MULTIPLEX GROUP – PRESS SPECULATIONWe refer to the announcement...

MULTIPLEX GROUP – PRESS SPECULATION
We refer to the announcement made earlier today concerning the sale of Multiplex Group’s (“the Group’s”) minority interest
in the UK White City shopping centre project, and to subsequent unfounded market speculation regarding the Group’s
solvency and the possible involvement of the Group’s financiers in this and other recent asset sales.
As noted in our earlier announcement, the Group’s decision to sell its effective 12.5% minority interest in this asset to
Westfield is consistent with a preference not to hold small minority equity interests in assets without some form of
accompanying asset or property management role. In conjunction with the decision of our co-owner (Aldersgate) to sell its
interest in the White City project, the Group determined that the capital tied up in this investment (which is not scheduled for
completion until late 2007) could be better deployed into other activities within the Group.
The Group continues to have substantial cash at hand, and today has available to it undrawn debt lines in excess of $400
million. This position will be further improved upon the implementation of the Group’s long term debt structure for the
Multiplex Property Trust (“the Trust”), which is anticipated to complete on Friday. A component of this is the $1.0 billion
CMBS program which was launched, priced and announced yesterday and is also due for settlement on Friday. This is the
largest such program ever undertaken in Australia, and the Group believes its average margin over 3 month BBSW of
0.334% is an accurate reflection of the high quality of its investment portfolio. The majority of this debt was rated AAA (or
equivalent) by Standard & Poor’s, Moody’s and Fitch Ratings.
The restructuring of the Trust’s facilities was first identified as an opportunity for the Group over 9 months ago. This initiative
was developed and implemented by the Group to provide long tenor, low cost debt commensurate with its peer group in the
LPT sector. This initiative has been well supported by the Group’s core bankers, who have been instrumental in assisting
the Group through this process and continue to provide substantial credit facilities to the Group. We note the Group
maintains excellent relationships with all of its bankers.
Further, we refer to the announcement made on 7 April 2005 in which the market was advised that the Group’s peak gearing,
following completion of the Southern Cross project and further investment into development projects, was forecast to be
below 33%. This forecast position remains unchanged.