Press Release

Quantum lists trust in Newcastle July 24, 2003 Kathy Mac Dermott Sydney's Quantum Syndicate Management is listing a single-property syndicate trust on the Newcastle Stock Exchange this morning. Quantum Property Trust No. 9 has a market capitalisation of $6.575 million and owns 25 per cent of the vehicle which recently bought a prime Brisbane CBD retail complex, known as the HMV Centre. QPT9's listing is part of a growing trend within the $6 billion syndicate sector as managers attempt to bolster both the liquidity and diversity of offerings. On March 28 the Brisbane-based Property Funds Australia listed its eight syndicate vehicles on the Bendigo Stock Exchange. At the end of June PFA secured the overwhelming support of its investors to roll the syndicates into a single, listed entity called the PFA Diversified Property Trust which holds $200 million worth of assets. In Quantum's case, the Sydney manager is keen on liquidity but wants to maintain its strategy of releasing single-property vehicles, according to Quantum Syndicate Management's director Peter Gribble. "Personally I like one property to one syndicate because people have a very focused direction on that property," he said. But market demand pressured Quantum to provide trading opportunities within the six-year life of their syndicates. "We were finding a lot of investors in our trusts were self-managed super funds who wanted more liquidity. "Listing on a stock exchange was attractive because of the corporate documentation provided and the associated regulation of the boards," Mr Gribble said. "In the case of QPT9, over 80 per cent of the investors fell into the self managed super fund category. "The Newcastle board was selected because it is relatively inexpensive and allows the listing of securities with just 50 shareholders," he said. Quantum plans to roll out future listings when the properties involved are valued over $20 million. Quantum bought the HMV Centre at 155 Queen Street from a private company associated with the recently retired chief executive officer of FKP Rod Forrester. The acquisition of the three-level complex fronting the Queen Street Mall represented Quantum's first foray into the Queensland market. Since 1994 Quantum has built up its total funds under management to just over $200 million. "To date the returns on our five syndicates completed [including the onsale of the properties] to the end of June 2002 averaged returns of 33 per cent per annum," Mr Gribble said. The syndicate market is emerging as a strong target for the smaller stock exchanges. General manager of the Newcastle Stock Exchange, Scott Evans said enquiries from syndicators had increased significantly during the past three months. The NSE, which commenced in December 2000 with an initial target of having 40 firms listed by the end of 2001, currently has eight entities on its board, including QPT9. The dramatic collapse of the tech market and the tough climate experienced during the past 18 months for initial public offerings has dented the NSE's original growth ambitions. However, Mr Evans said conditions were improving with another six floats expected to occur by the end of the calendar year on the NSE.