Well said Nursery!Commercial/industrial values are definately...

Well said Nursery!

Commercial/industrial values are definately stable with an outlook for improving. Vpg assets are substaintially weighted into these investment classes.

ANother interesting dynamic to observe is the recent shift in capital management of the A-REIT "heavyweights". Goodman, Stocklands, and Westfield all have now made moves to bolster cash positioning for acquisitions (be that direct property or other funds). These three drivers of A-Reits have been in capital protection "bunker down" positions for the past few years. All comments from them over that time has echoed the same matra of prudency, sell down of assets, capita protection.

Now we observe goodman making moves on ING funds, Stockies in major property acquisition drive, and Westfield on track to close a $3 Billion capital raising.

The Aust property industry players watch carefully the corporate poisitioning of these three groups and tend to "generally" follow their lead. I believe that will all translate into 2011 seeing more activity, rising rents and ultimately a firming up on transaction yields. VPG will benefit significantly just by sitting there let alone any strategic positioning they may surprise us with.

Still a few problems fro VPG to get through but looking much better than 6 months ago.

GLTA