Outlook Spring/Summer 2009

15 December 2009

As 2009 comes to a close, our focus remains on stabilising all funds in order to resume regular distributions to investors if possible. Pleasingly, eight funds are now in a position to make distribution payments and in the latest edition of Outlook we provide a detailed update on the stabilisation strategy of all Orchard managed funds. KPMG has been working with our financiers to create more funding certainty within a number of funds. Significant progress has been made and successful outcomes have been achieved in regards to debt negotiation across eight funds. Debt extensions have been negotiated and/or covenants temporarily relaxed for the following funds:

  • Commercial Office Fund (COF);
  • Chevron Renaissance Property Trust;
  • Childcare Property Fund;
  • Primary Infrastructure Fund (PIF);
  • Diversified Property Fund New Zealand – a fund wholly owned by Diversified Property Fund (DPF);
  • Sydney Healthcare Trust;
  • 35 Clarence Street Trust, 233 Castlereagh Street Trust and 280 George Street Trust. These three trusts are 50% owned by DPF and 50% owned by COF; and
  • Sunwest Citrus Property Trust - a trust wholly owned by PIF.

DPF is expected to benefit from all of the stabilisation activities in these underlying funds. The revised terms will give Orchard more flexible and realistic timeframes and a broader range of options that will provide further longer term certainty for each fund. Negotiations in relation to DPF’s debt facilities are well advanced and are expected to be finalised by late March 2010.

In this edition of Outlook we discuss Orchard’s revised net tangible asset (NTA) reporting approach and we feature the childcare sector in Australia along with Nurture One, a leading Australian provider of high quality childcare services and a tenant of the Childcare Property Fund. 

Please click here to download a copy of the latest edition of Outlook.