Just for information, Here is the email I sent with reply...

Just for information,

Here is the email I sent with reply received.

Hi XX,



Please find below answers to your queries:



1. Will there be any change in hedging strategy considering huge losses due to FX hedges. Can something be done so that in future losses are reduced, like have hedging exposure for only 50% of equity.
Ans: CER has agreed with Centro to unwind its equity hedge positions in the event that the Mark to market of each contract reaches zero.

2. The way property is devaluation is continuing, CER may have negative asset position soon. Are there any plans in place if conditions don't improve for another year.
Ans: The timing of economic recovery and improved fundamentals will guide valuation movement. It is therefore very difficult for CER to predict the movement

3. How is CER separation from CNP going to add value to CER?
Ans: To the extent that the market price of CER is affected by the apprehension of the current corporate governance or independence, further separation from Centro should address this concern.

4. What is the expectation that CSF facility is reduced to 50mil so that distributions restrictions can be removed from CSF? Is it achievable within a year?
Ans: CER is targeting to sell another $190m of assets in the FY09. We are anticipating that this will assist in bringing the CSF facility to the $50m level.

5. Can CER start share buy back to increase the investor value?
Ans: CER is using all available cash to reduce debt at this time.

6. What are the steps being taked to improve shareholder value? I would consider start of distribution will be a big step.
Ans: We agree, but in light of the debt refinancing that needs to be completed over the next 12 to 24 months, CER will focus on where possible to utilise available cash to reduce debt. At this time we are not providing distribution guidance.

7. What level of gearing can be expected if proposed asset sale of 500mil is achieved and there is no further devaluation of property?
Ans: Of the proposed $550 of debt reduction in FY09, there is another $340m forecast for the second half. This would bring the 31 December LVR from 68.7 % down to approximately 67.5

If you have any further queries, please contact Investor Services on 1800 802 400 or email [email protected].

Kind regards,

Alicia on behalf of the Investor Services Team