Trust update

The refurbishment of the foyer and entry to the building continued to be the primary focus of the trust throughout the quarter. The refurbishment is progressing toward completion, now scheduled for late November/early December, and a lease with a high profile Perth restaurateur has been agreed for the new ground floor restaurant.

Once complete the trust will look to renew major tenancies expiring in 2012 and 2013, to maximise the value of the property as the trust approaches expiry in 2012.

Distributions

The annualised distribution remains unchanged at 18 cents
per unit.

Debt

Total debt as at 30 June was $33.2 million.

Capital expenditure

As at 30 June 2010, the trust had completed $2.846 million of work on the $9.554 million Stage 2 refurbishment. At that point:

• the removal of all fixture and fittings from the South West tenancy was almost complete.
• temolition works at the east and west plaza were almost complete.
• installation of services in the basement and concrete remediation work were continuing.
• installation of structural steel in the new retail tenancies was complete.
• structural steel works for the canopy roof were in progress.
• external walls for the new bar/restaurant tenancy had been completed, and
• sample paving had been assessed and approved.

Stage 2 of the refurbishment is now due to complete in late November 2010.

Asset values

The improvement in valuation reflects the capital spent on the refurbishment. The reduction in NTA is associated with the increase in debt due to the capital works.

Sale of Funds Management business

On 6 October 2010, Becton announced the sale of its Funds Management business to 360 Capital Group. We are working on obtaining all the necessary approvals and settling the sale before the end of the calendar year. The sale is the culmination of more than two years’ work to achieve a longer term capital management solution for the funds. It will provide the funds with the backing of a debt-free specialist property funds manager which in turn will provide the funds with enhanced prospects of attracting capital where needed. For further information about the sale please refer to the CEO’s letter in this edition of Review and to the FAQs on the Becton Investment Management website: www.bim.com.au.