Results! - Kinsmen

31 DECEMBER 2007
KINSMEN SECURITIES
QUARTERLYREPORT
Kinsmen
delivers
solid 07
results!
Kinsmen Unlisted
Property Trusts weather
the credit crunch!
Kinsmen Unlisted
Property Trusts
weather the
credit crunch!
The recent events in the US surrounding the sub prime mortgage
collapse and the resulting squeeze in the capital markets has
resulted in the listed property trust sector taking a battering over
recent months. This is especially the case for REIT’s (Real Estate
Investment Trusts) with high exposure to the US. Concerns about
a slowing economy in the US and a possible recession along with
the increased borrowing costs and changes to the exchange rate
are causing a loss of value in US properties. This in turn means an
erosion of returns to Australian Funds who have exposure in the
US. As a result of multiple factors the REIT market has been very
volatile over recent months. The Standard and Poors
ASX 200 Property Trust Index was down by 8.41% for the 2007
calendar year.
Kinsmen has in previous reports discussed the benefits of
effective diversification via property. Investors should note that
having investments in only REIT’s may not provide the effective
diversification in property being sought. This is because in the
listed environment investors are not only exposed to business
risk, they also have to consider market risk. As the equity markets
have seen a down turn so to has listed property.
The following graph shows the performance of different sectors in property trusts for the 2007
calendar year and compares the performance of Kinsmen Property Funds.
REITS vs Equities (All Ords index)
Performance Comparison 2007 Calendar Year
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Sep- Sep85
87
Sep89
Sep- Sep- Sep91
93
95
Sep97
Sep- Sep- Sep99
01
03
Sep- Sep05
07
^ Benchmark for Kinsmen Diversified Property Fund is a 50/50 composite index using the S&P ASX 200
Property Index and the Mercer Unlisted Property Trust Index
*Benchmark for the Direct Property Fund is the Mercer Unlisted Property Trust Index.
This is also relevant for comparing the performance of The Kinsmen Adelaide Commercial
Syndicate and The 309 Angas Street Property Trust.
www.kinsmen.com.au
The following chart further demonstrates the historic volatility of
listed funds by showing the premium paid over net asset backing over time:
As REIT’s are exposed to greater volatility, unlisted property
trusts managed by reputable fund managers with proven track
records can provide a more stable environment in which to
invest in property and not necessarily at the expense of returns.
“Unlisted Property Trust managed by reputable fund
managers with proven track records can provide a more
stable environment in which to invest in property and not
necessarily at the expense of returns.”
Official Cash Rate^
Credit Squeeze Continues
Market Update
The official cash rate increased when the RBA met in November
07 by 0.25% lifting to 6.75%. The RBA left rates on hold in
December in light of the increased borrowing costs faced by the
wholesale capital markets driven by the credit squeeze.
GDP Growth^
Westpac Economics reported in quarter three of 2007 that the
annual GDP growth was 4.3%, with activity up 1% in September
2007. The Westpac Melbourne Institute Leading Index which
provides an indication of the likely pace of economic activity
indicates a growth in GDP for 2008 of 4%. This level of activity
serves to underpin a strong demand for property as business
seeks to expand and exploit the opportunities in the market
place.
Construction and Housing^
New dwelling construction was slightly constrained during the
last quarter, however activity is still up by 5% compared to a year
ago. New dwelling approvals and renovations have been trending
higher over the last few months which should convert into
increased activity over the coming year. The continued increase in
borrowing costs may negatively impact this upturn in approvals.
In our previous quarterly report we discussed briefly the impact of
the tightening credit markets in the US and potential impact on
the price of debt. We also mentioned the need for fund managers
to monitor their financing structures in seeking the best outcome
for investors. The Reserve Bank of Australia commented late
last year that “In Australia, the pressures arising from the global
financial turmoil have been less pronounced than elsewhere
and the flow of credit to sound borrowers does not appear to
have been impaired. Nonetheless borrowing costs have risen
appreciably since mid year, particularly with business borrowers.”
This comment indicates that capital markets have driven the cost
of debt up over the last few months and intermendaries such as
non bank lenders and now banks have already started passing on
the increase to borrowers.
Since our last quarterly report, Kinsmen has undertaken a detailed
review of debt financing structures used across all our managed
funds. Kinsmen has structured it’s finance to hedge against
further increases in borrowing costs where necessary. This will in
turn hedge the returns to investors.
