"At MacarthurCook, we are committed to delivering stable, consistent and regular income to investors. We achieve this through our disciplined investment approach and active management of real estate-related assets, which have been carefully chosen to meet our stringent investment criteria. With our sound capability in the management of real estate assets and securities, we are well-positioned to achieve our aspiration of becoming one of the leading real estate investment firms in the Asian region and beyond." - Craig Dunstan, Managing Director of MacarthurCook Limited

HEADQUARTERED in Melbourne, Australia, and listed on the Australian Stock Exchange, MacarthurCook Limited (ASX Code: MCK) is an international real estate investment manager specialising in the investment management of direct property, real estate securities and mortgage assets.

In October 2006, MacarthurCook expanded into the Asian region with the establishment of its Asian headquarters, MacarthurCook Investment Managers (Asia) Limited, in Singapore. This was followed by the secondary listing of the Macarthur-Cook Property Securities Fund on the SGX-ST on December 22, 2006, which was listed on the Australian Stock Exchange since December 2004. On April 19, 2007, the MacarthurCook Industrial Reit was listed on the main board of the Singapore Exchange Securities Trading Limited (SGX-ST).

Worldwide, Macarthur-Cook currently manages a total of 13 funds investing in real estate and real estate-related securities, with total funds under management in excess of A$1.5 billion, on behalf of over 25,000 investors.

MacarthurCook in Singapore:

MACARTHURCOOK INDUSTRIAL REIT

MacarthurCook Industrial Reit is an owner of high-quality industrial assets across Singapore and listed on the main board of the Singapore Exchange on April 19, 2007. Managed by MacarthurCook Investment Managers (Asia) Limited, the Reit's key objectives are to deliver secure, stable distributions to unitholders, as well as providing long-term capital growth. Currently, the Reit's properties are strategically located across Singapore's key industrial precincts. They are well connected to Changi Airport, major seaports and amenities via public transportation and major arterial road networks, which makes them attractive to tenants. The properties are purpose-built multi-storey warehouses and factories, with tenants engaged in diverse trade sectors including construction and engineering, manufacturing, logistics and warehousing, and research and technology.

MI-Reit's initial assets had a combined value of over $316 million, the largest of which being UE Technology Park at Pandan Crescent. Acquired for $115 million, the property has since then significantly appreciated in value, as have the others. The Reit announced a DPU of 1.52 cents per unit for the first quarter of FY2008, or the period from the listing date of April 19, 2007 to June 30, 2007. This works out to an annualised DPU of
7.58 cents, 3 per cent higher than the 7.41 cents forecast for the year stated in the listing prospectus.

Investment Highlights

Stable distributions and low risk to unit holders.

- Secure income stream from strong and diversified tenant profile.

- With about 70.8 per cent of total forecast rental income for the financial year 2008 from SGX-listed companies.

- Additional parent company guarantees for all tenants.

- Long average lease duration of 6.7 years as at listing date and unexpired lease term for underlying land of 47.8 years as at listing date.

- Limited interest rate risk as 100 per cent of borrowings are subject to a capped interest rate.

- Distribution policy of 100 per cent for FY2008 and at least 90 per cent thereafter.

- Minimal capital expenditure for the first three years.

- Contracted rental growth.

- Flexible building layouts with high building specifications.

Solid platform for growth

- Regional investment strategy provides greater universe of potential acquisition opportunities.

Experienced managers

- Senior executives have an average of 15 years experience in real estate investment management.

Growth

ACQUISITIONS are the integral driver of our business that will provide both growth and diversification benefits to the portfolio. MI-Reit has a target to acquire up to $500 million in property assets per annum. With its Pan-Asian mandate, MI-Reit seeks industrial properties in selected countries throughout Asia, such as Singapore, Japan, Hong Kong and Malaysia.

In the short time since listing, MI-Reit has signed conditional agreements to acquire properties in Singapore. These are:

- Plot 4A, International Business Park: An office park property in a sale and leaseback agreement signed on Aug 27, 2007.

