THE CAPITALCAPITALan Investor Update ourierISSUE No.3 POST OFFICE SQUARE

Update Artist impression of Queen Street facade of Macarthur Central MACARTHUR CENTRAL UNDERWAY At the northern end of the Queen Street Mall and diagonally opposite Post Office Square major earthworks have commenced for the new mixed used development – Macarthur Central. Fronting Queen, Edward and Elizabeth Streets, Macarthur Central includes over 1 hectare of retail space over 3 levels and is the largest retail development in for a decade. A Woolworths supermarket and Big W Discount Department Store will be the major retailers for the centre. Plans for Macarthur Central also include an upmarket dining/food precinct for approximately 10 operators. Parking for the development as a positive factor for Post The Suncorp Metway tenancy also located retail component is 88 cars. Future Office Square as:- at the Queen Street entrance, has recently development for the site includes a 31 level • It should refocus retail activity on the been vacated prior to the Bank’s lease expiry commercial office tower. A heritage northern end of Queen Street where of 31 May, 2001. This was due to the tenant apartment conversion is also currently Post Office Square is located; having a duplicated long term tenancy occurring in the Macarthur Chambers • It may provide an opportunity for 7 (across Queen Street from Post Office building adjacent to the new retail days a week trading for Post Office Square) as a consequence of the merger of development. Square in due course; the Suncorp and Metway financial institutions. Mark Greer, CB Richard Ellis Retail • Its principal area of competition – the The decision of the Bank was logical given Director, the appointed leasing agent for dining precinct – is focused more on the long term lease that they have inherited the retail component of Macarthur Central, sit down, up-market and more opposite Post Office Square. believes this development will be extremely expensive food whilst Post Office We believe that the opportunity to release positive for all surrounding properties Square is a takeaway food court with its this space provides an excellent opportunity including Post Office Square. “Macarthur clientele more focused on price and to again make a far more attractive entrance Central reconfirms this precinct as the convenience. statement from Queen Street by the historic centre of Brisbane located within TENANCY UPDATE installation of a more modern and inviting the vicinity of the GPO, Central Station and fitout. We are confident of securing a new major retailers including David Jones, Coles, Located at the Queen Street entrance of tenant for this area in the next few months. Woolworths and Big W”. Post Office Square, the Pharmacy (which is Vodafone (who were a sub-tenant of We currently view the Macarthur Central a major tenant occupying 10.5% of the Advance Bank) have vacated a tenancy at the retail space) recently signed a new 10 year Adelaide Street frontage of the property. We lease. As part of the transaction, extensive are currently finalising a new tenancy for this refurbishment of this store has now space, in conjunction with Advance Bank, commenced. This refurbishment is who have an ongoing liability for the rent for expected to provide a far more appealing the balance of the lease term. Queen Street entrance to this property.

ACN 078 199 569

PFA INVESTOR UPDATE MARCH 2001 APX TENANT PROFILE: Progress EMMANUEL’S CARVERY In your last Investor Update we reported on the progress of the establishment of the Australian Property Exchange Limited (“APX”). It had been hoped that the exchange would be operating by March this year. However, this timeframe appears to have been delayed (probably until the middle of this year) with the Exchange’s approval still before the Australian Securities and Investments Commission. We will continue to keep you updated of the status of the APX and any fallback listing on the Australian Exempt Property Market.

