Ann: Appendix 4E, page-9

On the positive side, population is growing. Melbourne might be VCX's largest position but I think it's Australia's fastest-growing city. I have a feeling the government will rely on even greater immigration to help rebuild the economy and pay-down the debt. Many of these people will end up in Melbourne.

Also, new malls are unlikely to be built in the short to medium term. So the malls we have now will be all we're getting for a few years.

Having lived in China for most of the last ten years I can report that e-commerce dwarfs anything we have in Australia. We are years behind Beijing, Shanghai, etc. in this area, yet their malls are always very busy and more are constantly being built. The SCG malls in other states are apparently doing well.

There will be valuation downgrades and rent reduction but the current share price assumes the worst. Also, VCX has already had its capital raising. The current situation isn't great but there's a lot of upside for a patient investor.