Worsley Inv Ltd Regulatory News (WINV)

To: Company Announcements

Date: 14 December 2012

Company: AXA Property Trust Limited

Subject: Proposals for change to Investment Policy to a Managed Wind-down, Debt Management update

Proposals for change to investment policy and managed wind-down

Following the announcement on 21 August 2012, the Board of AXA Property Trust Limited (the "Company") has undertaken a review of the strategy for the Company and consulted with its major shareholders about the future direction of the Company.

Market conditions in the European property sector have remained difficult and have continued to impact the Company's performance and the market rating of the Company's shares. As at 12 December 2012, the market capitalisation of the Company was £30 million, and the discount to Net Asset Value at which Shares were trading had widened to 46.2% per cent.

Taking into account the above factors and views expressed by shareholders, the Board has decided to recommend to shareholders that the Company should commence a managed wind-down of its portfolio with a view to realising its investments prior to the continuation vote in 2015 and in a manner that achieves a balance between maximising the value from the Company's investments and making timely returns of capital to shareholders.

This proposal constitutes a material change to the Company's investment policy and requires shareholder approval before it can be implemented. Pending such shareholder approval, the Company will cease to make any new investments of capital save where necessary in the reasonable opinion of the Board to protect or enhance the value of any existing investments or to facilitate orderly realisations.

A circular convening an Extraordinary General Meeting to seek shareholder approval and containing further details of the managed wind-down process will be circulated to shareholders by March 2013.

Debt Management update

The Board is pleased to announce good progress following the announcement made on 21 August in respect to its approach on cash management and deleveraging.

The Company has successfully completed negotiations to extend the Agnadello loan expiring on 14 December 2012. The loan is now extended until 13 December 2013. AXA Property Trust has agreed to pay to the lender any surplus cash received on sales in the portfolio in excess of the allocated loan amount payable under the main facility. The payment amount is reduced to the extent the company's total available cash is below €2 million.

Further to the announcement made on 10 September 2012, the sale of the asset at Pankower Allee in Berlin, Germany has now been successfully completed with total sales proceeds received of €6.58m, of which €3.29m has been paid towards the main loan facility and €2.00m has been paid towards the Agnadello loan facility. The balance is being retained to replenish cash holdings. After these payments, the LTV ratios for the main facility and Agnadello facility are 46.6% and 43.5%, compared to LTV covenants of 60% and 65% respectively, based on the banks' property valuations.

All Enquiries:

Investment Manager 

AXA Investment Managers UK Limited

Broker Services

7 Newgate Street

London EC1A 7NX

Tel: +44 (0)20 7003 2345Email: broker.services@axa-im.com

Broker

Oriel Securities Limited

Joe Winkley / Neil Winward

Tel: +44 (0)20 7710 7600

Company Secretary

Northern Trust International Fund Administration Services (Guernsey) Limited

Trafalgar Court

Les Banques

St Peter Port

GY1 3QL

Tel: +44 (0)1481 745604

Fax: +44 (0)1481 745085