElmaPark(asubsidiaryofOrion)has initiated liquidationproceedingsforarrearlevies.Thesearebeingcontestedbymentionedcompanyaswequestiontheleviesraisedaswellastheexpenseallocationbasisused.Thecompanyisintheprocessoflaunchingacounterapplication;however,arecurrentlyinnegotiationsinanattempttosettlethematterwiththeBodyCorporate.

48

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Figures in Rand

30 June 201412 months

Restated

30 June 201312 months

Restated

30 June 201212 months

Audited

ASSETSNon-current assets 803 667 130 745 310 508 695 858 856Grossinvestmentproperties 783223686 733823518 695577519Straight-linerentalincomeadjustment (11045878) (9175070) (9337896)Netinvestmentproperties 772177808 724648448 686239623Straight-lineleaseasset 10193238 9175070 9028615Property,plantandequipment 1289050 564705 590618Tradeandotherreceivables 20007034 10922285 –

Current assets 31 254 311 29 631 485 33 993 706Loanstorelatedparties 14508175 5740324 2700135Loanstodirectors 160071 –Straight-lineleaseasset 852643 –Tradeandotherreceivables 14959234 19703737 28335287Cashandcashequivalents 774188 4187424 2958284Investmentpropertiesheldforsale – 24650000 16190000

Total assets 834 921 441 799 591 993 746 042 562

EQUITY AND LIABILITIESCapital and reservesSharecapitalandsharepremium 74235526 74235526 74235526Debenturereserve 10675886 10675886 10675886Retainedearnings 369012064 329090478 303725058

Totalequityattributabletoownersoftheparent 453923476 414001890 388636470Non-controllinginterest (270127) (271212) (267426)

Total equity 453 653 349 413 730 678 388 369 044

Non-current liabilities 302 024 802 297 834 463 169 806 707Linkeddebentures 54974397 54438419 49386923Borrowings 167250231 169992645 51796490Deferredtaxliabilities 79800174 73403399 68623294Current liabilities 79 243 290 88 026 852 187 866 811Currentincometaxliabilities 11005713 13064856 12715619Loansfromshareholders – – 1998792Loansfromdirectors 18508 18508 2598511Loansfromrelatedparties 435360 2126356 905609Tenantdeposits 6563381 6371863 6246795Tradeandotherpayables 38718411 30141534 24448808Borrowings 17923438 33846265 136569656Bankoverdraft 4578479 2457470 2383021

Total liabilities 381 268 092 385 861 315 357 673 518

Total equity and liabilities 834 921 441 799 591 993 746 042 562

Linkedunitsinissue 630698688 630698688 630698688Netassetvalueperlinkedunit(cents) 81.16 74.71 69.86

49

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Figures in Rand

30 June 201412 months

Restated

30 June 201312 months

Restated

30 June 201212 months

Audited

Revenue 101059214 91224924 95473815

Gross property revenue 96708822 87198739 90828412

Propertyrevenue 94838010 87361565 90155895Straight-lineofleaseaccrual 1870812 (162826) 672517

Otherincome 3049775 2177891 3043398Otherdirectpropertyoperatingcosts (68146174) (56650405) (60791997)Administrativeandmanagementexpenses (200760) (10578716) (11965192)Repairsandmaintenance (7982122) (5635341) (4951860)Fairvalueadjustment 38816938 40763417 72376415

Grosschangeinfairvalueofinvestmentproperty 40687749 40600591 73048932Straight-lineleaseadjustment (1870812) 162826 (672517)

Fair value adjustment to debtors 4656177 (5102415) –

Operating profit before interest 66902656 52173170 88539176Financeincome 3171429 1685468 2274522Linkeddebentureinterest (535978) (5051496) 5656163Financecosts (19534947) (16865413) (17205419)

Profit before taxation 50003160 31941729 79264442Taxation (10080489) (6580095) (31384825)

Profit for the year 39922671 25361634 47879617

Othercomprehensiveincome – – –

Total comprehensive income for the year 39922671 25361634 47879617

Profit/(Loss)andtotalcomprehensiveincome/(loss)fortheyearattributableto:Ownersoftheparent 39921586 25365420 47966586Non-controllinginterest 1085 (3786) (86969)

39922671 25361634 47879617Linkedunitsinissue 630698688 630698688 630698688Weightedlinkedunitsinissue 627009822 627009822 627009822Basicanddilutedearningsperlinkedunit(cents) 6.37 4.05 7.65Interestdistributionperlinkedunit(cents) 0.41 0.12 0.04

DISTRIBUTABLE EARNINGSProfitbeforetaxation 50003160 31941729 79264442Adjustedfor:Linkeddebentureinterest(amortisation) 535978 5051496 (5656163)Fairvalueadjustmenttotradereceivables(discounting) (4656177) 5102415 –Debentureinterestdistribution 2597606 747524 279674Fairvalueadjustmentoninvestmentproperties (38816938) (40763417) (72376415)Operatingleaseadjustment (1870812) 162826 (672517)

Profitdistributabletolinkedunitholders 7792817 2242573 839021

RECONCILIATION – EARNINGS TO DISTRIBUTABLE EARNINGSBasicearningsattributabletoequityholdersoftheparent 39921586 25365420 47966586Fairvalueadjustmenttoinvestmentproperties (40687750) (40600591) (72376415)Linkeddebentureamortisation 535978 5051496 (5656163)Net(profit)/lossondisposalofinvestmentproperty (1560426) 792564 636000Deferredtax 7444213 6163600 13508913Capitalgainstax 3365964 – 16338726

Headlineanddilutedearnings 9019565 (3227511) 417647Net(profit)/lossondisposalofinvestmentproperty 1560426 (792564) (636000)Taxadjustments (2787174) 6262648 1057374

Distributableearnings 7792817 2242573 839021Headlineearningsperlinkedunit(cents) 1.44 (0.51) 0.07

50

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51

CONSOLIDATED STATEMENTS OF CASH FLOW

Figures in Rand

30 June 201412 months

Audited

30 June 201312 months

Audited

30 June 201212 months

Audited

Cash flows from/(to) operating activities 25 433 111 14 419 542 23 079 023

Cashgeneratedbyoperations 30351996 15094811 23148936Interestreceived 3171429 1685468 2274522Interestpaid (1454054) (909984) (734732)Taxationpaid (6636260) (1450753) (1609703)

Cash flows to investing activities 7 469 774 (10 171 662) 3 342 936

Loansadvancedtorelatedparties (8767851) (3040189) (2700000)Loansadvancedtodirectors (160071) – –Additionstoinvestmentproperty (11600000) (12295407) –Proceedsonsaleofinvestmentproperty 29098006 5397436 6600000Purchasesofproperty,plantandequipment (1100310) (233502) (557064)

Cash flows (to)/from financing activities (38 437 130) (3 093 189) (24 598 672)

Proceedsfromloansfromshareholders – (1998792) 526885Repaymentofloansfromdirectors – (2580003) –Repaymentofloansfromrelatedparties (1690996) – –Proceedsfromloansfromrelatedparties – 1220747 (830572)Interestpaid (18080893) (15207905) (16470687)Increaseininterestbearingborrowings – 15472764  Decreaseininterestbearingborrowings (18665241) – (7824298)

Net increase in cash, cash equivalents and bank overdrafts (5 534 245) 1 154 691 1 823 287

Cash,cashequivalentsandbankoverdraftsatthebeginningoftheyear 1729954 575263 (1248024)

Cash, cash equivalents and bank overdrafts at the end of the year (3 804 291) 1 729 954 575 263

52

SEGMENTAL INFORMATION

30 June 201412 monthsRestated

30 June 201312 monthsRestated

30 June 201212 months

Audited

Revenue (excluding recoveries) R % R % R %Commercial 35088213 47 28226808 41 30539465 43Industrial 9216222 12 10389598 15 11337101 16Retail 24057345 33 19908982 29 19906389 28Hospitality 4246290 6 8732180 13 8558721 12Residential 1158981 2 983143 1 811681 1

73 767 051 100 68 240 711 100 71 153 357 100

Thegroupdoesnothaveanyinter-segmentrevenue.Profit before taxationCommercial 24473062 49 22220053 70 19369619 24Industrial 11413154 23 3611357 11 27753993 35Retail 6625057 13 9185734 29 21436987 27Hospitality 10733998 21 (325138) (1) 15983352 20Residentialandland (3242111) (6) (2750277) (9) (5279509) (7)

50 003 160 100 31 941 729 100 79 264 442 100

Property values (including properties held for sale, before adjustment for straight-lining of leases) Commercial 329978783 43 299379166 39 269395965 38Industrial 86843163 11 96732072 13 102999264 14Retail 182559352 23 184985965 24 187172134 26Hospitality 81999571 10 79881715 11 74719819 11Residential 48442817 6 44094600 6 44395941 7Land 53400000 7 53400000 7 32775115 5

783 223 686 100 758 473 518 100 711 458 238 100

Borrowings (excluding instalment sales and loans) Commercial 71554364 43 78141672 43 81923338 46Industrial 25597334 15 28180201 15 31574055 17Retail 49138070 30 55189383 30 42648757 24Hospitality 11281707 7 13320476 7 14981669 8Residential 8441724 5 9205157 5 9910358 5

166 013 199 100 184 036 889 100 181 038 177 100

Rating of Tenants (Rental Income)Commercial A 3583868 6 3448844 6 5639728 10

B 8819767 15 8479851 16 14922327 26C 13380752 22 10805341 20 8936218 15

Industrial A – – – – – –B 5285476 9 5000179 9 6089744 10C 2644652 4 3821299 7 3530484 6

Retail A 2999091 5 2659484 5 7863855 14B 4849775 8 3932168 7 293657 1C 13254761 22 12570179 23 6690738 11

Hospitality A – – – – – –B 3944524 7 3230520 6 3425743 6C – – – – – –

Residential A – – – – – –B – – – – – –C 1173669 2 983143 1 811680 1

59 936 335 100 54 931 008 100 58 204 174 100

53

ORION REAL ESTATE LIMITED(IncorporatedintheRepublicofSouthAfrica)

(Registrationnumber1997/021085/06)Sharecode:ORE ISIN:ZAE000075651

(“Orion”or“thecompany”)

NOTICE OF GENERAL MEETING OF ORION DEBENTURE HOLDERS

THE ATTENTION OF DEBENTURE HOLDERS IS DRAWN TO APPENDIX A OF THE INDEPENDENT EXPERT’S REPORT, WHICH SETS OUT THE PROVISIONS OF SECTION 115 AND SECTION 164 OF THE COMPANIES ACT, No. 71 OF 2008 (THE “COMPANIES ACT”).

