valad raises 138.7m from balance sheet asset

Good news, capital revenue


ASX ANNOUNCEMENT 17 December, 2008

VALAD RAISES A$138.7M FROM BALANCE SHEET ASSET SALES

Sells eleven New Zealand investment assets for NZ$41.2m

Sells four Australian investment assets for A$36.1m

Sells three Australian development sites for A$68.7m

Sells portfolio of eight Nordic Aktiv Fund assets for approx. A$65m

SYDNEY: Valad Property Group (ASX:VPG) today announced the sales of eleven New Zealand investment assets for NZ$41.2m, four investment assets in Australia for A$36.1m and three Australian development sites for A$68.7m. Combined, these sales of balance sheet assets have raised A$138.7m, the proceeds of which will be applied to debt.
Nine of the eleven New Zealand assets disposed of were depots leased to Carter Holt Harvey. The weighted average passing yield of the assets sold was 9.4% and the combined discount to book value as at 30 June 2008 was 14%. Sales proceeds totaled NZ$41.2m.
The four Australian investment asset dispositions comprised three Bunnings stores and an industrial property which were sold on a weighted average passing yield of 8.3% at a combined discount of 8.0% to the 30 June 2008 book value. Sales proceeds totaled A$36.1m.
Commerciality considerations and confidentiality clauses apply to the sales of three development sites in New South Wales, which realised a combined A$68.7m.
In addition to these recent sales, A$160m of proceeds from sales transacted prior to 30 June 2008 have been received in FY09. Of this, A$35m pertained to the sale of the Manukau development site in New Zealand held on balance sheet while A$125m pertained to sales of assets that were held in joint ventures including the Kennards portfolio, the 40% Gold Fields House stake and the Digital Campus portfolio in the UK.
Separately, within Valad’s managed funds, approximately A$65m was raised from the sale of an eight asset portfolio from Nordic Aktiv Funds 1 and 2, the proceeds of which will be applied against debt in those vehicles. 1
ASX ANNOUNCEMENT
Contacts
Jeff Locke
CEO Asia Pacific
Valad Property Group
Tel: 61 2 8257 6683
About Valad
Valad Property Group is an active fund manager, investor and developer with an international network of local offices managing A$18 billion of assets.
• Our core business is providing enhanced property returns to investors through value-adding activities.
• Our network of 30 local offices in 17 countries enables us to match global investment capital with real estate opportunities.
• Valad‘s aim is to continue to build a sustainable property business by providing stakeholders with the “value-add” that underpins the Group’s name and philosophy.
www.valad.com.au
2