^Source: Westpac Economics
property investment & delivery
Your current Kinsmen investment opportunities
Barossa Valley Opportunity Fund
The Barossa Valley
Country Club Villas
A total of 158 spacious 4 star apartments
Novotel Barossa Valley
This sensational Barossa Valley development can never be repeated!
Kinsmen sought and obtained exclusive zoning for this
site in the Barossa Valley and there can be no other site
zoned for a resort on the floor of the Valley.
This is a unique fund investment opportunity for you
to share in development profits from this high quality,
tourist accommodation set in the heart of one of the
world’s greatest wine valleys.
This exciting development will consist of 158 one
bedroom, two bedroom and dual keyed apartments of
extremely generous proportions.
The Villas will be positioned amongst beautiful gum
trees presenting a fabulous choice of both golf course
and valley views. Exclusive recreational areas will
include a tennis court, pool and barbecue area. It is sited
adjacent the Tanunda Pines Golf Course and the Novotel
Barossa Valley Resort and Spa which comprises of 140
rooms and apartments, conference facilities, day spa,
restaurant, exercise trails and tennis courts. An easy one
hour drive from Adelaide.
Eligible investment for superannuation funds.
n $3 million capital raising n 54 month term n Minimum investment $100,000 n No regular distributions will be made until
profit has been earned in the later stages of the development. n Sophisticated and Wholesale investors only.
To register your interest or for a copy of an information memorandum please call Jim Papanicolaou or Craig Watson on 1300 767 223.
Disclaimer: Application to invest in any Kinsmen Fund can only be made on an application form attached to a Information Memorandum. Nothing in this
correspondence should be taken as personal advice as it is general advice. Potential Investors should seek independent professional advice.
www.kinsmen.com.au
Kinsmen Retirement Fund No. 1
124 new independent living villas
in South East Queensland
n Direct Property Fund Investment
n Retirement Village Sector
n High growth location in Bundaberg, Queensland
n Property value $11.7 million
n Min. investment $25,000
n Potential capital upside during early years of operation
n 7 year investment fund
n 100% tax deferred income
Eligible investment for complying superannuation funds
Register now! For this limited offer call 1300 767 223
Disclaimer: Application to invest in any Kinsmen Fund can only be made on an application form attached to a
Product Disclosure Statement. Nothing in this correspondence should be taken as personal advice as it is general
advice. Potential Investors should seek independent professional advice.
Island Rise Opportunity Fund*
Opportunity to share in development profits
of this exciting land development.
Hindmarsh Island’s
exclusive dress circle
land release!
From $120,000 to $585,000
IBE
R
C
S
B
SU
D!
Prestigious Island Rise presents an exciting choice of 54 fully
serviced homesites on Hindmarsh Island.
You must see it to believe it! Commanding views over the
River Murray to the historic town of Goolwa.
F U L LY
ABN 50 100 139 820
*Disclaimer: Application to invest in any Kinsmen Fund can only be made on an application form attached to a Information Memorandum.
Nothing in this correspondence should be taken as personal advice as it is general advice. Potential Investors should seek independent professional advice.
property investment & delivery
Current Kinsmen properties for sale!
Stunning Palm Beach
apartments from $1.6m
Solanto five star apartments are set right in
the heart of prestigious Palm Beach, one of the
world’s most sought after addresses in Sydney’s
Northern Beaches, only an hour or so to Sydney.
On offer are twelve home size apartments that are simply
stunning in both design and craftsmanship.
Cafes, restaurants and quality shopping are at your doorstep
on the shores of Pittwater. The Palm Beach Golf Course and
beautiful beaches are just minutes away.
Built over two levels with six on ground level and six above,
the apartments are serviced by lifts which go from the secure
and private underground garages to gardens on the roof top.
Priced from $1.6 to $2.45 million
Solanto apartments feature:
Two and three spacious bedrooms
separate lifts, each with internal
access to all levels
n Exquisite travertine floors
n Private Balconies or courtyards
n Ducted reverse cycle air-conditioning
n Miele appliances
n Private double space garage and storage
n Large rooftop terraces
n
n
Three
For private inspection call Glenn Lee of Raine & Horne on 0416 205 996 or Craig Blake of The Avenue on 0416 218 200
www.kinsmen.com.au
Affordable, quality plus
retirement lifestyle
A peaceful tree change lifestyle. Just a 40 minute drive to Melbourne.
Jefferson Place Retirement Villas are priced from $259,000
At Jefferson Place you have the choice of fully integrated
quality villas or townhomes, which are set in their own
landscaped ground offering a safe and a secure environment.