Introduction

All termsdefined in thecircular towhich thisnoticeof thegeneralmeetingofOriondebentureholders isattachedshallbearthesamemeaningsherein.

Theresolutionstoapprovetheschemearerequiredtobeapprovedbythedebentureholdersandshareholders.InviewofthecapitalstructureofOrion,whichcomprisesOrionlinkedunits,allOrionlinkedunitholdersarebothOrionshareholdersandOriondebentureholders.BoththenoticeofthegeneralmeetingofOriondebentureholders(“thisnotice”)andthenoticeoftheshareholders’schememeetingareapplicabletoeachandeveryOrionlinkedunitholder.

All theresolutionstoapprovetheschemewhicharerequiredtobepassedbythedebentureholdersandshareholders,areconditionalupononeanother,andwillonlybeofforceandeffectifallsuchresolutionsarepassed.Allthespecialresolutionswilltakeeffectontheschemeoperativedate.

Notice of general meeting of Orion debenture holders

Noticeisherebygiventhatageneralmeetingofthedebentureholdersofthecompany(“debenture holders”)willbeheldat10:00onThursday,14May2015attheregisteredofficeofthecompanyat16thFloor,OrionHouse, 49 Jorissen Street, Braamfontein (the “general meeting of Orion debenture holders”), for thepurposeofconsideringand,ifdeemedfit,passingwithorwithoutmodification,theresolutionssetoutbelow.

This notice includes resolutions upon which debenture holders are required to vote under the DebentureTrustDeed.Therecorddateonwhichdebentureholdersmustberecordedassuchinthesecuritiesregistermaintainedby the transfersecretaries for thepurposesofbeingentitled toattendandvoteat thegeneralmeetingofOriondebentureholdersisFriday,8May2015.

Intermsofsection62(3)(e)oftheCompaniesAct:

• adebentureholderwhoisentitledtoattendandvoteatthedebentureholder’schememeetinginrespectof thedebentureholder resolutions isentitled toappointaproxyor twoormoreproxies toattendandparticipateinandvoteatthegeneralmeetingofOriondebentureholdersintheplaceofthedebentureholder;and

• aproxyneednotbeashareholderordebentureholderofthecompany.

Kindlynotethat,intermsofsection63(1)oftheCompaniesAct,anypersonattendingorparticipatinginameetingofdebentureholdersmustpresentreasonablysatisfactory identificationandthepersonpresidingatthemeetingmustbereasonablysatisfiedthattherightofanypersontoparticipateinandvote(whetherasadebentureholderorasaproxyforadebentureholder)hasbeenreasonablyverified.Accordingly,alldebentureholders recorded in the registersof thecompanyon thevoting recorddatewillbe required toprovideidentificationsatisfactorytothechairmanofthegeneralmeetingofOriondebentureholdersinordertoparticipateinandvoteatthegeneralmeetingofOriondebentureholders.Formsofidentificationincludevalididentitydocuments,drivers’licencesandpassports.

InrespectofalltheresolutionstobepassedatthegeneralmeetingofOriondebentureholders,debentureholdershavetherightsundersection164oftheCompaniesAct,acopyofwhichisincludedasAppendixAtoAnnexure1ofthecircular.

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SPECIAL RESOLUTION NUMBER 1: Amendment of the Debenture Trust Deed.

“RESOLVEDTHAT,inordertomakeprovisionfor,andtofacilitatethedelinkingoftheOriondebenturesfromtheOrionordinaryshares,andthecancellationof thedebenturesandthecapitalisationof the issuepricethereof toOrion’sstatedcapital, theDebentureTrustDeed isamended in termsofclause24.2.2(itbeingrecordedthatthepriorwrittenconsentofOriontotheamendmenthasbeenobtainedintermsofclause24.2),byinsertingthefollowingclauseafterclause30oftheDebentureTrustDeed:

“31 DELINKING, CANCELLATION AND CAPITALISATION

Subject to a special resolution, the company may:

31.1 delink the ordinary shares and the debentures for the purpose of the cancellation and subsequent capitalisation as contemplated in 31.2 and 31.3;

31.2 subsequent to the delinking as contemplated in 31.1, cancel the debentures and terminate the deed, without payment to the debenture holders; and

31.3 subsequent to the delinking and cancellation as contemplated in 31.1 and 31.2, capitalise the issue price of the debentures from an accounting perspective for the purposes of financial reporting in accordance with IFRS to the company’s stated capital account attributable to the ordinary shares and to increase the contributed tax capital attributable to the ordinary shares by the issue price of the debentures.

Anymemberoftheboardofdirectorsofthecompanyandthetrusteeisfurtherauthorisedtoexecuteanysupplementaltrustdeedembodyingtheamendmentsreferredtoabove.”

SPECIAL RESOLUTION NUMBER 2: Delinking of the ordinary shares and debentures.

“RESOLVEDTHAT,followingandsubjecttothepassingofspecialresolutionnumber1andinordertofacilitatethecancellationof thedebentures, thecapitalisationof the issuepriceof thedebenturestoOrion’sstatedcapitalattributabletotheordinarysharesfromanaccountingperspectiveforthepurposesoffinancialreportinginaccordancewithIFRS,theincreaseofthecontributedtaxcapitalattributabletotheordinarysharesofOrionbytheissuepriceofthedebentures,thedelinkingofordinarysharesanddebenturescomprisingthelinkedunitsinissue,beandisherebyapproved.”

SPECIAL RESOLUTION NUMBER 3: Cancellation of the Orion debentures and the termination of the Orion Debenture Trust Deed.

“RESOLVEDTHAT,inaccordancewithsection114(1)(c)oftheCompaniesAct,andpursuanttosection 25BBoftheIncomeTaxAct,No.58of1962(“IncomeTaxAct”),followingandsubjecttothepassingofspecialresolutionnumbers1and2,andwitheffectimmediatelyaftertheMOIamendmentsarefiledwiththeCompaniesandIntellectualPropertyCommissionintermsofsection16(9)(b)(i),theOriondebenturesbe cancelled,withoutpaymenttoOriondebentureholdersandtheOrionDebentureTrustDeedbeterminated.”

SPECIAL RESOLUTION NUMBER 4: Capitalisation of Orion debentures to form part of Orion’s stated capital account.

“RESOLVEDTHAT,subjecttothepassingofspecialresolutionnumbers1,2and3,andwitheffectimmediatelyafterspecialresolutionnumber3takeseffect, theissuepriceofeachdebentureasreflectedinthebooksof account of Orion, be capitalised to form part of Orion’s stated capital account attributable to ordinarysharesfromanaccountingperspectiveforthepurposesoffinancialreportinginaccordancewithIFRS,ascontemplatedinsection25BB(8)oftheIncomeTaxAct.”

Voting requirement

Specialresolutionnumbers1,2,3and4requirethesupportofamajorityofnotlessthan75%ofthevotescastbydebentureholders,presentinpersonorbyproxy,tobeapproved.

Reason and effect

The reason forandeffectofspecial resolutionnumbers1,2,3and4are toapprove thedelinkingof theOrion ordinary shares and Orion debentures which presently comprise Orion linked units and thereafterthe cancellation of the Orion debentures and capitalisation of the Orion debentures to stated capital ascontemplatedinsection25BB(8)oftheIncomeTaxActinordertobealignedwiththepre-eminentcapitalstructure of international REIT’s, the capital structures of which consist entirely of equity, to simplify theaccountingtreatmentofOrion’scapitalstructureandtocomplywiththerequirementsoftheJSEregardingthecapitalstructureofREIT’s.ThedelinkingofOrionlinkedunitsandthecancellationoftheOriondebenturesandthecapitalisationofthevaluethereofwillhavenotaxconsequencesforOrionorOriondebentureholders.

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ORDINARY RESOLUTION NUMBER 1: General authority

“Resolvedthatanydirectorofthecompanyand/orthecompanysecretarybeandareherebyauthorisedtodoallsuchthingsandsignallsuchdocumentsasarenecessarytogiveeffecttothespecialresolutionsandordinaryresolutionproposedandpassedatthedebentureholders’schememeetingatwhichthisordinaryresolutionisproposed.”

Voting requirement

Ordinaryresolutionnumber1willrequirethesupportofamajorityofthedebentureholderspresentinpersonorbyproxy,tobeapproved.

WAIVER OF CONDITIONS

Itisspecificallyrecordedandagreedthatanyoftheconditionstowhicharesolutionmaybesubjectisandwillremaincapableofwaiverbytheboardofdirectorsofthecompanywithoutanyfurtherdebentureholderapprovalbeingrequired.

QUORUM

Aquorumfor thepurposesofconsidering thedebentureholderspecial resolutionsaboveshallconsistofthedebentureholderspresent inpersonorbyproxyandholding inaggregateaminimumof25%of thedebentures then in issue.Aquorum for thepurposesofconsideringdebentureholderordinary resolutionnumber1shallconsistofthedebentureholderspresentinpersonorbyproxyandholdinginaggregatenotlessthanone-tenthofthedebenturestheninissue.

DEBENTURE HOLDERS

General instructions

Debentureholdersareencouraged toattend, speakandvoteat thegeneralmeetingofOriondebentureholders.

Electronic participation

Thecompanyhasmadeprovisionfordebentureholdersor theirproxiestoparticipateelectronically in thegeneralmeetingofOriondebentureholdersbywayoftelephoneconferencing.ShouldyouwishtoparticipateinthegeneralmeetingofOriondebentureholdersbytelephoneconferencecallasaforesaid,you,oryourproxy,willberequiredtoadvisethecompanythereofbynolaterthan10:00onTuesday,12May2015,bysubmittingbyemailtothecompanysecretaryatcdkneale@mweb.co.zaorbyfaxto+27112526503,fortheattentionofCliveKneale,relevantcontactdetails,includinganemailaddress,cellularandlandlinenumberaswellasfulldetailsofthedebentureholder’stitletosecuritiesissuedbythecompanyandproofofidentity,intheformofcopiesofidentitydocumentsandsharecertificates(inthecaseofcertificatedlinkedunits)and(inthecaseofdematerialisedlinkedunits)writtenconfirmationfromthedebentureholder’sCSDPconfirmingthedebentureholder’stitletothedematerialisedlinkedunits.Uponreceiptoftherequiredinformation,thedebentureholderconcernedwillbeprovidedwithasecurecodeandinstructionstoaccesstheelectroniccommunicationduring thegeneralmeetingofOriondebentureholders.Debentureholdersmustnote thataccesstotheelectroniccommunicationwillbeattheexpenseofthedebentureholderswhowishtoutilisethefacility.

DebentureholdersandtheirappointedproxiesattendingbyconferencecallwillnotbeabletocasttheirvotesatthegeneralmeetingofOriondebentureholdersthroughthismedium.

Proxies and authority for representatives to act

Aformofproxyisattachedfortheconvenienceofanydebentureholderholdingcertificatedlinkedunits,whocannotattendthegeneralmeetingofOriondebentureholdersbutwishestoberepresentedthereat.

Theattachedformofproxyisonlytobecompletedbythosedebentureholderswhoare:

• holdinglinkedunitsincertificatedform;or• recordedonthecompany’ssub-registerindematerialisedelectronicformwith“ownname”registration.

All other beneficial owners who have dematerialised their units through a Central Securities DepositoryParticipant (“CSDP”) or broker and wish to attend the general meeting of Orion debenture holders, mustinstructtheirCSDPorbrokertoprovidethemwiththenecessaryletterofrepresentation,ortheymustprovidethe CSDP or broker with their voting instructions in terms of the relevant custody agreement entered intobetweenthemandtheCSDPorbroker.Thesedebentureholdersmustnotuseaformofproxy.

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Formsofproxymustbedepositedatthetransfersecretaries,ComputershareInvestorServicesProprietaryLimited,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)tobereceivedbynolaterthan10:00onTuesday,12May2015,failingwhichsuchproxyshallbeinvalid.

Aproxyshallbedeemedtohavetherighttodemandorjoinindemandingapoll.

Avotegiven inaccordancewith thetermsofaproxyshallbevalidnotwithstandingthepreviousdeathorincapacityofthedebentureholderconcernedorrevocationoftheproxyoroftheauthorityunderwhichtheproxywasexecutedorthetransferofdebenturesinrespectofwhichtheproxywasgiven,providedthatnointimationinwritingofsuchdeath,incapacityorrevocationshallhavebeenreceivedbythecompanyattheofficeofitstransfersecretariesmorethan,andthatthetransferhasbeengiveneffecttobythecompanylessthan,30(thirty)minutesbeforethecommencementofthegeneralmeetingofOriondebentureholders.

Acompany that is adebentureholder,wishing toattendandparticipateat thegeneralmeetingofOriondebentureholdersshouldensurethataresolutionauthorisingarepresentativetosoattendandparticipateatthegeneralmeetingofOriondebentureholdersonitsbehalfispassedbyitsdirectors.Resolutionsauthorisingrepresentativesintermsofsection57(5)oftheCompaniesActmustbelodgedwiththecompany’stransfersecretariespriortothegeneralmeetingofOriondebentureholders.

The company does not accept responsibility and will not be held liable for any failure on the part of the CSDP or broker of a dematerialised unitholder to notify such debenture holder of the general meeting of Orion debenture holders or any business to be conducted thereat.

GENERAL NOTES

1. AmemberentitledtoattendandvoteatthegeneralmeetingofOriondebentureholders,mayappointaproxytoattend,speakandvoteinhisorherstead.Aproxyneednotbeamemberofthecompany.

2. Allformsofproxyorotherinstrumentsofauthoritymustbedepositedwiththetransfersecretaries,soastobereceivednolaterthan10:00onTuesday,12May2015,failingwhichtheproxyshallbeinvalid.Debentureholderswhoarecompaniesorotherbodiescorporatemay,byresolutionofitsdirectorsorothergoverningbody,authoriseanypersontoactas itsrepresentativeat thegeneralmeetingof theOriondebentureholders.

3. Debenture holders who have not dematerialised their linked units and own-name dematerialisedunitholderswhoareunabletoattendthegeneralmeetingoftheOriondebentureholdersandwishtoberepresentedthereat,mustcompletetheattachedformofproxyinaccordancewiththeinstructionsthereinandreturnittothetransfersecretaries,soastobereceivednolaterthan10:00Tuesday,12 May 2015.

4. Debentureholderswhohavedematerialised their linkedunitswithaCSDPorbroker,other thanwithown-name registration, should advise their CSDP or broker with their voting instruction in terms ofthe agreement entered into between them and their CSDP or broker. Linked unitholders who havedematerialisedtheirlinkedunitsandwishtoattendthegeneralmeetingofOriondebentureholdersmustcontact theirCSDPorbrokerwhowill furnishthemwiththenecessaryauthority toattendthegeneralmeetingoftheOriondebentureholders.

5. Debentureholderswhohavedematerialised their linkedunits,other thanwithown-nameregistration,mustnotreturntheformofproxytothetransfersecretaries.TheirinstructionsmustbesenttotheirCSDPorbrokerforaction.

6. Onashowofhands,anypersonpresentandentitledtovote,asadebentureholderorasaproxy,shallhaveonlyonevote.

7. Onapoll,anydebentureholderorhisproxyshallhaveonevoteforeverydebentureofwhichheistheregisteredholderorrepresentative.

Byorderoftheboard

Orion Real Estate Limited13April2015

Registered office 16thFloorOrionHouse49JorissenStreetBraamfontein

ORION REAL ESTATE LIMITED(IncorporatedintheRepublicofSouthAfrica)

(Registrationnumber1997/021085/06)Sharecode:ORE ISIN:ZAE000075651

(“Orion”or“thecompany”)

FORM OF PROXY – GENERAL MEETING OF ORION DEBENTURE HOLDERS

THIS FORM OF PROXY IS ONLY FOR USE BY:

• registereddebentureholderswhohavenotyetdematerialisedtheirdebentures;• registereddebentureholderswhohavealreadydematerialisedtheirdebenturesandwhichdebenturesareregisteredintheirown

namesinthecompany’ssub-register.

Forcompletionbytheaforesaidregistereddebentureholderswhoareunabletoattendtheschememeetingofdebentureholdersofthecompanytobeheldattheofficeofthecompanyat16thFloor,OrionHouse,49 JorissenStreet,Braamfonteinat10:00onThursday,14 May2015(“thegeneralmeetingofOriondebentureholders”).

Aseparateformofproxyhasbeenincludedforusebyshareholderswhoareunabletoattendthegeneralmeetingofshareholdersofthecompanytobeheldattheofficeofthecompanyat16thFloor,OrionHouse,49JorissenStreet,Braamfonteinatthelaterof10:30 or10minutesafterthecompletionofthegeneralmeetingofOriondebentureholders.

Ifyouareadematerialiseddebentureholder,otherthanwith“ownname”registration,donotusethisform.Dematerialiseddebentureholders,otherthanwith“ownname”registration,shouldprovideinstructionstotheirappointedCentralSecuritiesDepositoryParticipant(“CSDP”)orbrokerintheformasstipulatedintheagreemententeredintobetweenthedebentureholderandtheCSDPorbroker.

I/We(FULLNAMESINBLOCKLETTERSPLEASE)of(Address)Telephonenumber Cellphonenumber

beingtheholderof Oriondebenturesherebyappoint:

1. orfailinghim,

2. orfailinghim,

3.thechairmanofthegeneralmeetingofOriondebentureholdersasmy/ourproxytoattendandspeakandtovoteforme/usandonmy/ourbehalfatthegeneralmeetingofOriondebentureholdersandatanyadjournmentorpostponementthereof,forthepurposeofconsideringand,ifdeemedfit,passing,withorwithoutmodification,theresolutionstobeproposedatthegeneralmeetingofOriondebentureholders,and,onapoll,tovoteontheresolutionsinrespectofthedebenturesregisteredinmy/ourname(s):

Pleaseindicatewithan“X”intheappropriatespacesbelowhowyouwishyourvotestobecast.Unlessthisisdonetheproxywillvoteashe/shethinksfit.

Number of votes*In favour of *Against *Abstain

Debenture holder special resolution number 1: AmendmentoftheDebentureTrustDeedDebenture holder special resolution number 2: DelinkingoflinkedunitsDebenture holder special resolution number 3: CancellationofdebenturesandterminationoftheDebentureTrustDeedDebenture holder special resolution number 4: CapitalisationofdebenturestoformpartofstatedcapitalaccountDebenture holder ordinary resolution number 1: Generalauthority

One vote per debenture held by debenture holders recorded in the register on the voting record date.

Unlessotherwiseinstructedmyproxymayvoteorabstainfromvotingashe/shethinksfit.

Signedthis dayof 2015

Signature(s)

(Statecapacityandfullname) Assistedbyme(whereapplicable)

AdebentureholderentitledtoattendandvoteatthegeneralmeetingofOriondebentureholdersisentitledtoappointaproxytoattend,speakand,onapoll,voteinhis/herstead.Aproxyneednotbeamemberofthecompany.Eachdebentureholderisentitledtoappointoneormoreproxiestoattend,speakand,onapoll,voteinplaceofthatdebentureholderatthegeneralmeetingofOriondebentureholders.

FormsofproxymustbedepositedatComputershareInvestorServicesProprietaryLimited,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)tobereceivedbynolaterthan10:00onTuesday,12May2015.

Please read notes on the reverse side hereof.

NOTES TO THE FORM OF PROXY:

1. Onlydebentureholderswhoareregisteredintheregisterofthecompanyundertheirownnameonthedateonwhichdebentureholdersmustberecordedassuchintheregistermaintainedbythetransfersecretaries,ComputershareInvestorServicesProprietaryLimitedbeingFriday,8May2015(the“voting record date”),maycompleteaformofproxyorattendthegeneralmeetingofOriondebentureholders.Thisincludesdebentureholderswhohavenotdematerialisedtheirlinkedunitsorwhohavedematerialisedtheirlinkedunitswith“ownname”registration.ThepersonwhosenamestandsfirstontheformofproxyandwhoispresentatthegeneralmeetingofOriondebentureholderswillbeentitledtoactasproxytotheexclusionofthosewhonamesfollow.Aproxyneednotbealinkedunitholderofthecompany.

2. CertificateddebentureholderswishingtoattendthegeneralmeetingofOriondebentureholdershavetoensurebeforehandwiththetransfersecretariesofthecompany(beingComputershareInvestorServicesProprietaryLimited)thattheirsecuritiesareregisteredintheirownname.

3. Beneficialdebentureholderswhosedebenturesarenotregisteredintheir“ownname”,butinthenameofanother,forexample,anominee,maynotcompleteaproxyform,unlessaformofproxyisissuedtothembyaregistereddebentureholderandtheyshouldcontacttheregistereddebentureholderforassistanceinissuinginstructionsonvotingtheirshares,orobtainingaproxytoattend,speakand,onapoll,voteatthegeneralmeetingofOriondebentureholders.

