Joint Venture Update（一）.pdfVIP

Joint Venture Update Joint Venture Update Overview GPT and Babcock Brown (BB) have revised the terms of their international property joint venture (JV) - Builds on success and momentum to date - Represents evolution in relationship between the parties Capital structure and mandate of the JV remains essentially unchanged - Retains key objectives and benefits of the existing arrangements for both parties - Involves the re-organisation of management roles and responsibilities - Achieves an even greater alignment of interests between the parties under a new fee structure Joint Venture Update Overview of changes Both parties have renewed commitment to the JV for a further 5 years - Proceed to an asset realisation period after June 2012 - Allows both parties to plan for the future Reorganisation of management roles and responsibilities - BB responsible for management of JV portfolio (JV Fund) in accordance with already agreed business plan - JV Committee continues to be responsible for governance and direction - GPT to acquire the JV’s interest in Halverton and Hamburg Trust - BB to own 100% of the Greenfield retail and BNP multi family asset management platforms - Allows the JV to capitalise on the respective strengths of each party Fee structure revised to deliver even greater alignment of interests - Management fee paid to BB - subject to achievement of agreed GPT ROE targets - 50 / 50 ownership reinforces alignment Joint Venture Update Capital structure The additional capital commitments announced in November last year remain in place From 2009, $163m of preferred capital will be redeemed by GPT p.a. - Expected to be funded by increasing LTV from 75% up to 85% or via asset sales Blended GPT Preferred Return priced at 281bps over the three year swap rate JV geared at 75% (pre GPT Preferred Capital redemptions) with non recourse debt - Min