ferret's stock to watch: multiplex group

Ferret's Stock to Watch: MULTIPLEX GROUP
07:52, Monday, 10 January 2005

MULTIPLEX SHOULD COME OUT ON TOP AT WEMBLEY REBUILDING

Sydney - Monday - January 10: (RWE)
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OVERVIEW
********

The name of Multiplex in the Australian building and construction
industry is now number one and as famous as Wembley Stadium in London
which it is in the process of rebuilding after one or two interruptions.

It's just been reported Multiplex is considering listing in
London which is often a signal there could be more activity to come in
the stock market.

Multiplex Group has an established and growing presence in the
United Kingdom, the Middle East and New Zealand, and has offices
throughout Australia as well as in London, Auckland and Dubai.

Last December Multiplex announced it was joining forces with
Hammerson to advance the Cricklewood scheme.

Multiplex Group and Hammerson plc, one of the UK's largest
property groups, have joined forces in a 50/50 venture to
advance proposals for the regeneration of Cricklewood, North London.

The partnership comes after Multiplex bought retail park
specialists Pillar Property's interest in Cricklewood Regeneration
Limited, a joint venture responsible for the regeneration and development
of the Cricklewood area located eight kilometres to the north of London.

Multiplex, through Cricklewood Regeneration Limited, will now
work closely with Hammerson to regenerate 240 hectares of land and
transform Cricklewood into a new mixed-use urban centre.

The scheme will include up to 5,500 homes and as much as 400,000
m of offices.

A development framework for the regeneration of this area of
north London was approved by the local council in April
2004.

Mayoral approval followed in July 2004.

The partners are now progressing the scheme proposals, in
consultation with the local council and the Greater London
Authority, with a view to submitting a planning application in late 2005.

Andrew Roberts, chief executive, Multiplex Group, said:

"We are delighted to be working with Hammerson in bringing
forward this important scheme, which will greatly enhance the entire
region.

"Multiplex is growing its operations in the UK and Cricklewood
will form an important part of our long term strategic growth.

"The project is one we have been we have been pursuing for quite
some time.

"Cricklewood is an important addition to our UK portfolio, which
now comprises a range of significant projects across various property
sectors.

"The Cricklewood project is potentially one of the largest
redevelopment projects in the UK, and likely to be staged over a number
of years, "Mr Roberts declared

John Richards, chief executive of Hammerson plc, said:

"We look forward to working with Multiplex Group in advancing
this exciting scheme.

"This is a key stage in delivering the regeneration of this
important area of north London," he said.

On the local scene Multiplex Funds Management last week announced
it was acquiring the remaining shares it didn't already following the
purchase of the Onyx Property Group.

Multiplex Group has allotted fully paid Multiplex Group stapled
securities to Onyx Property Group stapled securityholders who were
subject to the compulsory acquisition procedure.

The company reported an $88.4 million net profit after tax from
continuing operations and after stapled eliminations for the year ended
30 June 2004.

The result represented a $31.4 million contribution from the
Multiplex Property Trust for the first seven months of its operation, and
a full year profit from Multiplex Limited of $88.4 million.

Company profit before interest and tax increased 13 per cent over
the IPO forecast, representing a 109 per cent increase over the 2003 pro
forma result and a strong performance in the first year since listing.

UNIT PRICE MOVEMENTS
********************

Fully paid stapled securities rose 4c to $5.43 on Friday. The
units have a rolling high of $5.93 and low of $3.83. Distribution payout
is 15.81c to yield 2.91 per cent.

Unit holders were invited to invest in offered Multiplex SITES
Trust in November which is a non-cumulative product offering a floating
rate distribution, payable quarterly in arrears.

The distribution rate is calculated each distribution
period based on the three month bank bill rate plus the margin.

For the first distribution period to March 31, 2005, the
distribution rate will be the greater of the bank bill rate on the
last day of the bookbuild (being 5.40pc per annum) and the bank bill rate
on the issue date (expected to be 19 January 2005), plus the margin.

Based on the minimum bank bill rate of 5.40pc per annum, the
distribution rate for the first distribution payment (to be made on 15
April 2005) will be at least 7.3 per cent per annum.

The offer to invest in Multiplex SITES is made in the product
disclosure statement issued by Multiplex Funds Management Limited as
responsible entity of the Multiplex SITES Trust and dated November 9,
2004.

The Multiplex portfolio is detailed on the company's website.

In the office activities 88 per cent of the Trust's porfolio
is made up of investment grade offices in NSW, VIC, WA, QLD and the ACT
as well as investments in 12 properties in NZ.

Industrial: The Trust owns six investment properties throughout
Australia and NZ, as well as an investment in three centres in NZ.

Retail: The Trust owns five retail properties in NSW, QLD and WA
as well as an investment in seven retail centres in NZ.

Car Park: The Trust currently owns one car park at Luna Park,
Sydney.

BACKGROUND
**********


Multiplex Property Trust was established in September 2003.

Since this time the Trust's assets have grown from 11
properties and one investment at the time of listing to 30 properties and
three investements largely as a result of the takeover of Onyx Property
Group (formerly Ronin).

In September 2004 Multiplex Group announced the takeover of Onxy
Property Group (formerly Ronin).

The takeover has been successful with over 90 per cent
acceptances of Ronin securities received by 26 November 2004.

Multiplex Group has since exercised its right to compulsorily
acquire the outstanding Ronin securities on issue.

It is anticipated that this exercise will be completed in early
2005.

The Trust currently holds a core portfolio of 30 properties in
Sydney, Melbourne, Brisbane, Perth, Canberra, Auckland and Wellington.

In addition the Trust has an interest in three
investments including a 49 per cent interest in the Multilpex Acumen
Property Fund, a 25 per cent interest in the Multiplex New Zealand
Property Fund and a 30 per cent interest in the AMP NZ Office Fund.

A number of the Trust's properties have or are being developed
and constructed by Multiplex.

The development properties underpin a modern portfolio and
include the Ernst & Young Centre and 50 Goulburn Street at World Square
in Sydney, Southern Cross in Melbourne and Ernst & Young Building in
Perth.

ENDS

Copyright © 2005 RWE Australian Business News. All rights reserved.

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