4. Dematerialised debenture holders who have not elected “own name” registration in the register of the company through a Central Securities DepositoryParticipant (“CSDP”)andwhowish toattend thegeneralmeetingofOriondebentureholders,must instruct theCSDPorbroker toprovide themwith thenecessaryauthoritytoattend.

5. Dematerialiseddebentureholderswhohavenotelected“ownname”registrationintheregisterofthecompanythroughaCSDPandwhoareunabletoattend,butwishtovoteatthegeneralmeetingofOriondebentureholders,musttimeouslyprovidetheirCSDPorbrokerwiththeirvotinginstructionsintermsofthecustodyagreemententeredintobetweenthatlinkedunitholderandtheCSDPorbroker.

6. Adebentureholdermayinsertthenameofaproxyorthenamesoftwoormorealternativeproxiesofthedebentureholder’schoiceinthespace,withorwithoutdeleting“thechairmanofthegeneralmeetingofOriondebentureholders”.ThepersonwhosenamestandsfirstontheformofproxyandwhoispresentatthegeneralmeetingofOriondebentureholderswillbeentitledtoactasproxytotheexclusionofthosewhosenamesfollow.

7. Avotegiveninaccordancewiththetermsofaproxyshallbevalidnotwithstandingthepreviousdeathorincapacityofthedebentureholderconcernedorrevocationoftheproxyoroftheauthorityunderwhichtheproxywasexecutedorthetransferofdebenturesinrespectofwhichtheproxywasgiven,providedthatnointimationinwritingofsuchdeath, incapacityorrevocationshallhavebeenreceivedbythecompanyattheofficeof itstransfersecretariesmorethan,andthatthetransferhasbeengiveneffecttobythecompanylessthan,30(thirty)minutesbeforethecommencementofthegeneralmeetingofOriondebentureholders.

8. Therevocationofaproxyappointmentconstitutesacompleteandfinalcancellationoftheproxy’sauthoritytoactonbehalfoftherelevantdebentureholderasofthelaterofthedate:

8.1 statedintherevocationinstrument,ifany;or

8.2 uponwhichtherevocationinstrumentisdeliveredtotheproxyandtherelevantcompanyasrequiredinsection58(4)(c)(ii)oftheCompaniesAct,71of 2008,asamended(the“Companies Act”).

9. Shouldthe instrumentappointingaproxyorproxieshavebeendeliveredtothecompany,as longasthatappointmentremains ineffect,anynoticethat isrequiredbytheCompaniesActorthecompany’sMemorandumofIncorporationtobedeliveredbythecompanytothedebentureholdermustbedeliveredbythecompanyto:

9.1 thedebentureholder;or

9.2 theproxyorproxiesifthedebentureholderhasinwritingdirectedtherelevantcompanytodosoandhaspaidanyreasonablefeechargedbythecompanyfordoingso.

10. Aproxy isentitled toexercise,orabstain fromexercising,anyvoting rightof the relevantdebentureholderwithoutdirection,except to theextent that theDebentureTrustDeedand/orMemorandumofIncorporationofthecompanyortheinstrumentappointingtheproxyprovideotherwise.

11. Ifthecompanyissuesaninvitationtodebentureholderstoappointoneormorepersonsnamedbythecompanyasaproxy,orsuppliesaformofinstrumentappointingaproxy:

11.1 suchinvitationmustbesenttoeverydebentureholderwhoisentitledtoreceivenoticeofthemeetingatwhichtheproxyisintendedtobeexercised;

11.2 thecompanymustnotrequirethattheproxyappointmentbemadeirrevocable;and

11.3 theproxyappointmentremainsvalidonlyuntiltheendoftherelevantmeetingatwhichitwasintendedtobeused,unlessrevokedascontemplatedinsection58(5)oftheCompaniesAct.

12. Anyalterationorcorrectionmadetothisformofproxymustbeinitialledbythesignatory/ies.Adeletionofanyprintedmatterandthecompletionofanyblankspace(s)neednotbesignedorinitialled.

13. Documentaryevidenceestablishing theauthorityofapersonsigning this formofproxy ina representativecapacitymustbeattached to this formunlesspreviouslyrecordedbythetransfersecretariesofthecompanyorwaivedbythechairmanofthegeneralmeetingofOriondebentureholders.

14. Aminormustbeassistedbyhis/herparent/guardianunlesstherelevantdocumentsestablishinghis/herlegalcapacityareproducedorhavebeenregisteredbythetransfersecretaries.

15. AcompanyholdinglinkedunitsinthecompanythatwishestoattendandparticipateatthegeneralmeetingofOriondebentureholdersshouldensurethataresolutionauthorisingarepresentativetoactispassedbyitsdirectors.Resolutionsauthorisingrepresentativesintermsofsection57(5)oftheCompaniesActmustbelodgedwiththecompany’stransfersecretariespriortothegeneralmeetingofOriondebentureholders.

16. Wheretherearejointholdersofdebenturesanyoneofsuchpersonsmayvoteatanymeetinginrespectofsuchlinkedunitsasifheweresolelyentitledthereto;butifmorethanoneofsuchjointholdersbepresentorrepresentedatthemeeting,thatoneofthesaidpersonswhosenameappearsfirstintheregisterofdebentureholdersofsuchsharesorhisproxy,asthecasemaybe,shallalonebeentitledtovoteinrespectthereof.

17. Onashowofhands,anypersonpresentandentitledtovote,asadebentureholderorasaproxy,shallhaveonlyonevote.Onapoll,anydebentureholderorhisproxyshallhaveonevoteforeverydebentureofwhichheistheregisteredholderorrepresentative.

18. ThechairmanofthegeneralmeetingofOriondebentureholdersmayrejectoracceptanyproxywhichiscompletedand/orreceivedotherthaninaccordancewiththeinstructions,providedthatheshallnotacceptaproxyunlessheissatisfiedastothematterinwhichadebentureholderwishestovote.

19. Aproxymaynotdelegatehis/herauthoritytoactonbehalfofthedebentureholder,toanotherperson.

20. Adebentureholder’sinstructiontotheproxymustbeindicatedbytheinsertionoftherelevantnumberofdebenturestobevotedonbehalfofthatdebentureholder in the appropriate space provided. Failure to comply with the above will be deemed to authorise the chairperson of the general meeting of Oriondebentureholders,ifthechairpersonistheauthorisedproxy,tovoteinfavouroftheresolutionsatthegeneralmeetingofOriondebentureholdersorotherproxytovoteortoabstainfromvotingatthegeneralmeetingofOriondebentureholdersashe/shedeemsfit,inrespectofthedebenturesconcerned.Adebentureholderortheproxyisnotobligedtouseallthevotesexercisablebythedebentureholderortheproxy,butthetotalofvotescastinrespectwhereofabstentionisrecordedmaynotexceedthetotalofthevotesexercisablebythedebentureholderortheproxy.

21. Itisrequestedthatthisformofproxybelodgedorpostedorfaxedtothetransfersecretaries,ComputershareInvestorServicesProprietaryLimited,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)tobereceivedbynolaterthan10:00onTuesday,12May2015.

22. Aquorumforthepurposesofconsidering:

22.1 thedebentureholders’ordinaryresolutionshallconsistofdebentureholderspresentinpersonorrepresentedbyproxyandholdinginaggregatenotlessthanone-tenthofthedebenturestheninissue;

22.2 thedebentureholders’special resolutionsshallconsistofdebentureholderspresent inpersonorrepresentedbyproxyandholding inaggregateaminimumof25%ofthedebenturestheninissue.

23. ThisformofproxymaybeusedatanyadjournmentorpostponementofthegeneralmeetingofOriondebentureholders,includinganypostponementduetoalackofquorum,unlesswithdrawnbythedebentureholder.

24. Theaforegoingnotescontainasummaryoftherelevantprovisionsofsection58oftheCompaniesAct,asrequiredintermsofthatsection.

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ORION REAL ESTATE LIMITED(IncorporatedintheRepublicofSouthAfrica)

(Registrationnumber1997/021085/06)Sharecode:ORE ISIN:ZAE000075651

(“Orion”or“thecompany”)

NOTICE OF GENERAL MEETING OF ORION SHAREHOLDERS

THE ATTENTION OF SHAREHOLDERS IS DRAWN TO APPENDIX A OF THE INDEPENDENT EXPERT’S REPORT, WHICH SETS OUT THE PROVISIONS OF SECTION 115 AND SECTION 164 OF THE COMPANIES ACT, NO. 71 OF 2008 (THE “COMPANIES ACT”).

Introduction

AlltermsdefinedinthecirculartowhichthisnoticeofthegeneralmeetingofOrionshareholdersisattachedshallbearthesamemeaningsherein.

Theresolutionstoapprovetheschemearerequiredtobeapprovedbythedebentureholdersandshareholders.InviewofthecapitalstructureofOrion,whichcomprisesOrionlinkedunits,allOrionlinkedunitholdersareboth Orion shareholders and Orion debenture holders. Both the notice of the general meeting of Orionshareholders(“thisnotice”)andthenoticeofthegeneralmeetingofOriondebentureholdersareapplicabletoeachandeveryOrionlinkedunitholder.

All theresolutionstoapprovetheschemewhicharerequiredtobepassedbythedebentureholdersandshareholders,areconditionalupononeanother,andwillonlybeofforceandeffectifallsuchresolutionsarepassed.Allthespecialresolutionswilltakeeffectontheschemeoperativedate.

Notice of general meeting of Orion shareholders

Noticeisherebygiventhatageneralmeetingoftheshareholdersofthecompany(“shareholders”)willbeheldatthelaterof10:30or10minutesafterthecompletionofthegeneralmeetingofOriondebentureholdersonThursday,14May2015attheregisteredofficeofthecompanyat16thFloor,OrionHouse,49JorissenStreet,Braamfontein(the“general meeting of Orion shareholders”),forthepurposeofconsideringand,ifdeemedfit,passingwithorwithoutmodification,theresolutionssetoutbelow.

TherecorddateonwhichOrionshareholdersmustberecordedassuchinthesecuritiesregistermaintainedbythetransfersecretariesofOrionforthepurposeofbeingentitledtoattendandvoteatthegeneralmeetingofOrionshareholdersisFriday,8May2015.Accordingly,thelastdaytotradetobeeligibletoattendandvoteatthegeneralmeetingofOrionshareholdersisThursday,30April2015.