- 7 Clementi Loop: A logistics and warehousing property - Agreement signed on 30 August 2007.

By developing strong relationships with tenants, and enhancing the desirability of the properties to meet tenants' expansion needs, MI-Reit aims to maintain high tenant retention levels, reduce vacancy levels and minimise interruptions in rental income.

To fund future acquisitions and asset enhancement, MI-Reit will use both equity and debt to optimise capital structure and cost. Having recently obtained a corporate Baa3 'stable' rating outlook by Moody's Investors Service, MI-Reit can increase its gearing capability to up to a maximum of 60 per cent. With a current aggregate gearing level of 8.6 per cent and a long-term target gearing ratio of between 40 per cent-45 per cent, MI-Reit has great operational flexibility to execute its acquisition growth strategy.

 

MACARTHURCOOK PROPERTY SECURITIES FUND

DUAL-LISTED on the ASX and the SGX, the MacarthurCook Property Securities Fund (MPS) is a diversified 'Property Managed Fund' holding interests in a range of listed and unlisted property trusts, and listed property related companies primarily across Australia, the US and Europe, including cash and fixed interest securities. The Fund has a market capitalisation at June 30, 2007, of approximately A$158 million and has an A$235 million portfolio invested across 52 listed and unlisted property trusts managed by 28 real estate investment managers.

Distributions for the 2007 financial year were 9.5 Australian cents per unit to Australian investors for the 12-month period to June 30, 2007, and 4.69 Singapore cents per unit to Singapore investors to June 30, 2007, after withholding tax for the period from listing on Dec 22, 2006 to June 30, 2007.

Based on the increased forecast distribution of 10.5 Australian cents for the 2008 financial year, Singaporean unitholders, who participated in the recently announced one for three renouncable rights issue, can expect to receive distributions totalling 8.74 Singapore cents on the new units for the remainder of the 2008 financial year (based on an AUD/SGD exchange rate of 1.2610, and assuming a 60 per cent tax deferred status and after applying 30 per cent withholding tax). This represents a forecast annualised income return of 8.80 per cent pa per new unit for Singapore investors.

Investment Highlights

- High, stable, regular low-risk income through quarterly distributions.

- Higher yielding investments: the 2008 forecast distribution yield is an attractive A10.5 cents per unit, representing a forecast annualised yield of 8.8 per cent for Singapore investors.

- Portfolio Diversification.

- Opportunity for Capital Growth.

MPS FY2007 Performance

Financial results for the year ended June 30, 2007 (FY2007) were recently announced, with the Fund posting a net profit for the year of A$34.3 million ? an increase of approximately 136 per cent over the previous 12-month period. Earnings per unit were A25.6 cents compared with A13.4 cents in the previous 12-month period, on a weighted per unit basis.

- 14 per cent increase in total return to Singapore investors since listing on Dec 22, 2006.

- Net Tangible Asset backing has grown by approximately 13 per cent from A$0.98 at June 30, 2006, to A$1.11 per unit at June 30, 2007.

- Closing unit price on the SGX increased 9.6 per cent (as at June 30, 2007) since listing on Dec 22, 2006.

- Market capitalisation has increased approximately 29 per cent from A$122 million on June 30, 2006, to A$158 million as at June 30, 2007.

- Distributions per unit for the 2008 financial year are forecast to increase to 10.5 Australian cents; for existing Singapore investors this equates to approximately 11.65 Singapore cents, assuming an AUD/SGD exchange rate of 1.2610, a tax deferred status of 60 per cent and after applying 30 per cent withholding tax.

MacarthurCook Limited
No. 200615904N
MacarthurCook Investment Managers
(Asia) Limited
1 Raffles Place, # 21-01 OUB Centre,
Singapore 048616
Main: (65) 6309 1050
Fax: (65) 6534 3942
Email:slyeoh@macarthurcook.com.sg
Website: www.macarthurcook.com.au