Club Jefferson, which is the personal club for the Jefferson
Place residents, provides fabulous facilities including:
Two swim spa pools
n In - house theatrette
n Large games room, including billiard table
n Indoor bowls
n Coffee shop & café
n Lounge areas
n Dining areas
n Walking track
n
Exceptional community title villas
with no deferred management fees.
Jefferson Place aims to provide its residents with a unique
proposition, for over 55’s living in units that are designed for
people to continue to live an active life whilst also contributing to
the community environment, as they wish.
Please contact Celestine Eramo
from ASL on 0408 111 383
property investment & delivery
Prestigious
Terrace Homes.
Halifax Street, Adelaide
Echelon presents a choice of two and three level
terrace homes in the prime and tightly held south east
corner of Adelaide’s CBD.
Multiple large open living areas with north facing
balconies and roof decks for you to enjoy the ultimate
in al fresco living. Features include:
n
n
n
n
11 of 13 have private lifts
Two and three car garages
Three metre high ceilings to living areas
Generous room proportions n Roof top deck and
balconies n Low maintenance n Rainwater storage
n
Minimum five star energy rating
5 SOLD!
For sales enquiries phone Ennis Partners on (08) 8239 0909
Web: www.echelonliving.com.au
Very affordable homesites.
Only minutes from Adelaide CBD
Beat the price rise!
Prices will definitely rise late February!
Limited opportunities are available in the current
release. You may also register now for the next release
118
ld!
o
s
cks
o
l
b
in late February. Excellent choice of Torrens title and
development sites are available.
Buy now with settlements after June 2008.
Torrens title home sites!
Absolutely unrepeatable value from only
$225,000
Call Greg Nybo at Century 21 on 0412 846 007
www.brompton.com.au
www.kinsmen.com.au
Hindmarsh Island’s
exclusive dress circle
land release!
From $120,000 to $585,000
Prestigious Island Rise presents an exciting choice of 54 fully
serviced homesites on Hindmarsh Island.
You must see it to believe it! Commanding views over the
River Murray to the historic town of Goolwa.
There’s simply nothing else like it on Hindmarsh Island.
Enjoy sailing, fishing, boating, skiing, horse riding, hiking,
golf plus restaurants, boutique brewery and cafes only
minutes away. Drive over the Hindmarsh Island bridge and
it’s the first turn on the left into O’Connell Avenue.
Visit www.kinsmen.com.au
Another quality project by
property investment & delivery
Call Tommy Kerr on 0411 881 848 or Bruce Pattullo on 0427 702 005
Weeks & Macklin Goolwa, 22 Hutchinson St, Goolwa, S.A. Phone 08 8555 2233
property investment & delivery
Fund Performance Summary
Fund
Distribution Return
Last
Last 12
Quarter
Months
Growth Return
Last
Last 12
Quarter
Months
Total Return
Last
Last 12
Quarter
Months
Funds
Under Management
Closing Unit
Price 31/12/07
OPEN ENDED
Kinsmen Diversified
Property Fund
1.81%
7.52%
0.49%
-1.52%
2.30%
6.00%
$12.23m
$0.9944
Kinsmen Mezzanine
Fund
3.01%
12.47%
0.26%
0.05%
3.27%
12.52%
$10.64m
$0.9798
Kinsmen Development
Fund
nil
nil
-4.39%
-9.54%
-4.39%
-9.54%
$19.79m
$0.9841
Kinsmen Direct
Property Fund
2.00%
8.15%
9.56%
11.90%
11.56%
20.05%
$11.25m
$1.1238
Kinsmen Mezzanine
Fund No. 4
(Note 2)
1.84%
7.77%
1.21%
6.83%
3.05%
14.60%
$7.19m
Refer to note 6
Kinsmen Adelaide
Commercial Syndicate
(Note 4)
1.55%
10.79%
0.47%
59.66%
2.02%
70.45%
$10.75m
Refer to note 6
Kinsmen Development
Fund No. 2
(Note 3)
*
*
*
*
*
*
$0.15 m
Refer to note 6
309 Angas Street
Property Trust
(Note 5)
1.46%
8.30%
0.11%
41.98%
1.57%
50.28%
$3.26m
Refer to note 6
CLOSED END
Note to Performance Summary
The returns shown are based on the Net Asset Backing at the beginning of each period shown. This will vary to the initial application
amounts, hence provide a different yield than if calculated based on your initial investment.
(1) The Kinsmen Development Fund consists entirely of investments in different projects with returns made progressively as the
projects are settled. Capital loss over the last quarter and very low growth over the past 12 months due to conservative profit
recognition policy built into the development fund unit pricing model.
