Trust update

The trust’s sole investment, an office building in Box Hill, Victoria, continues to perform well. During the June quarter, the trust completed a lease renewal with the third floor tenant.

Distributions and redemptions

Notwithstanding an improvement in rental income, the annualised distribution rate of the trust was reduced from 12.3 cents per unit to 10.0 cents per unit effective 1 July 2010. The distribution was reduced to provide for an establishment fee that is likely to be required by the financier for renewal of the trust’s debt facility. This facility is currently being extended on a monthly basis pending settlement of the sale of the Becton Funds Management business to 360 Capital Group. Distributions continue to be funded from rental income from the property after trust expenses (including bank interest) and capital expenditure.

Capital expenditure

No capital expenditure was undertaken or incurred at the property during the 6 month period to 30 September 2010.

Asset values

The property was independently valued at $12.6 million during the period, an improvement of $0.9 million.

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.