takeover, page-9

Some info

Prime Trust is one of Australia�fs largest owners of retirement villages and aged care facilities. It has a portfolio of more than 4,600 retirement village units and 780 aged care beds in nearly 40 locations. It also has a pipeline of at least a further 1,800 units and beds, which will increase the number of locations to nearly 50 over the next five years.

At 31 December 2007 interest bearing debt was $380m. This debt has been established over recent years to fund acquisitions of the property portfolio. Since December 2007, there has been no change to this core debt. As previously advised, all of the Trust�fs facilities are of 3 to 5 year terms with only $10m due to be refinanced in FY09.

However, there is evidence that valuers are increasing discount rates on properties. The Trust has received valuer reports for eight out of the eleven pension�]based villages owned by the Trust (currently managed by Fig Tree). Discount rates have increased from between 50 basis points and 100 basis points since the last valuation of these properties in 2006.

SOunds like they need a merger to survive to me, merging would also reduce its expenses as BBC manages some of its properties,,,

Lend lease shares maybe but would prefer cash...is it worth a punt assuming LL will emerge with a cash offer? Or is it such a buyers market its now script or nothing?