10
www.kinsmen.com.au
Underlying Assets
Asset Allocation
Asset Profile and Comments
Retirement 38 %
Residential 39 %
Industrial 23 %
Investors received a steady 7.52%
distribution return over the previous 12
months. Good growth in investment
in Kinsmen Direct Property Fund now
offset by unrealised capital losses from
holdings in the Kinsmen Development
Fund.
Loans to:
• Solanto, Palm Beach, NSW
• Port Elliot Rise, Port Elliot, SA (Repaid December 07)
• Weeber Place, Drouin, VIC
• Jefferson Place, Garfield, VIC
• Southcott, Adelaide, SA
• 499 Victoria Street, North Melbourne, VIC
Retirement 41 %
Residential 59 %
We are working to ensure partial repayments of some of the loans occurs
in the short term. This will provide
greater liquidity to the fund which in
turn will flow to the Diversified Property Fund.
Joint Venture Equity interest in:
• Solanto, Palm Beach, NSW
• Jefferson Place, Garfield, VIC
• Weeber Place, Drouin, VIC
Retirement 51 %
Residential 49 %
The capital loss over the last quarter
resulted from the conservative profit
recognition model used for pricing
purposes.
Units in:
• Kinsmen Mezzanine Fund
• Kinsmen Development Fund
• Kinsmen Direct Property Fund
The PDS for both the Kinsmen Mezzanine Fund and the Kinsmen Development Fund have been withdrawn, hence no further
applications will be accepted. The Funds will continue to operate as normal until the maturity of projects.
Industrial 76 %
Retirement 24 %
The valuation of the AusFuel site has
been increased for pricing purposes to
reflect an increase in rental returns and
compression of the capitalisation rate
for industrial properties in the Darwin
area.
Tourism
48 %
Residential 33 %
Retirement 19 %
The Fund Manager is continuing to
work with loan holders to realise
the loans as quickly as possible for
maturity and winding up of the Fund
loans pending the syndication or
refinance of the underlying project.
• Flinders Ports Building, Port Adelaide, SA
• Boral Building, Hindmarsh, SA
Commercial 100 %
Rental operations continue in line
with budget, delivering a sustainable
distribution return of 8% p.a. with
good growth over the last year.
• Sweetwater, Meningie, SA
Residential 100 %
• Australian Fuel Distributors, Berrimah, Darwin, NT
• Liberty Villas, Bundaberg, QLD (interest there in)
Loans to:
• The Vineyard, Barossa Valley, SA
• City Edge at Brompton, Adelaide, SA
• Sweetwater, Meningie, SA
• Liberty Villas, Bundaberg, QLD
• 309 Angas Street, Adelaide, SA
(2)
(3)
(4)
(5)
(6)
Commercial 100 %
Rental operations continue to be in line
with budget, delivering a sustainable
distribution return of 10% p.a. on
application monies.
The Kinsmen Mezzanine Fund No. 4 distributes 8% p.a. on application monies on a quarterly basis with any excess returns paid on maturity of the Fund.
*The Kinsmen Development Fund No. 2 consists entirely of investments in specific development projects. In December 2006 investor’s capital (plus
30% IRR of completed projects less fund costs) was returned to investors. One project remains for completion with similar returns forecast.
Kinsmen Adelaide Commercial Syndicate - Distribution has been adjusted to 8% p.a. on application monies.
309 Angas Street Property Trust - Distribution is based on 10% p.a. on application monies.
Closed end fund without daily unit pricing, therefore no closing unit price available. Growth has been calculated based on net asset backing per unit.
property investment & delivery
11
Your latest Kinsmen project & property updates
SOUTHCOTT
Adelaide, SA
City edge at brompton
Brompton, SA
Coorong cove
Meningie, SA
COORONG COVE
The first four stages are now complete
and settled. The Gilles Street stage
is substantially complete with five
of the nine apartments handed over
to purchasers prior to Christmas.
Construction of the first three
townhouses in Echelon, (the final
stage), is progressing well and is set
for completion in the second quarter
of CY2008. The remaining ten will
commence construction in the first
quarter of CY 2008. Marketing is
producing strong results with two of
the remaining units sold off the plan
and one contract being prepared at
the time of writing this report. The
buoyancy of the Adelaide residential
market is having a positive impact on
sales prices which have been revised
accordingly.
Settlements on Stage 1 are well
advanced and should be completed
in the first quarter of CY 2008.
