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Macro is a shareholder of LEX Property Management Limited (LPML) which is an unlisted public entity specifically formed to provide investors with an opportunity to participate in high income returns and potential capital growth from retail property, primarily through its association with the franchisee for IKEA stores in Perth and Adelaide.
LPML's second offer was the LEX Property Fund (LEX PF) which was a unique opportunity for investors to participate in a well located Perth property with construction completed in February 2008 at which point its at completion value was $120 million. The property is leased to Cebas Pty Ltd ("Cebas"), the IKEA franchisee for Western Australia and South Australia. A total of $31.2 million in equity was raised . This provides returns to investors of 8.25% in the first full year post construction, 100% tax advantaged income for the PDS forecast period and a 15 year lease to Cebas.
The NTA position for the Fund is currently $1.193.
The first offer by LPML was the LEX Retail Property Trust, which raised $18m and issued capital in October 2005. LEX Retail Property Trust has performed well. Construction finished ahead of schedule, which meant that the tenant started paying rent earlier. The cost of construction was $850,000 less than originally projected and the benefit of this has flowed through to the investors with lower interest costs and a higher NTA position, currently at $1.233.
LEX Property Management Limited has a strategy of growth in its business through the development and acquisition of property assets. This growth can be achieved through LRPT's association with Cebas or alternatively through securing alternative retail assets that provide similar attributes.
LPML has a clear and focused strategy to protect and grow Unitholder value. If LPML is presented with any quality property assets, consideration will be given to its acquisition and the appropriate vehicle for the property.
The directors of LPML are Alan Tribe, Nick Wyatt, Steve Dixon and Peter Morrison. |
