NewActon East Property valuation increase

15 July 2015

The NewActon East property (“the Property”) has increased in value by $2.15 million to $47.25 million, since Placer Property acquired it less than a year ago.

Mr. Mario Papaleo, Joint Managing Director of Placer Property, the Responsible Entity of the NewActon East Property Fund (“the Fund”), said: “We are very satisfied with the performance of the Fund. The first year’s income return of 7.75% is forecast to increase to 8.60% in FY2016. The increase in the Property value reflects the solid underlying performance of the Property and Placer’s ability to drive net income growth.”

The valuation of the Property was completed by Knight Frank, Australia. Following the completion of the valuation, the Net Tangible Asset Backing of the Fund increases by 9.2% from 87 cents to 95 cents per unit . The Fund’s gearing reduces from 49.3% to 46.0%.

Mr. Shane Dudley, Head of Distribution, said: “Since the Fund was launched late last year, there have been many positive developments:

• the property is 100% leased;
• interest rate hedges have been put in place to September 2019; and
• the forecast distribution rate has increased by 11% to 8.60% for FY2016.

“The property valuation increase is another positive outcome for investors who are able to buy into an iconic and award winning building and precinct.”

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