Intermsofsection62(3)(e)oftheCompaniesAct:

• ashareholderwhoisentitledtoattendandvoteatthegeneralmeetingofOrionshareholdersinrespectoftheshareholderresolutionsisentitledtoappointaproxyortwoormoreproxiestoattend,participateinandvoteatthegeneralmeetingofOrionshareholdersintheplaceoftheshareholder;and

• aproxyneednotbeashareholderordebentureholderofthecompany.

Kindlynote that, in termsof section63(1)of theCompaniesAct,anypersonattendingorparticipating inameetingofshareholdersmustpresent reasonablysatisfactory identificationand thepersonpresidingatthemeetingmustbereasonablysatisfiedthattherightofanypersontoparticipateinandvote(whetherasashareholderorasaproxyforashareholder)hasbeenreasonablyverified.Accordingly,allshareholdersrecordedintheregistersofthecompanyonthevotingrecorddatewillberequiredtoprovideidentificationsatisfactorytothechairmanofthegeneralmeetingofOrionshareholdersinordertoparticipateinandvoteatthegeneralmeetingofOrionshareholders.Formsofidentificationincludevalididentitydocuments,drivers’licencesandpassports.

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InrespectofallresolutionstobepassedatthegeneralmeetingofOrionshareholders,shareholdershavetherightsundersection164oftheCompaniesAct,acopyofwhichissetoutinAppendixAtoAnnexure1ofthe circular.

SPECIAL RESOLUTION NUMBER 1: Delinking of Orion ordinary shares and Orion debentures.

“RESOLVEDTHAT,inordertofacilitatethecancellationofthedebenturesandthecapitalisationoftheirissueprice to Orion’s stated capital attributable to the ordinary shares from an accounting perspective for thepurposesof financial reporting inaccordancewith IFRS, thedelinkingofOrionordinarysharesandOriondebenturescomprisingtheOrionlinkedunitsinissue,beandisherebyapproved.”

SPECIAL RESOLUTION NUMBER 2: Cancellation of Orion debentures and the termination of the Orion Debenture Trust Deed.

“RESOLVEDTHAT,inaccordancewiththeprovisionsofsection114(1)(c)oftheCompaniesAct,andpursuanttosection25BBoftheIncomeTaxAct,followingandsubjecttothepassingofspecialresolutionnumber6,andwitheffectimmediatelyaftertheMOIamendmentsarefiledwiththeCompaniesandIntellectualPropertyCommissionintermsofsection16(9)(b)(i)pursuanttospecialresolutionnumber6,theOriondebenturesarecancelledwithoutpaymenttoOriondebentureholdersandtheOrionDebentureTrustDeedisterminated.”

SPECIAL RESOLUTION NUMBER 3: Capitalisation of Orion debentures to form part of Orion’s stated capital

“RESOLVEDTHAT,subjecttothepassingofspecialresolutionnumber6,andwitheffectimmediatelyafterspecialresolutionnumber6takeseffect,theissuepriceofeachOriondebentureasreflectedinthebooksofaccountofOrion,becapitalisedtoOrion’sstatedcapitalaccountattributabletoordinarysharesfromanaccountingperspectiveforthepurposesoffinancialreportinginaccordancewithIFRS,ascontemplatedinsection25BBoftheIncomeTaxAct.”

Reason and effect

Thereasonforandeffectofspecialresolutionnumbers1,2and3istoapprovethedelinkingofparvaluesharesandtheOriondebentureswhichpresentlycompriseOrionlinkedunitsandthereafterthecancellationof theOriondebentures, thecapitalisationofanamountequal to the issuepriceof theOriondebenturesto stated capital attributable to the ordinary shares from an accounting perspective and the increase ofthe contributed tax capital attributable to theordinary sharesby the issue price of eachcancelled Oriondebenture as contemplated in section 25BB(8) of the Income Tax Act in order to be aligned with thepre-eminentcapitalstructureofinternationalREIT’s,thecapitalstructuresofwhichconsistentirelyofequity,tosimplifytheaccountingtreatmentofOrion’scapitalstructureandtocomplywiththerequirementsoftheJSEregardingthecapitalstructureofREIT’s.ThedelinkingoftheOrionlinkedunitsandthecancellationoftheOriondebentureswillbetaxneutralforOrionandOrionshareholders,onthebasisthattheexpenditureincurredbyeachshareholderofanordinarysharewillbeequaltoanamountoftheexpenditureincurredinrespectoftheacquisitionofeachlinkedunit.TheissuepriceofeachcancelledOriondebenturewillbeaddedtothecontributedtaxcapitalattributabletotheordinarysharesofOrion.

SPECIAL RESOLUTION NUMBER 4: Conversion of the authorised Orion par value shares to Orion no par value shares.

“RESOLVEDTHAT,intermsofregulation31(6)oftheCompaniesAct,andsubjecttothepassingandsubsequentfilingofspecialresolutionnumbers5and6withtheCompaniesandIntellectualPropertyCommission,theexistingauthorisedordinarysharecapitalofR20000000,dividedinto2000000000ordinarysharesofaparvalueof1centeach,beconvertedinto2000000000ordinarysharesofnoparvalue.”

SPECIAL RESOLUTION NUMBER 5: Conversion of the issued Orion par value shares to Orion no par value shares.

“RESOLVEDTHAT,intermsofregulation31(6)oftheCompaniesAct,andsubjecttothepassingandfilingofspecialresolutionnumbers4and6withtheCompaniesandIntellectualPropertyCommission,theexistingissuedordinarysharecapitalofR6306987,dividedinto630698688ordinarysharesofaparvalueof1centeach,beconvertedinto630398688ordinarysharesofnoparvalue.”

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Reason and effect

Thereasonforandeffectofspecialresolutionnumbers4and5,istoconvertalltheauthorisedandissuedordinarysharesinthecompanyofaparvalueof1centeachintoordinarysharesofnoparvalueinaccordancewith regulation 31(6) and (7) of the Companies Act, in order to align the existing capital structure of thecompanywiththeCompaniesAct.

SPECIAL RESOLUTION NUMBER 6: Amendment of Orion’s existing MOI

“RESOLVEDTHAT,intermsofsections16(1)(c)(i)(aa)and16(1)(c)(ii)oftheCompaniesAct,andwitheffectonthedateonwhichtheformCoR15.2(NoticeofamendmentofMemorandumofIncorporation)isfiledwiththeCompaniesandIntellectualPropertyCommission,theexistingMoIofOrionbeamendedintherespectssetoutinAnnexure3tothecircular.”

Reason and effect

Thereasonforandeffectofspecialresolutionnumber6istoamendtheMoIofthecompanytogiveeffecttothevariousspecialresolutionswhicharetobepassedatthegeneralmeetingofOrionshareholdersandnotably,tomakeprovisionforcompliancebythecompanywiththeprovisionsofsection25BBoftheIncomeTaxActandtherequirementssetbytheJSEforthecompanytoqualifyasaREIT.

OrionshareholdersareadvisedthattheCompaniesActaffordsrelieftoholdersofaclassofshareswhereacompany’smemorandumofincorporationisamendedbyalteringthepreferences,rights,limitationsorothertermsofsuchclassofshares inanymannermaterialandadverse to therightsor interestsof theholdersthereof,providedthattheholderstakeappropriateactionasprescribedinsection37(8)andsection164oftheCompaniesAct.InordertoenableOrionshareholderstomakeanassessmentofwhethertheyconsidertheirrightsorintereststobeaffectedasaforesaid,theexistingMOIwiththeproposedamendmentsmarkedupisavailableforinspectionatOrion’sregisteredofficeduringnormalbusinesshoursatanytimepriortothecommencementofthegeneralmeetingofOrionshareholders.

Voting requirement

Special resolution numbers1 to 6 require the support of at least 75%of the votes castby shareholders,presentinpersonorbyproxy,tobeapproved.

ORDINARY RESOLUTION NUMBER 1: General authority

“Resolvedthatanydirectorofthecompanyand/orthecompanysecretarybeandisherebyauthorisedtodoallsuchthingsandtosignallsuchdocumentsasarenecessarytogiveeffecttothespecialresolutionsandordinaryresolutionproposedandpassedatthegeneralmeetingofOrionshareholdersatwhichthisordinaryresolutionisproposed.”

Voting requirement

Shareholderordinaryresolutionnumber1willrequirethesupportofamajorityoftheshareholders,presentinpersonorbyproxy,tobeapproved.

WAIVER OF CONDITIONS

Itisspecificallyrecordedandagreedthatanyoftheconditionstowhicharesolutionmaybesubjectisandwillremaincapableofwaiverbytheboardofdirectorsofthecompanywithoutanyfurthershareholderapprovalbeingrequired.

QUORUM

Aquorumforthepurposesofconsideringtheshareholderresolutionsaboveshallconsistofthreeshareholdersofthecompanypersonallypresent(andiftheshareholderisabodycorporate,itmustberepresented)andentitledtovoteatthegeneralmeetingofOrionshareholders.Inaddition,aquorumshallcomprise25%ofallthevotingrightsthatareentitledtobeexercisedbyshareholdersinrespectofeachmattertobedecidedatthegeneralmeetingofOrionshareholders.

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SHAREHOLDERS

General instructions

Shareholdersareencouragedtoattend,speakandvoteatthegeneralmeetingofOrionshareholders.

Electronic participation

ThecompanyhasmadeprovisionforshareholdersortheirproxiestoparticipateelectronicallyinthegeneralmeetingofOrionshareholdersbywayoftelephoneconferencing.ShouldyouwishtoparticipateinthegeneralmeetingofOrionshareholdersbytelephoneconferencecallasaforesaid,you,oryourproxy,willberequiredtoadvisethecompanythereofbynolaterthan10:30onTuesday,12May2015,bysubmittingbyemailtothecompanysecretaryatcdkneale@mweb.co.zaorby fax to+27112526503, for theattentionofCliveKneale, relevant contact details, including an email address, cellular number and landline as well as fulldetails of the shareholder’s title to securities issued by the company and proof of identity, in the form ofcopiesofidentitydocumentsandsharecertificates(inthecaseofcertificatedlinkedunits)and(inthecaseofdematerialisedlinkedunits)writtenconfirmationfromtheshareholder’sCSDPconfirmingtheshareholder’stitletothedematerialisedlinkedunits.Uponreceiptoftherequiredinformation,theshareholderconcernedwillbeprovidedwithasecurecodeandinstructionstoaccesstheelectroniccommunicationduringthegeneralmeetingofOrionshareholders.Shareholdersmustnotethataccesstotheelectroniccommunicationwillbeattheexpenseoftheshareholderswhowishtoutilisethefacility.

ShareholdersandtheirappointedproxiesattendingbyconferencecallwillnotbeabletocasttheirvotesatthegeneralmeetingofOrionshareholdersthroughthismedium.

Proxies and authority for representatives to act

Aformofproxy isattachedfor theconvenienceofanyshareholderholdingcertificatedunits,whocannotattendthegeneralmeetingofOrionshareholdersbutwishestoberepresentedthereat.

Theattachedformofproxyisonlytobecompletedbythoseshareholderswhoare:

• holdingunitsincertificatedform;or• recordedonthecompany’ssub-registerindematerialisedelectronicformwith“ownname”registration.

All other beneficial owners who have dematerialised their units through a Central Securities DepositoryParticipant(“CSDP”)orbrokerandwishtoattendthegeneralmeetingofOrionshareholders,mustinstructtheirCSDPorbroker toprovidethemwiththenecessary letterofrepresentation,or theymustprovidetheCSDPorbrokerwiththeirvotinginstructionsintermsoftherelevantcustodyagreemententeredintobetweenthemandtheCSDPorbroker.Theseshareholdersmustnotuseaformofproxy.

Formsofproxymustbedepositedatthetransfersecretaries,ComputershareInvestorServicesProprietaryLimited,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)tobereceivedbynolaterthan10:30onTuesday,12May2015.Anyshareholderwhocompletesandlodgesaformofproxywillneverthelessbeentitledtoattend,speakandvoteinpersonatthegeneralmeetingofOrionshareholdersshouldtheshareholderdecidetodoso.

Acompanythatisashareholder,wishingtoattendandparticipateatthegeneralmeetingofOrionshareholdersshouldensurethataresolutionauthorisingarepresentativetosoattendandparticipateatthegeneralmeetingofOrionshareholdersonitsbehalfispassedbyitsdirectors.Resolutionsauthorisingrepresentativesintermsofsection57(5)oftheCompaniesActmustbelodgedwiththecompany’stransfersecretariespriortothegeneralmeetingofOrionshareholders.

The company does not accept responsibility and will not be held liable for any failure on the part of the CSDP or broker of a dematerialised unitholder to notify such shareholder of the general meeting of Orion shareholders or any business to be conducted thereat.

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DEBENTURE HOLDERS

General instructions

DebentureholdersareencouragedtoattendandspeakatthegeneralmeetingofOrionshareholders.

Electronic participation

ThecompanyhasmadeprovisionforitsdebentureholdersortheirproxiestoparticipateelectronicallyinthegeneralmeetingofOrionshareholdersbywayoftelephoneconferencing.ShouldyouwishtoparticipateinthegeneralmeetingofOrionshareholdersbytelephoneconferencecallasaforesaid,you,oryourproxy,willberequiredtoadvisethecompanythereofbynolaterthan10:30onTuesday,12May2015,bysubmittingbyemailtothecompanysecretaryatcdkneale@mweb.co.zaorbyfaxto+27112526503,fortheattentionofCliveKneale, relevantcontactdetails, includinganemailaddress,cellularnumberand landlineaswellasfulldetailsofthedebentureholder’stitletosecuritiesissuedbythecompanyandproofofidentity,intheformofcopiesofidentitydocumentsanddebenturecertificates(inthecaseofcertificateddebentures)and(inthecaseofdematerialiseddebentures)writtenconfirmationfromthedebentureholder’sCSDPconfirmingthedebentureholder’stitletothedematerialiseddebentures.Uponreceiptof therequiredinformation,thedebentureholderconcernedwillbeprovidedwithasecurecodeandinstructionstoaccesstheelectroniccommunicationduringthegeneralmeetingofOrionshareholders.Debentureholdersmustnotethataccesstotheelectroniccommunicationwillbeattheexpenseofthedebentureholderwhowishestoutilisethefacility.

Proxies and authority for representatives to act

Duetothecompany’slinkedunitstructure,itsshareholdersarealsoitsdebentureholdersandthematterstobe voted onat thegeneralmeetingofOrion shareholdersarematters onwhich shareholdersandnotdebentureholdersareentitledtovote.

Debentureholderswishingtoappointaproxyortwoormoreproxiestoattendandparticipate(butnotvote)inthegeneralmeetingofOrionshareholdersmaycontactthecompanysecretaryatcdkneale@mweb.co.za,toobtainsuchformofproxy.

The company does not accept responsibility and will not be held liable for any failure on the part of the CSDP or broker of a dematerialised debenture holder to notify such debenture holder of the general meeting of Orion shareholders or any business to be conducted thereat.

GENERAL NOTES

1. AmemberentitledtoattendandvoteatthegeneralmeetingofOrionshareholdersmayappointaproxytoattend,speakandvoteinhisorherstead.Aproxyneednotbeamemberofthecompany.

2. Allformsofproxyorotherinstrumentsofauthoritymustbedepositedwiththetransfersecretaries,soastobereceivednolaterthan10:00onTuesday,12May2015.Shareholderswhoarecompaniesorotherbodiescorporatemay,byresolutionofitsdirectorsorothergoverningbody,authoriseanypersontoactasitsrepresentativeatthegeneralmeetingofOrionshareholders.

3. Shareholderswhohavenotdematerialisedtheirlinkedunitsandown-namedematerialisedunitholderswhoareunabletoattendthegeneralmeetingofOrionshareholdersandwishtoberepresentedthereat,mustcompletetheattachedformofproxyinaccordancewiththeinstructionsthereinandreturnittothetransfersecretaries,soastobereceivednolaterthan10:00onTuesday,12May2015.

4. ShareholderswhohavedematerialisedtheirlinkedunitswithaCSDPorbroker,otherthanwithown-nameregistration,shouldadvisetheirCSDPorbrokerwiththeirvotinginstructionintermsoftheagreemententeredintobetweenthemandtheirCSDPorbroker.Linkedunitholderswhohavedematerialisedtheirlinked units and wish to attend the general meeting of Orion shareholders must contact their CSDPor broker who will furnish them with the necessary authority to attend the general meeting of Orionshareholders.

5. Shareholderswhohavedematerialisedtheir linkedunits,other thanwithown-nameregistration,mustnotreturntheformofproxytothetransfersecretaries.TheirinstructionsmustbesenttotheirCSDPorbrokerforaction.

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6. Onashowofhands,everymemberpresentinpersonoreveryproxyrepresentingashareholder,shallhaveonlyonevote,irrespectiveofthenumberoflinkedunitsheorsheholds.

7. Onapoll,everyshareholderpresentinpersonorrepresentedbyproxyshallhaveonevoteforeveryshareheldbysuchshareholder.

Byorderoftheboard

Orion Real Estate Limited13April2015

Registered office 16th FloorOrionHouse49JorissenStreetBraamfontein

PRINTEDBYINCE(PTY)LTD REF.JOB007287

ORION REAL ESTATE LIMITED(IncorporatedintheRepublicofSouthAfrica)

(Registrationnumber1997/021085/06)Sharecode:ORE ISIN:ZAE000075651

(“Orion”or“thecompany”)

FORM OF PROXY – GENERAL MEETING OF ORION SHAREHOLDERS

THIS FORM OF PROXY IS ONLY FOR USE BY:

• registeredshareholderswhohavenotyetdematerialisedtheirshares;• registeredshareholderswhohavealreadydematerialisedtheirshareandwhichsharesareregisteredintheirownnamesinthe

company’ssub-register.Forcompletionbytheaforesaidregisteredshareholderswhoareunabletoattendthegeneralmeetingofshareholdersofthecompanytobeheldattheofficeofthecompanyat16thFloor,OrionHouse,49JorissenStreet,Braamfonteinatthelaterof10:30or10minutesafterthecompletionofthegeneralmeetingofOriondebentureholdersonThursday,14May2015(“the general meeting of Orion shareholders”)Aseparate formofproxyhasbeen included forusebydebentureholderswhoareunable toattend thegeneralmeetingofOriondebentureholderstobeheldattheofficeofthecompanyat16thFloor,OrionHouse,49JorissenStreet,Braamfonteinat10:00onThursday,14May2015.Ifyouareadematerialisedshareholder,otherthanwith“ownname”registration,donotusethisform.Dematerialisedshareholders,otherthanwith“ownname”registration,shouldprovideinstructionstotheirappointedCentralSecuritiesDepositoryParticipant(“CSDP”)orbrokerintheformasstipulatedintheagreemententeredintobetweentheshareholderandtheCSDPorbroker.I/We(FULLNAMESINBLOCKLETTERSPLEASE)of(Address)Telephonenumber Cellphonenumber

beingtheholder(s)of Oriondebenturesherebyappoint:1. orfailinghim,2. orfailinghim,3.thechairmanofthegeneralmeetingofOrionshareholdersasmy/ourproxytoattendandspeakandtovoteforme/usandonmy/ourbehalfatthegeneralmeetingofOrionshareholdersandatanyadjournmentorpostponementthereof,forthepurposeofconsideringand,ifdeemedfit,passing,withorwithoutmodification,theresolutionstobeproposedatthegeneralmeetingofOrionshareholders,andtovoteontheresolutionsinrespectofthesharesregisteredinmy/ourname(s):Pleaseindicatewithan“X”intheappropriatespacesbelowhowyouwishyourvotestobecast.Unlessthisisdonetheproxywillvoteashe/shethinksfit.

Number of votes*In favour of *Against *Abstain

Shareholder special resolution number 1: DelinkingoflinkedunitsShareholder special resolution number 2: CancellationofOriondebenturesandterminationoftheOrionDebentureTrustDeedShareholder special resolution number 3: CapitalisationofOriondebenturestostatedcapitalaccountShareholder special resolution number 4: ConversionofauthorisedparvaluesharestonoparvaluesharesShareholder special resolution number 5: ConversionofissuedparvaluesharestonoparvaluesharesShareholder special resolution number 6: AmendmentofMoIShareholder ordinary resolution number 1: Generalauthority

One vote per share held by shareholders recorded in the register on the voting record date.

