CT et al,Just looked up the current 30 Day BBSW rate.Its...

CT et al,

Just looked up the current 30 Day BBSW rate.

Its currently at 3.2067%

http://www.thinktank.net.au/index.php?mode=3

According to page 45 of supplemental,the 30 day BBSW was 7.44%.

Interest on the below Australian facilities use the 30 Day BBSW rate or BBSY rate with spreads ranging from 135 to 175 points in accordance with the applicable loan agreement.


Bank - CER Cash Advance Facility 02-Dec-08 - $370.0 $370.0 8.14%. Int payable: $30.1m


CER (Toombul, Taigum, Brooks Gardens) 12-Dec-10 - $139.5 $139.5 7.73%. Int payable: $10.78m

CSIF B (Club Facility) 15-Nov-09 - $333.7 $333.7 8.38%. int payable: $27.96

Int expense on above 3 facilities as at 30 June 08: $68.84m


This may mean the variable rate of interest being paid on these facilties would be in the 4.75% to 5% range instead of the 8% range.

Assuming 5% is paid on the above 3 facilities, that would mean an ever large considerable saving over and above what I had initially calculated.

Cash Adv Facility estimated int expense going fwd: $370 x 5% = $18.5m

CER (Toombul, Taigum, Brooks Gardens): $139.5m x 5% = $6.975m

CSIF B (Club Facility): $333.7m x 5% = $16.68m

Int expense: $42.155m


Interest saving: $26m


The below 3 variable Aust debt facilities may also use BBSW/BBSY but it doesnt specify in the supplemental.

Given the interest they were paying back then was above 8% similarly to the facilities discussed earlier, one would expect the interest paid on the below facilities to be similar to the interest being paid on the facilities discussed earlier.



Centro CMBS Series 2 04-Dec-09 - $155.0 $155.0 8.09%
CMBS 2006-1 (Aust) 20-Dec-09 - $155.4 $155.4 8.37%
CMBS 2006-1 (Aust) 20-Dec-10 - $171.1 $171.1 8.37%


Anyway I dont think Im going to do much more analysis between now and HY report date.

Im pretty comfortable with the current financial position of CER. Lets see how things pan out next week and beyond :-)

Cheers