Remediation of the site for stage 2 is
effectively complete. There has been
strong interest in the first two releases
of this stage with approximately $8m
in sales or holds recorded to date.
Negotiations have occurred with
the bank to restructure the finance
to allow the Mezzanine debt to be
progressively repaid and replaced with
bank finance.
Please visit www.brompton.com.au
or contact Greg Nybo at Century 21
on 08 8258 4222 or 0412 846 007 for
further information
Following the receipt of final planning
approval, parties who had registered
an interest in purchasing land were
contacted. Many of these have been
converted into sales, and at the time
of writing this report 17 registrants
have signed contracts and 11 are
currently outstanding for signing.
There is however a general recognition
the entrance channel will not be built
until Lake Albert water levels recover.
The marketing target is to achieve
presales of at least 50% as soon as
possible in order to achieve financial
close and commence development.
Please contact the selling agent, Ennis
Partners on 08 8239 0909 for Further
information
Project Value
Location
Industry Sector
Developer
Anticipated Project Completion
12
Southcott
City Edge at Brompton
Sweetwater
$39.3 million
$42.4 million
$50.83 million
South Australia
South Australia
South Australia
Residential
Residential
Residential
Kinsmen Developments Pty Ltd
Angas Consortium J/V
Kinsmen Developments Pty Ltd
September 2008
September 2008
February 2012
www.kinsmen.com.au
port elliot rise
Port Elliot, SA
barossa project
Barossa Valley, SA
Another successful completion of
a Kinsmen development. The final
allotment was sold in November 2007
wrapping up the 19 allotment project.
Please contact Tommy Kerr from
Weeks and Macklin on 0411 881 848 for
further Southcoast land opportunities
at Island Rise, Hindmarsh Island.
CT
PROJLEETED !
COMP
solanto
Palm Beach, NSW
An Information Memorandum was
released in November 2007 providing
investors with an opportunity to share
in this first class development.
A presentation was made to the
Native Vegetation Council in
December 2007. The Council has
requested a further site visit to
clarify the extent on the ‘intact
canopy’ and the land north of the Golf
Course. Once clarification is provided
we anticipate approval to proceed
which will allow commencement of
detailed design. An international hotel
operator has expressed strong interest
in leasing the 158 units and we will
meet for discussions with them in late
January 2008.
Official completion of construction
occurred in October 2007, however
due to the rectification of builder
defects marketing efforts were
hampered and placed on hold. The
rectification process is now largely
complete and the marketing of the
first four luxury apartments will
commence and be released to the
market in January 2008.
For private inspection call Glenn Lee of
Raine & Horne on 0416 205 996 or
Craig Blake of The Avenue on
0416 218 200
For further information about
investing in Barossa Valley
Opportunity Fund please contact Jim
Papanicoalou or Craig Watson on
1300 767 223.
Project Value
Location
Industry Sector
Developer
Anticipated Project Completion
Port Elliot Rise
Barossa Project
Solanto
$3 million
$53.9 million
$24.23 million
South Australia
South Australia
New South Wales
Residential
Tourism
Residential (over 55’s)
Kinsmen Developments Pty Ltd
Kinsmen Developments Pty Ltd
Kinsmen Development Fund in JV with
Maricopa Services Pty Ltd
Fourth Quarter 2007
December 2011
September 2008
property investment & delivery
13
Your latest Kinsmen project & property updates
499 victoria street
Melbourne, VIC
Construction of the residential
apartment project in Brunswick
(the security) is proceeding well
and expected to be completed in
the second half of 2008. 100% of
the apartments are presold. The
developer is in the process of
arranging a refinancing which could
enable the early repayment of the
Kinsmen Mezzanine Fund debt.
jefferson place
Garfield, VIC
weebar place
Drouin, VIC
An opening of the Village was
held on 15th December 2007 after
construction was completed. The
event was attended by approximately
70 people which returned eight new
registrations of interest in addition
to the 4 contracts that have already
been executed. One further contract
is currently being prepared and
reservation fees taken on a further
four units. Enquiry levels remain
high and with the opening of the
Pakenham Bypass in December,
travel time from Melbourne has been
significantly reduced. Rectification
work is underway on some sewer
inspection points which should result
in issue of titles, closely followed by
settlements, during the next quarter.
Discussions continue with local
stakeholders to ensure this 24,000m2
site is developed to its full potential.
Please contact Celestine Eramo
from ASL on 0408 111 383 or view the
properties on the Kinsmen website.