Emmanuel's Carvery - Post Office Square ACCOUNTING UNDER Emmanuel's Carvery has been the food success story of Post Office Square for over 15 years. ONE ROOF Originally located in smaller premises in the Food Court when Post Office Square first opened for business, Emmanuel's has relocated into larger premises incorporating a modern fitout. The popularity of the shop is highlighted by the heavy patronage which, can be four to five persons deep at the counter, during its breakfast offering and significant lunchtime trade. The Board of PFA has decided that the ongoing accounting for the Funds under PFA’s control (including The Capital WHERE'S RALPH NOW? Collection – Diverse Sector Fund) would Since your last Investor Update, the Federal Government has made further now be conducted ‘in-house’ by PFA’s announcements regarding “Entity Tax Reform”. The controversial definition of “Collective accounting personnel. The introduction of Investment Vehicle” has not been pursued by the Government. It currently appears that GST and the requirement to produce the transparent/flow through tax nature of the Syndicate and the Trust will continue and interim accounts and reports has materially that entity tax reform will not have any material effect on the Fund’s entities. increased the accounting work required for each of the Funds and subsequently increased the expense of the ongoing accounting to all of our Funds by external SIX MONTHLY REPORTING accountants. The net result of this decision is a cost saving to the Funds, as the fees It is now a requirement under the Law or the Constitutions for the Funds. charged by PFA are less than that charged Corporations Law that six monthly However, audited accounts and the by external accountants for performing the audited accounts be completed for the Interim Manager’s report for the period same duties. Taxation advice and returns Capital Collection – Diverse Sector Fund. ended 31 December, 2000 are now and end of year financial accounts will Due to the additional onerous cost to the available upon request. Should you or continue to be provided by external Fund, we will not be sending a copy of your adviser require a copy please do accountants. six monthly reports to all investors as it is not hesitate to contact our Investment not required under the Corporations Services Division. both theprofileandvalueofthisproperty. this tenancy. Itshouldproveadvantageousto and attractnewtenantswhowishtotradeoff create opportunitiesfortheexistingretailers with apre-Christmasopeningofthetenancy. is hopedthatworkswillcommenceinMay authorities oftheACTinDecember, 2000.It retailer wasapprovedbythetownplanning accommodate theuseofthissignificant negotiations withthoseaffected. tenancy. We arecurrentlyfinalising relocated inordertoaccommodatethisnew Some oftheexistingtenantswillneedtobe expected tobeexecutedinthenextmonth. 1,300m significant retailer, willoccupyapproximately for theproperty. Theproposedtenant,a Update, alargespaceuserhasbeenidentified previously outlinedinyourlastInvestor considerable focustothisproperty. As Refocus Strategy Well Underway PFA INVESTOR UPDATE MARCH 2001 We believethatthisnewretailtenancywill A developmentapplicationto Over thelastsixmonths,wehavegiven 2 of space.Finalagreementsare HOMEWORLD the propertyatnextrevaluation. should haveapositiveeffectonthevalueof the fouryearperiod.Thefinalisedrental the officecomponentofpropertyover providing forongoingrentalgrowthfrom investors withthenewlyagreedrental Vendor. guarantee hasnowbeenreleasedtothe security heldtosecuretheVendor's rental of theconclusionrentreview, thecash contract intheprospectus.Asaconsequence oftheHomeworldpurchase the summary Reference tothisguaranteeiscontainedin the vendor’s guaranteeforthisspace. (i.e. untilJune,2004)atahigherratethan rental forthisspacethenextfouryears However, wehavebeenabletonegotiatethe cover atwoyearperiod(until30June,2002). Therentreviewwasinitiallyto completed. income. Thisreviewhasnowbeen which represents30%ofthisproperty’s Government’s leaseoftheofficecomponent to themarketrentreviewforACT ACT GovernmentRent Review We believetheresultwillbebeneficialto In yourlastInvestorUpdate,wereferred Recent article intheAustralianFinancialReview Recent article Update

THE CAPITALollection CAPITAL PAYG DEVELOPMENT Unravelled CONSULTANT With the introduction of GST and The New Tax System, we are now sending all investors a Appointed quarterly statement to assist with the determining of your PAYG instalment income. In October 2000, Property We have received some feedback from Corporation (QPC), Development Managers investors who have invested via the Syndicate, and Consultants were appointed as a that they have been advised by other fund development consultant/manager to Homeworld

THE managers of the actual amount of instalment as a consequence of the considerable income they should include in their quarterly refurbishment and tenancy relocation and co- Activity Statement. We do not provide the ordination issues related to the large space user instalment income amount to include in your going into the property. Activity Statement, as the calculation of this QPC’s charter also includes investigating figure will be determined by a formula using additional value adding development your last income year (ie the last tax return opportunities for the Homeworld property. you have completed).

CHANGING YOUR INVESTOR BANK DETAILS SERVICES OR MOVING PERSONNEL ollection Don’t forget to let us know Who to contact?

To ensure that you keep receiving your If you have any queries about your investment, monthly income distributions don’t forget to please contact our Manager - Investment Services, advise us if you change your bank account Bronwyn Risk or Mary Gallegos. details in order that the electronic credit distribution system does not reject the transfer. SOMETHING ABOUT Likewise, if you are changing your mailing MARY... address (as shown on the Syndicate or Trust Registers) we need to be notified. In July last year, Mary Gallegos joined Property Any changes need to be notified to us in Funds Australia's Investment Services division. writing and signed by the applicant/s who We welcome Mary to our team and trust that she signed the original application form. will be able to assist you with your general investment queries.

For further information contact:

Bronwyn Risk Manager - Investment Services Level 23, Central Plaza 2, Mary Gallegos 66 Eagle Street, Brisbane Q. 4000 PO Box 10398, Brisbane, Adelaide St. Q. 4000 CHANGE OF EMAIL Tel: (07) 3221 7170 ADDRESS Fax: (07) 3221 6729 Email: [email protected] WeCHANGE have recently shortened OF ourEMAIL email address to pfaltd.com.au.ADDRESS