AUSTRALAND PROPERTY GROUPAUSTRALAND HOLDINGS LIMITED (ABN 12 008...

AUSTRALAND PROPERTY GROUP
AUSTRALAND HOLDINGS LIMITED (ABN 12 008 443 696)
AUSTRALAND PROPERTY LIMITED (ABN 90 105 462 137) (AFS LICENCE NO. 231130) AS THE RESPONSIBLE ENTITY OF
AUSTRALAND PROPERTY TRUST (ARSN 106 680 424)
LEVEL 3, 1C HOMEBUSH BAY DRIVE, RHODES NSW 2138
www.australand.com.au
ASX ANNOUNCEMENT
3 August 2005
Australand Property Group announces a $20 million CMBS ‘tap issue’
Australand Property Group (“Australand”) today announced its second issue of notes under its
existing $315 million Commercial Mortgage Backed Securitisation (“CMBS”) issue (“AFL Series
2004-1”).
The $20 million ‘tap issue’ will have the same scheduled maturity date of 25 June 2009 and final
maturity date of 28 December 2010 as the existing notes on issue. $5 million of the additional
notes will be issued within existing headroom at the AAA, AA and BBB rating levels. The tap
issue will be used to repay existing debt and comprises:
Australand Finance Limited
Class Preliminary Rating Amount ($ millions)
A AAA 3
B AA 1
D BBB 1
E BBB- 15
The notes are ultimately backed by a highly diverse and fully cross collaterised pool of 21
commercial and industrial properties, characterised by a good quality tenancy base and a
weighted average lease profile of 7.2 years.
Attached is a copy of presentation slides to be discussed with potential investors.
For further information please contact:
David Craig
Chief Financial Officer
Phone: 61 2 9767 2145
AFL Series 2004-1 CMBS
Further Issuance of $20 million
Australand Property Group Australand Property Group
Arranger and
Lead Manager
August 2005
2
• Issuer Australand Finance Limited
• Notes on Issue
• Proposed Issue
• Scheduled Maturity June 2009
• Final Maturity December 2010
• Step-up Interest Twice the margin for each class of Notes as at initial the issue date
Issue Terms - AFL Series 2004-1
Class A Class B Class C Class D Class E
Rating AAA AA A BBB BBBFixed
Rate Notes $120m - - $24m -
Floating Rate Notes $73m $34m $39m $25m -
Class A Class B Class C Class D Class E
Rating AAA AA A BBB BBBFixed
Rate Notes - - - -
$15m
Floating Rate Notes $3m $1m - $1m Fixed / Floating
3
• 21 quality office and industrial properties
• Property portfolio well diversified by location and high quality tenancy base
Collateral Coverage
S&P Independent Variance
Valuation $489.8m $567.7m 13.7%
AAA AA A BBB BBBIssue
Amount $196m $35m $39m $50m $15m
LVR (per S&P) 40% 47% 55% 65%
DSCR* (per S&P) 2.3x 1.9x 1.6x 1.4x
* Refinance constant 9.25%
68%
1.3x
4
• Security First ranking fixed and floating charge
over assets of the Issuer plus the benefit
of a first ranking mortgage over the
properties.
• 18 Month Sell-down There is a requirement to commence sale
of security properties to the extent that
principal on the Notes remains unpaid on
the Scheduled Maturity Date.
• Rights to Deal in Properties To operate effectively, APG may acquire,
sell, or transfer properties subject to
rating affirmation by S&P.
Structural Features
5
• Liquidity Support: Liquidity Facility of $15.6m has been sized to
cover six months of interest payments and
Issuer expenses.
• Capital Expenditure: Undertaking by APG to expend sufficient
amounts each year with intent of maximising
occupancy levels, tenant cashflows and the
capital value of the properties.
• Insurance: Properties are insured against public liability,
industrial special risks and business interruption.
• Interest Rate Swaps: Swaps, if any, will comply with S&P criteria.
Structural Features
6
Updated CMBS Property Portfolio
7
• Portfolio is well diversified along the Eastern seaboard
• Locations are regions of principal economic activity
• Properties are located within the Office and Industrial sectors
Updated CMBS Property Portfolio
Geographic diversification - by property value
NSW
65%
VIC
22%
WA
1%
SA
1%
QLD
11%
Sector diversification - by property value
Office
67%
Industrial
33%
8
• Weighted average lease expiry is 7.2 years
• 89% of leases, by income, expire following the Scheduled Maturity Date
• Leases provide for a growing rental income over term of CMBS
• Tenancy is well diversified - 56% of income sourced from Investment Grade tenants
Updated Lease Expiry of 7.2 years
Lease expiry profile - weighted by income
0%
4%
7%
1%
0%
13%
27%
15%
23%
11%
0%
5%
10%
15%
20%
25%
30%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015+
Year Ended 30 June
Scheduled Maturity
of the Notes
9
Updated Top 10 Tenants
Top 10 tenants
0% 2% 4% 6% 8% 10% 12% 14% 16%
Exel
National Australia Bank
Ansell
TNT Australia
Cadbury Schweppes
NSW State Government
Australand Property Group
Coles Myer
Commonwealth of Australia
Nestle
Percentage of current income
10
Conclusion
11
• Issue of AAA to BBB- rated CMBS Notes
• Scheduled Maturity Date June 2009 (approx 4 years)
• Security comprises 21 prime office and industrial properties
• Portfolio is well diversified across areas of principal economic activity
• Average lease expiry of 7.2 years
• 89% of leases, by income, expire following the Scheduled Maturity Date
• Tenancy is well diversified with 56% of income sourced from investment
grade tenants
• Conservative LVR and DSCR levels for all classes of Notes
Transaction Summary
12
Pricing date: [9 August 2005]
Settlement date: [12 August 2005]
Proposed Timetable
13
Master Loan Agreement
and Loan Certificate
AFL Series
2004-1
Australand Finance
Limited
Australand
Holdings
Limited
AFL Security
Trustee
Rylehall Pty
Limited
Australand
Holdings
Limited
Management
Agreement
100%
Charge
Deposit
of
Shares
AWPT AWPT 2
Australand Group Security
Trust Deed
Series 1
Master Guarantee Deed
Securities - Charges; real property, mortgages; guarantees
Beneficiary
Series 1
Security
Pool
AWPT 3
Australand Property
Limited
Appendix: Transaction Structure