Project Value
Location
Industry Sector
Developer
Anticipated Project Completion
14
499 Victoria Street
Jefferson Place
Weebar Place
$53.8 million
$11.1 million
$15.3 million
Victoria
Victoria
Victoria
Residential
Residential
Residential
U108 Pty Ltd
Kinsmen Gold J/V
Kinsmen Gold J/V
June 2008
July 2008
Early 2009
www.kinsmen.com.au
island rise
Hindmarsh Island, Goolwa SA
Marketing has continued since the
pre release of the development and a
focused strategy which commenced
over the Christmas period is now
expected to deliver strong sales over
the coming summer period to add
to the 4 allotments sold and 5 holds
already achieved. Detailed design
and documentation is complete and
tenders are being sought.
Discussions have been held with
the owners of the Hindmarsh Island
Marina and Kinsmen has an in
principle agreement to utilise the
existing sewage treatment plant at
the Marina subject to appropriate
planning approvals.
australian fuel distributors
Berrimah, Darwin NT
The one year anniversary of the lease
occurred in November 2007 and
triggered an increase in rent as per
the lease agreement. Rental income
has increased by 3.19% effective
9th November 07 for the next year.
The increase in rent along with
compression of capitalisation rates
has contributed to an increase in the
imputed value of the property to
$9.04 m, driving a strong uplift in the
Direct Property Fund unit price. The
Ausfuel site is well located and has
a strong outlook in the midst of a
buoyant Northern Territory economic
environment.
Location
Industry Sector
Developer
Anticipated Project Completion
A PDS was released to the market
in November 2007 providing an
opportunity for investors to share in
this quality retirement village product
located in the growth area of South
East Queensland. Capital raising is
continuing in the new year. Occupancy
levels have increased over the last
quarter with 70 of the 124 units now
occupied serving to grow the social
framework of the village with the
first Christmas party being hosted by
Village manager Darren Ey.
The increase in occupancy levels
not only strengthens the sense of
community but also strengthens
the valuation of the property , as
occupancy levels is a driver of the
overall valuation.
For a site visit of these dress circle
allotments or further information
please contact Tommy Kerr from
Weeks & Macklin on 0411 881 848.
Project Value
liberty villas
Bundaberg, QLD
Island Rise
AFD
Liberty Villas
$11.9 million
$9 million
$11.7 million
South Australia
Northern Territory
Queensland
Residential
Industrial
Retirement (rental)
Kinsmen Developments Pty Ltd
N/A
N/A
April 2009
N/A
N/A
property investment & delivery
15
Your latest Kinsmen property updates
flinders ports building
Port Adelaide, SA
Boral Building
Hindmarsh, SA
309 angas street
Adelaide, SA
The capital works commenced last
year involving the resurfacing of the
car park, air conditioner refurbishment
and the repainting of the entire
exterior are now complete. This has
significantly improved the aesthetics
of this quality commercial building in
the growth area of Port Adelaide.
The Hindmarsh area continues to
undergo a transformation with much
redevelopment activity in process.
The recent completion of the Channel
Seven building has further added to
the locality’s streetscape and appeal.
The area will continue to evolve into
the future with the development of
the former Gas Works depot and the
Clipsal site. This hive of development
activity serves to enhance the
attraction and value of this city fringe
location.
Kinsmen has lodged a preliminary
planning application with Adelaide
City Council as part of investigating
possible future exit strategies and
opportunities for this property and
is expecting to finalise preliminary
assessment by June 2008. Kinsmen
will be communicating with investors
to determine the exit strategy option
that they prefer to pursue.
The South Australian Housing Trust
is in the process of formalising the
agreement to lease for a further
five years from March 2008 and has
expressed an interest in holding a first
right of refusal to any further space
that becomes available in the building.
China Shipping has confirmed they will
be renewing their lease for a further
three year period from March 2008.
Project Value
Location
Industry Sector
Operations of the Boral Building
continue in line with forecasts
providing solid returns to investors.
Flinders Ports Building
Boral Building
309 Angas Street
$6.6 million
$4 million
$3.2 million
South Australia
South Australia
South Australia
Commercial
Commercial
Commercial
Kinsmen Securities
309 Angas Street, Adelaide
South Australia, 5000 Australia
Telephone 1300 767 223
Facsimile 1300 737 223
www.kinsmen.com.au
AFS Licence 222 650
Disclaimer: Applications to invest in any Kinsmen Fund can only be made on an application form
attached to a Product Disclosure Statement. Nothing is this correspondence should be taken as
personal advice as it is general in nature. Potential investors should seek independent advice.
property investment & delivery