give defabstar a job, page-13

Asanque

I sent the below email to Investor Services over 2 weeks ago and am yet to receive a response.

Has anyone received a response yet in relation to CER's CNP branded credit card?

Before I proceed further, Id just like a heads up from as to whether any responses have been received.

This is a major issue and it is quite deplorable that nobody has yet received a formal response.






I note that CER is paying $12m interest (pg87 annual report) to CNP on a $110m loan (pg75, note 15 annual report)

I understand it may be in CNP's interest for CER to continue servicing the loan as without it, CNP may find it slightly more difficult to remain cash flow positive should interest rates and the AUD continue to move the wrong way.

However if the two entities are to seperate, then these (inter company) loans should be annulled.

Also, it is not in CER's interests to continue servicing this loan.

A suggestion may be for CER to surrender one of its half shares in an Australian asset to the value of $110m.

I note CER's share in Centro Mandurah was valued at $106m at 30 June 2009 (page 63 annual report). Total ABR was $8.2m (pg 16 supplemental) Lets say NOI is around $7.5m.

Assuming the value of the property is valued at $110m at 31 Dec 08 (an increase of 4%, reasonable considering NOI is increasing by around this rate and cap rates are likely to stay the same in Australia), then CER would save $4.5m per annum. therefore this would increase underlying net profit by $4.5m per annum.

On a DCF basis, in theory this should increase the value of CER by $45m or 2c per share.

This is one way we can increase value in CER via a seperation of CER and CNP.

Is there a logical reason for CER to continue servicing this loan going forward?