Unlessotherwiseinstructedmyproxymayvoteorabstainfromvotingashe/shethinksfit.Signedthis dayof 2015

Signature

(Statecapacityandfullname) Assistedbyme(whereapplicable)

AshareholderentitledtoattendandvoteatthegeneralmeetingofOrionshareholdersisentitledtoappointaproxytoattend,voteandspeakinhis/herstead.Aproxyneednotbeamemberofthecompany.Eachisentitledtoappointoneormoreproxiestoattend,speakand,onapoll,voteinplaceofthatshareholderatthegeneralmeetingofOrionshareholders.FormsofproxymustbedepositedatComputershare InvestorServicesProprietaryLimited,70MarshallStreet, Johannesburg,2001(PO Box61051,Marshalltown,2107)tobereceivedbynolaterthan10:30onTuesday,12May2015.

Please read notes on the reverse side hereof.

NOTES TO THE FORM OF PROXY:

1. Onlyshareholderswhoareregisteredintheregisterofthecompanyundertheirownnameonthedateonwhichshareholdersmustberecordedassuchintheregistermaintainedbythetransfersecretaries,ComputershareInvestorServicesProprietaryLimited,beingFriday,8May2015(the“voting record date”),maycompleteaformofproxyorattendthegeneralmeetingofOrionshareholders.Thisincludesshareholderswhohavenotdematerialisedtheirsharesorwhohavedematerialisedtheirshareswith“ownname”registration.ThepersonwhosenamestandsfirstontheformofproxyandwhoispresentatthegeneralmeetingofOrionshareholderswillbeentitledtoactasproxytotheexclusionofthosewhonamesfollow.Aproxyneednotbealinkedunitholderofthecompany.

2. CertificatedshareholderswishingtoattendthegeneralmeetingofOrionshareholdershavetoensurebeforehandwiththetransfersecretariesofthecompany(beingComputershareInvestorServicesProprietaryLimited)thattheirsecuritiesareregisteredintheirownname.

3. Beneficialshareholderswhosesharesarenotregisteredintheir“ownname”,butinthenameofanother,forexample,anominee,maynotcompleteaproxyform,unlessaformofproxyisissuedtothembyaregisteredshareholderandtheyshouldcontacttheregisteredshareholderforassistanceinissuinginstructionsonvotingtheirshares,orobtainingaproxytoattend,speakand,onapoll,voteatthegeneralmeetingofOrionshareholders.

4. Dematerialisedshareholderswhohavenotelected“ownname”registrationintheregisterofthecompanythroughaCentralSecuritiesDepositoryParticipant(“CSDP”)andwhowishtoattendthegeneralmeetingofOrionshareholders,mustinstructtheCSDPorbrokertoprovidethemwiththenecessaryauthorityto attend.

5. Dematerialisedshareholderswhohavenotelected“ownname”registrationintheregisterofthecompanythroughaCSDPandwhoareunabletoattend,butwishtovoteatthegeneralmeetingofOrionshareholders,musttimeouslyprovidetheirCSDPorbrokerwiththeirvotinginstructionsintermsofthecustodyagreemententeredintobetweenthatshareholderandtheCSDPorbroker.

6. Ashareholdermayinsertthenameofaproxyorthenamesoftwoormorealternativeproxiesoftheshareholder’schoiceinthespace,withorwithoutdeleting“thechairmanofthegeneralmeetingofOrionshareholders”.ThepersonwhosenamestandsfirstontheformofproxyandwhoispresentatthegeneralmeetingofOrionshareholderswillbeentitledtoactasproxytotheexclusionofthosewhosenamesfollow.

7. ThecompletionandlodgingofthisformwillnotprecludetherelevantshareholderfromattendingthegeneralmeetingofOrionshareholdersandspeakingandvotinginpersonthereattotheexclusionofanyproxyappointed,shouldsuchshareholderwishtodoso.Inadditiontotheaforegoing,ashareholdermayrevoketheproxyappointmentby:(i)cancellingitinwriting,ormakingalaterinconsistentappointmentofaproxy;and(ii)deliveringacopyoftherevocationinstrumenttotheproxy,andtothecompany.

8. Therevocationofaproxyappointmentconstitutesacompleteandfinalcancellationoftheproxy’sauthoritytoactonbehalfoftherelevantshareholderasofthelaterofthedate:

8.1 statedintherevocationinstrument,ifany;or

8.2 uponwhichtherevocationinstrumentisdeliveredtotheproxyandtherelevantcompanyasrequiredinsection58(4)(c)(ii)oftheCompaniesAct,71of2008,asamended(the“Companies Act”).

9. Shouldthe instrumentappointingaproxyorproxieshavebeendeliveredtothecompany,as longasthatappointmentremains ineffect,anynoticethat isrequiredbytheCompaniesActorthecompany’sMemorandumofIncorporationtobedeliveredbythecompanytotheshareholdermustbedeliveredbythecompanyto:

9.1 theshareholder;or

9.2 theproxyorproxiesiftheshareholderhasinwritingdirectedtherelevantcompanytodosoandhaspaidanyreasonablefeechargedbythecompanyfordoingso.

10. Aproxyisentitledtoexercise,orabstainfromexercising,anyvotingrightoftherelevantshareholderwithoutdirection,excepttotheextentthattheMemorandumofIncorporationofthecompanyortheinstrumentappointingtheproxyprovideotherwise.

11. If thecompany issuesan invitation to shareholders toappointoneormorepersonsnamedby thecompanyasaproxy,or suppliesa formof instrumentappointingaproxy:

11.1 suchinvitationmustbesenttoeveryshareholderwhoisentitledtoreceivenoticeofthemeetingatwhichtheproxyisintendedtobeexercised;

11.2 thecompanymustnotrequirethattheproxyappointmentbemadeirrevocable;and

11.3 theproxyappointmentremainsvalidonlyuntiltheendoftherelevantmeetingatwhichitwasintendedtobeused,unlessrevokedascontemplatedinsection58(5)oftheCompaniesAct.

12. Anyalterationorcorrectionmadetothisformofproxymustbeinitialledbythesignatory/ies.Adeletionofanyprintedmatterandthecompletionofanyblankspace(s)neednotbesignedorinitialled.

13. 13. DocumentaryevidenceestablishingtheauthorityofapersonsigningthisformofproxyinarepresentativecapacitymustbeattachedtothisformunlesspreviouslyrecordedbythetransfersecretariesofthecompanyorwaivedbythechairmanofthegeneralmeetingofOrionshareholders.

14. Aminormustbeassistedbyhis/herparent/guardianunlesstherelevantdocumentsestablishinghis/herlegalcapacityareproducedorhavebeenregisteredbythetransfersecretaries.

15. AcompanyholdingsharesinthecompanythatwishestoattendandparticipateatthegeneralmeetingofOrionshareholdersshouldensurethataresolutionauthorisingarepresentativetoactispassedbyitsdirectors.Resolutionsauthorisingrepresentativesintermsofsection57(5)oftheCompaniesActmustbelodgedwiththecompany’stransfersecretariespriortothegeneralmeetingofOrionshareholders.

16. Wheretherearejointholdersofsharesanyoneofsuchpersonsmayvoteatanymeetinginrespectofsuchsharesasifheweresolelyentitledthereto;butifmorethanoneofsuchjointholdersbepresentorrepresentedatthemeeting,thatoneofthesaidpersonswhosenameappearsfirstintheregisterofshareholdersofsuchsharesorhisproxy,asthecasemaybe,shallalonebeentitledtovoteinrespectthereof.

17. Onashowofhands,everyshareholderofthecompanypresentinpersonorrepresentedbyproxyshallhaveonevoteonly.Onapollashareholderwhoispresentinpersonorrepresentedbyaproxyshallbeentitledtothatproportionofthetotalvotesinthecompanywhichtheaggregateamountofthenominalvalueofthesharesheldbyhimbearstotheaggregateamountofthenominalvalueofallthesharesoftherelevantclassissuedbythecompany.

18. ThechairmanofthegeneralmeetingofOrionshareholdersmayrejectoracceptanyproxywhichiscompletedand/orreceivedotherthaninaccordancewiththeinstructions,providedthatheshallnotacceptaproxyunlessheissatisfiedastothematterinwhichashareholderwishestovote.

19. Aproxymaynotdelegatehis/herauthoritytoactonbehalfoftheshareholder,toanotherperson.

20. Ashareholder’sinstructiontotheproxymustbeindicatedbytheinsertionoftherelevantnumberofshares,asthecasemaybe,tobevotedonbehalfofthatshareholderintheappropriatespaceprovided.FailuretocomplywiththeabovewillbedeemedtoauthorisethechairpersonofthegeneralmeetingofOrionshareholders,ifthechairpersonistheauthorisedproxy,tovoteinfavouroftheresolutionsatthegeneralmeetingofOrionshareholdersorotherproxytovoteortoabstainfromvotingatthegeneralmeetingofOrionshareholdersashe/shedeemsfit,inrespectofthesharesconcerned.Ashareholderortheproxyisnotobligedtouseallthevotesexercisablebytheshareholderortheproxy,butthetotalofvotescastinrespectwhereofabstentionisrecordedmaynotexceedthetotalofthevotesexercisablebytheshareholderortheproxy.

21. Itisrequestedthatthisformofproxybelodgedorpostedorfaxedtothetransfersecretaries,ComputershareInvestorServicesProprietaryLimited,70MarshallStreet,Johannesburg,2001(POBox61051,Marshalltown,2107)tobereceivedbynolaterthan10:30onTuesday,12May2015.

22. Aquorumforthepurposesofconsideringtheshareholderordinaryandspecialresolutionsshallcomprise25%ofallthevotingrightsthatareentitledtobeexercisedbyshareholdersinrespectofeachmattertobedecidedatthegeneralmeetingofOrionshareholders.Inaddition,aquorumshallconsistofthreeshareholdersofthecompanypersonallypresentorrepresentedbyproxy(andiftheshareholdersisabodycorporate,itmustberepresented)andentitledtovoteatthegeneralmeetingofOrionshareholders.

23. ThisformofproxymaybeusedatanyadjournmentorpostponementofthegeneralmeetingofOrionshareholders,includinganypostponementduetoalackofquorum,unlesswithdrawnbytheshareholder.

24. Theaforegoingnotescontainasummaryoftherelevantprovisionsofsection58oftheCompaniesAct,asrequiredintermsofthatsection.

ORION REAL ESTATE LIMITED(IncorporatedintheRepublicofSouthAfrica)

(Registrationnumber1997/021085/06)Sharecode:ORE ISIN:ZAE000075651

(“Orion”or“thecompany”)

FORM OF SURRENDER (FOR CERTIFICATED LINKED UNITHOLDERS ONLY)

Instructions:

1. This form of surrender is for use by certificated linked unitholders who will be receiving replacement share certificates pursuant to theimplementationoftheschemeand,whencompleted,shouldbesenttothetransfersecretaries.

