Funds & Trusts

strategy

The Fund is in the process of being wound up, having made total capital returns to Unitholders of 71.00cpu (41.00cpu in December 2009, 26.00cpu in February 2010, and 4.00cpu per unit in July 2010).

The wind-up of the fund is reliant on completion of two matters:

• Resolution of the Capital Hill legal dispute – Mediation was held on 6 March 2012 to try and resolve the dispute. The mediation assisted in confirming the plaintiff’s legal arguments and willingness to settle. As there is no simple legal answer to the case, 360 Capital intends to use the ongoing mediation process to reach a settlement, despite the fact that 360 Capital does not believe the plaintiff’s claim for damages is justified.
• Resolution of the 360 Capital Office Fund receivable of $4.2 million – Due to the 360 Capital Office Fund’s negative net asset position, a full provision for the receivable has been made in the Fund’s accounts. The final amount and course of action will be addressed at the time the Capital Hill case is resolved.

The Fund will seek to settle the legal dispute in mediation. Once settled, it is intended that the RE put a resolution to Unitholders to forgive the Office Fund payable and complete the fund wind-up. Upon wind-up, the final capital payment is estimated to be in the range of 1.00cpu to 7.00cpu, equating to a final return of between 72.00cpu and 78.00cpu, with the expectation that it will be at the lower end of this range.

REPORTS AND DISCLOSURES