Funds & Trusts

strategy

On 16 December 2011, the 360 Capital Transport Building Property Trust changed its name to the 360 Capital 441 Murray Street Property Trust to reflect the change in occupancy of the building.

Trust performance is determined by macroeconomic factors such as the health of the economy and the level of interest rates, ongoing leasing and asset management success in the underlying properties as well as capital and Fund management initiatives.

The following strategies for the Trust have been identified:

1. Finance facility – a new finance facility with Bankwest has been negotiated. The new three year facility commenced on improved terms and conditions in October 2011 and appropriate hedging was put in place. 
2. Property management – During the Half Year to 31 December 2011, occupancy remained at 100.0% despite the Department of Transport relocating within the Perth CBD before the end of the Half. The Property was backfilled by the Western Australian Police Department following a fit-out at its own expense. There was no interruption to the cash-flow of the Property as the new occupant simply took over the existing lease. Throughout FY2011, capital expenditure included upgrades to the airconditioning, plant and equipment. This included the replacement of one chiller with the second chiller forecast to be replaced during FY2012.
3. Market fundamentals – 360 Capital will continue to monitor the Perth office market to determine optimum time for asset disposal and wind up of the Trust in order to maximise Unitholders’ returns. 
4. Forecast FY2012 distribution payments – forecast distributions will continue to be paid on a monthly basis and are forecast to increase 25% from 20.0 cents per Unit in FY2011 to 25.0 cents per Unit per annum for FY2012 reflecting 360 Capital’s appraisal of the Trust’s financial and capital position.
5. Change Responsible Entity – on 10 October 2011, 360 Capital RE Limited retired as Responsible Entity of the Trust and 360 Capital Investment Management Limited became Responsible Entity. Both entities are wholly owned by 360 Capital. The replacement of Responsible Entity is believed to be in Unitholders best interests as it is not expected that there will be a material impact on how Trust is managed or administered as there will be no change in corporate governance, controls, financial & other resources, investment management staff, procedures or strategies. Unitholders were provided with an opportunity to request that a vote be held on the issue, however based on the response, the Trust was not required to hold a meeting.