Worsley Inv Ltd Regulatory News (WINV)

10 Aug 2007 07:00

AXA Property Trust Ld10 August 2007 AXA PROPERTY TRUST LIMITED RELEASES COMPANY UPDATE 9 August 2007 AXA Investment Managers UK Limited (the Investment Manager) and AXA Real EstateInvestment Managers UK Limited (the Real Estate Adviser) are pleased to reportthat the Company has largely completed the investment of funds in a carefullyselected European property portfolio in accordance with its investmentobjectives. As at 30 June 2007 19 separate properties had been acquired acrossEurope at a gross cost of £127.3 million. In addition, the Company holds a 12%investment in Porto Kali, the Joint Venture Company that acquired a £210 millionDutch office portfolio (gross costs). The acquisition of a further asset(Pankower Allee, Germany) completed after the quarter end at a gross cost of£4.2 million. The investment portfolio (excluding Porto Kali) was independently valued at£134.1 million as at 30 June 2007(1). The property revaluation gain over theyear was £6.3 million (6.3 pence per share). The rental income stream is wellsecured both in terms of duration and tenant covenants. Diligent asset management is key to the Company's on-going strategy. InAgnadello, Italy, the Company has entered into a reversionary lease with a majorItalian logistics provider, increasing the secured rental income term from twoto seven years including a built-in rent uplift in July 2009. In return theCompany is undertaking improvement works to the property. A significant reduction in acquisition and one-off costs is anticipated in thefinancial year to 30 June 2008 as a result of holding a largely investedproperty portfolio. In the financial year to 30 June 2007 acquisition andone-off costs significantly affected the Company's Net Asset Value. The Board continues to review the hedging position of the net investment inEuros, which is currently un-hedged. Translation losses arising from a weakeningof the Euro against Sterling in the financial year to 30 June 2007 have reducedthe Net Asset Value of the Company. The Euro denominated income stream islargely hedged. As strong investor interest in the European property market continues to drivedown acquisition yields, we anticipate further capital growth in the propertyportfolio during the rest of the 2007 and in 2008. The Company is pleased to report that an updated factsheet presenting Fundperformance as at 30 June 2007 is now available on the AXA Investment Managers'website; http://www.axa-im.co.uk Please follow the prompts to 'Literature' and 'Factsheets'. -------------------------- (1) Property valuation undertaken by Knight Frank as at 30 June 2007 All Enquiries: The Company Secretary Northern Trust International Fund Administration Services (Guernsey) Limited Trafalgar Court Les Banques St Peter Port Guernsey GY1 3QL Tel: 01481 745529 This information is provided by RNS The company news service from the London Stock Exchange