Ann: Purchase of 14.1% Stake in APDC, page-38

Ok guys, in my opinion (not advice) ;

1. TGP know what they are doing - they see an opportunity to make money and good luck to them. They have never been passive investors so the stated plans for the Trust is normal from my past observations. I don't hold TGP or AJD and will not be buying either !

2. NXT is the tenant of the 3 buildings and have long triple leases on all buildings. They also have a first right of refusal to buy the 3 buildings if they are offered for sale. This does not come into play if the owner of the units change in AJD, as AJD remains the owner of the buildings. So I have to ask if the plan all along was to buy the buildings back ? If so that was a shocking decision given the property valuation increases ! Now TGP may force the price up further.

3. I have spoken with NXT and they gave me their reasons and whilst I respect them, I disagree with their view that it puts them at higher risk in relation to tenancy, clientele etc. Personally I think the risk to NXT is higher rents when the renewals come up, not the responsible entity issue. I thought ASIC dealt with who was and wasn't an acceptable R.E.

4. NXT argument is they have the spare cash and the deal is EPS positive. Yes that is correct "for now" as the money we are paying 6.5% on via the Notes is sitting in the bank earning diddly squat until they make the progress payments on B2, M2 and S2. Lets hope they have some spare cash left after the 3 builds and we are not hit with a cap raising so they can continue to hold AJD stock.

5. If you could invest in cash, AJD stock or more racks within the NXT buildings, who makes the most money ? More racks win hands down so I would rather they pay the rent, suck up the eventual increase and build out the data halls and make a motza more.

6. Looks like they bought stock from Bennelong who were voting against the 360 proposal anyway.

7. It seems nobody has noticed that TGP have made a non binding proposal to buy all the units in AJD at $1.80 with no minimum acceptance level. This will mean that whilst they may lose any short term vote, the blowtorch on AJD and NXT will remain on high for sometime to come. They can sit there, extend the offer and keep acquiring shares beyond 20% and slowly squeeze ownership. Yes they have the cash to do that as last time I looked TGP had over $100m cash, no debt and quite a bit of money to come from other asset sales with deferred payment terms. That's before they bring in any potential JV partners. It also means that NXT is forced to retain and/or grow its own stake in AJD if they want to continue to be there landlords protector. Do we want to go $ for $ with TGP ?

8. I invested in a data hosting company, not a property trust. If I wanted AJD I would have bought them instead of NXT. Glad I didn't !

The building of B2, M2 and S2 makes sense as they can control the build, then make development profits by selling a fully leased building with long terms and refresh the cash account/repay debt at anytime in the future. That made sense to me and still does. Buying into AJD makes no sense at all, but I am happy to see a detailed list of reasons with the Directors signature attached.

As for NXT's operations - love the company and excited by its potential.

Please DYOR and in no way should the above comments be taken as advice of any sort.

Have a good weekend all.