2. Replacementsharecertificateswillnotbesenttocertificatedlinkedunitholdersunlessanduntilaformofsurrenderandthedocumentsoftitleinrespectoftherelevantlinkedunitshavebeensurrenderedtothetransfersecretaries.

3. Part Amustbecompletedbyalllinkedunitholderswhohavenotyetdematerialisedtheirlinkedunitcertificatesorotherdocumentsoftitle.4. DematerialisedlinkedunitholdersmustnotcompleteaformofsurrenderastheappropriateactionwillbetakenbytheirCSDPorbroker.5. Ifthisformofsurrenderisreceivedbythetransfersecretarieswiththerelevantdocumentsoftitlepriortotheschemebecomingeffective,it

willbetreatedasaconditionalsurrenderwhichismadesubjecttosuchschemebecomingeffective.Suchsurrendereddocumentsoftitlewillbeheldintrustbythetransfersecretariesuntiltheschemebecomeseffective.Intheeventoftheschemenotbecomingeffective,foranyreasonwhatsoever,thetransfersecretarieswillwithinfivebusinessdaysaftereitherthedateuponwhichitbecomesknownthattheschemewillnotbeabletobeimplemented,or,aftersubsequentreceiptofsurrendereddocumentsoftitle(whicheveristhelater),returntherelevantdocumentsoftitletotheshareholdersconcerned,attheirrisk,byregisteredpost.

6. Part Bmustbecompletedbyallemigrantsfromandnon-residentsofthecommonmonetaryareawhoarerecordedinthelinkedunitholderregisterofthecompanyandwhohavenotyetdematerialisedtheirdocumentsoftitle.

7. Aseparateformofsurrenderisrequiredforeachunitholder.Please refer to the instructions above and the notes overleaf before completing this form of surrender

To: OrionRealEstateLimitedCare of: ComputershareInvestorServicesProprietaryLimited

GroundFloor or POBox6176370MarshallStreet MarshalltownJohannesburg2001 2107

Dear Sirs

I/We, theundersigned,being theregisteredholderof thenumberof linkedunitsspecifiedbelow,whichare freeofencumbrances,herebysurrendertheencloseddocumentsoftitleidentifiedbelowinrespectofthesharesheldbyme/usinthecompanyconditionaluponthespecialresolutions inrespectof thetransactionbeingpassed(andthesubsequentregistrationof therelevantspecialresolutionswithCIPC)at thegeneralmeetingofOriondebentureholdersandthegeneralmeetingofOrionshareholderstobeheldonThursday,14May2015.I/Weherebyinstructyoutopostareplacementcertificateinrespectofthelinkedunitssurrenderedtome,byregisteredpost,atmy/ourrisk,totheaddressgivenbelow,onthetermssetoutinthedocumentdispatchedtounitholderstowhichthisformofsurrenderwasattached.I/Weacknowledgethatifnoaddressisstatedbelow,thereplacementcertificatewillbesenttomy/ouraddressrecordedontherelevantsub-register.My/Oursignature(s)onthisformofsurrenderconstitutesmy/ourexecutionofthisinstruction.

Signatureofunitholder Date 2015

Surname/NameofcorporatebodyStampandaddressofagent

lodgingthisform(ifany)Firstnames(infull)(ifapplicable)Title(Dr,Prof,Mr,Mrs,Miss,Ms,etc.)TelephonenumberCellphonenumberEmailaddressAssistedbyme(ifapplicable)Date 2015Statefullnameandcapacity

Postaladdress(preferablyPOBoxaddress)towhichreplacementcertificatesshouldbesent,ifotherthantheaddresscontainedintheregisteroflinkedunitholders:

Postalcode:

InordertocomplywiththerequirementsoftheFinancialIntelligenceCentreAct,38of2001,thetransfersecretarieswillnotbeabletorecordanychangeofaddressrequestunlesstherequestisaccompaniedbythefollowingdocumentation:• anoriginallycertifiedcopyofyouridentitydocument;• anoriginallycertifiedcopyofadocumentissuedbytheSouthAfricanRevenueServiceverifyingyourincometaxnumber.Ifyoudonothave

anincometaxnumber,alettertothiseffect,certifiedbyacommissionerofoathsmustaccompanyyourrequest;and• anoriginalororiginallycertifiedcopyofaserviceaccountverifyingyourresidentialaddress.

PART A – Applicable to all certificated linked unitholders. Linked unit certificate/s and/or documents of title surrendered:

Name of registered holder (separate form for each holder)

Certificate number(s) (in numerical order)

Number of linked units covered by each certificate For office use only

Total

PART B – Applicable to all emigrants from and non-residents of the Common Monetary Area who are recorded in the linked unitholder register of the company.Nominated authorised dealer in the case of a certificated linked unitholder who is an emigrant from or non-resident of the Common Monetary Area(whowishtheirreplacementsharecertificatestobesenttoanauthoriseddealerinSouthAfrica):

Name of authorised dealer/bank

Address

Account number

NOTES

Completionofthisformofsurrender(“form”)1. Ifyouhaveanydoubtastohowtocompletethisform,pleaseconsultyouraccountant,attorney,banker,brokerorotherprofessionaladviser.2. Thisformmustbecompleted,signedandsent,togetherwiththerelevantlinkedunitcertificate/sand/orotherdocument/softitle,totheoffices

ortothepostaladdressofthetransfersecretaries.3. Anyalterationtoorcorrectiononthisformmustbesignedinfullandnotonlyinitialled.Return address:Oncecompleted,thisform,togetherwithdocumentsoftitlesurrendered,mustbedeliveredormailedtothetransfersecretariesatthefollowingaddresses,respectively,inanenvelopemarked“OrionPropertiesLimited–Certificatesoftitle”:By hand: or By mail:ComputershareInvestorServicesProprietaryLimited ComputershareInvestorServicesProprietaryLimitedGroundFloor POBox6176370MarshallStreet MarshalltownJohannesburg 21072001Posting of replacement certificates Ifthisformisreturnedwiththerelevantdocumentsoftitletolinkedunits,itwillbetreatedasaconditionalsurrenderwhichismadesubjecttotheschemebecomingoperativeandtheimplementationofthescheme.Intheeventoftheschemenotbecomingoperativeforanyreasonwhatsoever,thetransfersecretarieswill,bynotlaterthanfivebusinessdaysafterthedateuponwhichitbecomesknownthattheschemewillnotbeoperative,returnthedocumentsoftitletothelinkedunitholdersconcerned,byregisteredpost,attheriskoflinkedunitholders.Certificatesreflectingtheschemewillbesenttotheaddressprovidedoverleaf(orfailingsuchinstruction,totheaddressofthelinkedunitholderconcernedasrecordedintherelevantsub-registerofthecompany)byregisteredpostattheriskofthelinkedunitholderconcernedonoraboutMonday,29June2015,ifthedocumentsoftitlehavebeensurrenderedbefore12:00onFriday,26June2015.Contraryinstructionswillnotbeaccepted.Anydocumentsreceivedafterthisdatewillbereplacedwithinfivebusinessdaysfromthedateonwhichthedocumentshavebeenreceivedbythetransfersecretaries.Instructions

1. Personswhohaveacquiredlinkedunitsinthecompanyafterthedateofpostingofthedocumenttowhichthisformisattached,canobtaincopiesoftheformandthesaiddocumentfromthetransfersecretaries.

2. Allcertificatedunitholderscompletingandreturningtheformmustalsosurrenderalltheirexistinglinkedunitcertificates.3. Noreceiptswillbeissuedfordocumentslodged,unlessspecificallyrequested.IncompliancewiththerequirementsoftheJSE, lodging

agentsarerequestedtopreparespecialtransactionreceipts.4. Signatoriesmaybecalleduponforevidenceoftheirauthorityorcapacitytosignthisform.5. Ifthisformissignedunderapowerofattorney,thensuchpowerofattorney,oranotariallycertifiedcopyhereof,mustbesentwiththisformfor

noting,unlessithasalreadybeennotedbythetransfersecretariesorithasbeenlodgedwithabrokerandthisformbearsthestampofthatbroker.6. Wherethememberisacompanyoraclosecorporation,unlessithasalreadybeenregisteredwiththetransfersecretaries,acertifiedcopy

ofthedirectors’ormembers’resolutionauthorisingthesigningofthisformmustbesubmittedifsorequestedbythetransfersecretaries.7. Wheretherearejointholdersofanylinkedunits,onlythatholderwhosenameappearsfirstintheregisterinrespectofsuchlinkedunitsneed

signtheform.8. Iftheunitholderisadeceasedestate,thisformmustbeaccompaniedbyacertifiedcopyoftheLetterofExecutorship,unlesstherelevant

documentshavealreadybeenlodgedwiththetransfersecretariesorwithabrokerandthisformbearsthestampofthatbroker.9. Aminormustbeassistedbyhis/herparentorguardian.Lost share certificates and/or documents of titleIfalinkedunitcertificateorotherdocumentoftitlerelatingtoanylinkedunitinthecompanyhasbeenlostordestroyed,therelevantreplacementcertificatewillonlybeissueduponproductionofsatisfactoryevidencethattherelevantlinkedunitcertificateordocumentoftitlehasbeenlostordestroyedandupondeliveryofanindemnity,inaformandontermsandconditionsapprovedbythecompany.Indemnityformsmayberequestedfromthetransfersecretaries.Dematerialised unitholdersThisformisnotintendedfordematerialisedlinkedunitholdersandsuchlinkedunitholdersmustnotcompletethisform.Wheredematerialisedlinkedunitholderswishtoprovideanewaddresstowhichsharestatementsaretobeposted,suchlinkedunitholdersshouldcontacttheirCSDPorbroker.South African Exchange Control RegulationsIntheinstanceofcertificatedlinkedunitholderswhoseregisteredaddressesinthecompany’sshareregisterareoutsideofthecommonmonetaryarea,orwheretherelevantcertificatesarerestrictivelyendorsedintermsoftheSouthAfricanExchangeControlRegulations,thefollowingwillapply:• fornon-residentswhoareemigrantsfromthecommonmonetaryarea,thereplacementsharecertificatereflectingthecapitalrestructurewill

besenttothelinkedunitholders’authoriseddealerinforeignexchangeinSouthAfricacontrollingtheirblockedassets;and• forallothernon-residents,thereplacementsharecertificatereflectingthecapitalrestructurewillberestrictivelyendorsed“non-resident”in

termsoftheSouthAfricanExchangeControlRegulations.