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
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