Recapitalisation of Orchard Industrial Property Fund

18 May 2009

The Directors of Orchard Property Limited, the Responsible Entity of the Orchard Industrial Property Fund (the "Fund"), announced today that it has entered into an Implementation Agreement with Growthpoint Properties Limited ("Growthpoint") to recapitalise and restructure the Fund via:

A capital raising of $200 million comprising:

    • A $56 million placement of securities to Growthpoint; and
    • A $144 million rights issue to be uinderwritten by Growthpoint; and
    • An internalisation of the Fund's management to be achieved via the stapling of Fund units to shares in a newly appointed Responsible Entity.

    The Proposal is subject to unitholder approval at a Unitholder Meeting proposed to be held in July 2009.

    The independent directors of Orchard Property Limited have agreed to unanimously support to Proposal in the absence of a superior proposal and subject to an Independent Expert concluding the Proposal is in the best interests of unitholders.

    To read the full announcement, please click here to be directed to the Orchard Industrial Property Fund ASX page.