Trust update

The trust is due to expire in October 2011. We continue to monitor the Perth office property market to identify an appropriate opportunity to sell the trust property prior to the scheduled expiry date.

Distributions and redemptions

In the meantime, the annualised distribution remains unchanged at 20 cents per unit.

Debt

The October 2011 expiry of the trust’s debt facility with Westpac coincides with the scheduled expiry of the trust.

Leasing

The property is leased to one tenant on a ten year lease that expires in November 2016. The weighted average lease expiry of the trust continues to reduce as we move closer toward this date.

Capital expenditure

The trust did not incur any capital expenditure in the June or September quarters. However, there is concern that the chiller, an essential part of the air conditioning service, is reaching the end of its life. The cost of a replacement chiller has been budgeted for the 2011 financial year.

Asset values

The most recent independent external valuation, as at 30 August 2010, again values the property at $24.5 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.