Marsden Park Shopping Centre Update

The Manager has made a recommendation to the Trustee to market the Marsden Park Shopping Centre for sale prior to the end of the first half of 2014.

Refurbishment works have now been completed on the Centre and it has been repositioned within the market. Annualised net income has increased to $4.4 million compared to circa $2.8 million at purchase and the Centre is now close to being fully leased.

A number of unsolicited offers for the purchase of the Centre have been received in the past 12 months however these offers were not progressed as the Centre income was not considered to be stabilised and in a position to maximise investor returns. Additionally, expansion alternatives were also being explored.

It is now evident that there is strong investor appetite for neighbourhood shopping centres by institutional and offshore investors and so the Manager believes that these conditions offer an opportunity to realise a premium price for the asset.

The Manager has proposed a minimum target sale price that will generate an expected pre-tax investor IRR above 20% (net of all costs). This return reflects the forecast returns in the Information Memorandum. The Manager has recommended the sale on the basis that the improved income of the Centre, coupled with the strong market demand, presents an opportunity to maximise Unit Holders’ returns.

Marketing activities will commence imminently.