Ann: Clark Property and International Training Update, page-14

Thanks for your helpful legal thoughts on Site's recent court ruling and ongoing case. It was mentioned at the AGM that the Court decision mentioned in a previous post was a "technical decision" & not relevant to the main case which is far from being finalised.

The EGP Capital December update mentioned the funding would enable "...commence progression the horizontal works on the site"

The actual SIT asx announcement re funding said the funding would enable "asset optimisation"

Site employed Palafox to do a concept plan for the Clark property. Previously Palafox had been employed for the Philippine government agency Clark Development Corporation to do a master plan for the Clark Freeport Zone, which our property is in.

If you look at the presentation on SIT's web site re the Palafox plans for the Clark Property (under Investor centre link) you'll see it has plans for Hotel developments, light industrial areas, condominiums, retail blocks + others. Obviously $15m wont fund that, however it sounds like they'll use the funds to do the "horizontal works" EGP mention to optimise the asset for sale for the above uses. I suppose that would entail some sort of subdivision, maybe some sort of infrastructure such as roads, power etc.

The Palafox study seems to have come up with a blueprint for the property and Site can maximise return by doing some site (no pun) works first. With a bit of luck they'll be able to pre-sell off the plan some of the land to potential purchasers. From what EGP have said in the past, it sounds like Site's own use of the land is sprawled out, so some of it would need to be relocated. The BCDA (mentioned in announcement) claim there is "no red tape" for development at Clark so these works shouldn't take long.

EGP as a major shareholder seem to be happy with the dilutive funding arrangement as it enables them to add more value to the asset. Interestingly the detachable warrants have an exercise price of 12c, a good premium to the current share price. Lucerne must be very confident of good share price appreciation to accept the 12c.