Centro MCS 36 – International No.4 Investment Research September 2005

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Disclosure of Interests

Managed Investment Assessments Pty Ltd has received a fee from Centro MCS Manager Limited for the preparation of this Assessment.

The Directors and employees of Managed Investment Assessments Pty Ltd do not hold securities in Centro Properties Group or the Centro MCS 36 – International No. 4.

At the time of publication, neither Managed Investment Assessments Pty Ltd nor any associated entities have conducted any capital raising activity for the Centro MCS 36 – International No. 4.

Entities associated with Managed Investment Assessments Pty Ltd may have provided advice to the Responsible Entity of this Trust and may do so in the future.

Disclaimer

This report is provided to investors as general advice on interests in managed investment schemes. This report should not be relied upon as a specific recommendation as Managed Investment Assessments Pty Ltd has no knowledge of the financial circumstances of any individual investor. It is strongly recommended that investors consult their financial advisor prior to making any investment. It is also recommended that investors review reports on this product from other independent research companies. Managed Investment Assessments Pty Ltd strongly advises investors to read all material provided by the promoter of this product including the entire Product Disclosure Statement. Managed Investment Assessments Pty Ltd has no influence whatsoever on the past, present or future performance of this product or its manager, and does not accept any liability for financial loss incurred by investors who choose to invest in the product assessed in this report, or any other product.

© Managed Investment Assessments Pty Ltd 2005

Managed Investment Assessments Pty Ltd ABN 87 094 541 358 Level 3 North Tower, 333 Collins Street, Melbourne, Victoria, 3000 Email: [email protected] website: www.miaresearch.com Telephone: +61 3 9629 5777 Facsimile: +61 3 9629 5744

Centro MCS 36 – International No. 4 September 2005

Overall Rating: ‘Quality’

The Centro MCS 36 – International No. 4 syndicate has achieved an overall score of 73. It is rated as a ‘Quality’ investment

offer. Overall Rating 73 ‘Quality’

This report is valid for 6 months from the date of issue or the close of capital raising whichever is the sooner

Managed Investment Assessments Pty Ltd ABN 87 094 541 358 Level 3 North Tower, 333 Collins Street, Melbourne, Victoria, 3000 Email: [email protected] website: www.miaresearch.com Telephone: +61 3 9629 5777 Facsimile: +61 3 9629 5744

Centro MCS 36 – International No. 4 Annualised Returns to Investors

10% Income Return on Equity 8% The annual income distribution per unit on each $1 of equity 6% invested for each financial year Tax Advantaged 4% The proportion of the annual distribution that is tax 2% advantaged due to depreciation benefits, and building and other 0% allowances 2006 2007 2008

Funding Structure New Capital Raising (A$ mill) Interest Rate Management Property Purchase Price 400.305 Loan to value ratio 64% Stamp Duty & Acquisition Costs 12.925 Fixed for Interest rate structure Funds for capital expenditure 11.360 average five years US REIT Capitalisation Costs 1.886 Interest rate including margin Average 4.71% TOTAL ACQUISITION COSTS 426.476 Structure of Issue Less net US borrowings 253.539 124 million Ordinary No. of Units offered to TOTAL US INVESTMENT 172.937 Units and 71 million investors Plus syndicate and other establishment Unsecured Notes costs 22.012 25%‐50% of units and Centro participation TOTAL (rounded) 194.951 notes on offer Unit Issue Price $1.00 Capital Structure Management Fees Syndicate Equity Units 124.046 5% of property purchase Establishment Fee Unsecured Notes 70.905 price TOTAL (rounded) 194.951 On‐going Fee 0.73% MER 0.81% Net Tangible Asset Backing Distributions Quarterly Minimum Investment A$10,000 Per $1 unit $0.89 Syndicate Term Six to seven years

Centro MCS 36 Benchmarked We have benchmarked key elements of the Centro MCS 36 Syndicate against a basket of closed end unlisted property syndicates with a similar structure, that undertook their first capital raising within the last three years. The accompanying graph places the benchmark level for each element at zero.

Better than 30% Benchmark 20%

10%

0%

-10%

Worse than -20% Benchmark -30% Gearing Yield Tax Inter es t Mar gin MER Effectiveness

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Centro MCS 36 Benchmarked (cont’d) The extent to which elements of this Syndicate offer vary from the benchmark is expressed as a percentage. The gearing level of 60% is higher than the benchmark average. The Syndicate’s forecast first year yield of 8.25% is similar to the benchmark but significantly higher than retail property yields currently prevailing in Australia. The tax advantaged income received by investors in the Syndicate is slightly higher than the benchmark average. The interest rate margin is lower than the benchmark average. The MER is slightly lower than the benchmark average assisted by economies of scale due to the size of the Syndicate.

Centro MCS 36 – International No. 4 Strengths: Centro MCS 36 Syndicate (‘Syndicate’) provides investors with an exposure to a large geographically diversified portfolio of retail properties based in high density residential areas on the east coast of the United States. Key features of the Syndicate include a clever if complex investment structure, an equity hedge of 100% of initial investment in the US REIT and forecast distributions from the Product Rating 68 US REIT until 2011, an interest rate hedge averaging over five years ‘Attractive’ and a property portfolio with a high weighting towards non‐ discretionary retailers. This contributes to our rating of the Syndicate as an ‘Attractive’ product. Issues to be addressed: This is not a ‘set and forget’ retail property portfolio and will require intensive management during the Syndicate term. This issue is of particular relevance to the supermarket tenants that require expansion space. The success of the Syndicate hinges on the Centro Watt property management team, particularly the leasing department, taking an active asset management approach to maintaining and enhancing portfolio performance.

Centro MCS Manager Limited

Strengths: Centro MCS Manager Limited (‘Centro MCS’) is an established manager of Australian based retail property which has integrated what appears to be a strong management team in the United States through the joint venture with Watt Commercial, and the acquisition of the Kramont Real Estate Investment Trust. In rating Centro MCS we have taken into account the asset management Management Rating 81 capabilities of the United States East Coast management team based ‘Superior’ on our meetings with key executives and leasing officers. On this basis we rate Centro MCS as a ‘Superior’ manager in relation to its ability to manage the Syndicate. Issues to be addressed: Although the Australian based funds management team have ultimate responsibility for the success of the Syndicate, the main focus is on the involvement of the Centro executives on a day to day basis with respect to the management of the property management and leasing process that will determine the performance of the portfolio. The move to deploy Australian based executives into the United States based management team is an attempt to ensure the greatest possible integration of business cultures. Potential issues are likely to arise from a breakdown in communication between the ‘on site’ management team and the Melbourne head office.

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Centro MCS 36 – International No. 4

Overview Centro MCS 36 has invested in 30 properties in eight states that

formed part of the New York Stock Exchange listed Kramont REIT, purchased predominantly by the Centro (98.5%) and Watt Commercial (1.5%) in early 2005. The previously listed REIT comprised of 93 properties located across the east coast of the United States.

Centro MCS 36 is the third syndicate launched by this group based on ‘The third US based Centro a portfolio of United States shopping centres. The syndicate is the syndicate’ largest to be launched in Australia with total capital of $A426.5 million to be raised. The equity to be raised via this offer is A$195 million. We have been informed by Centro that due to a lack of access to retail property in Australia due to tightening property yields and strong investor demand it is becoming progressively more difficult to launch syndicates with Australian based retail property assets. Centro believes that United States based retail property is currently attractive based on the diversification and higher returns that can be delivered to investors.

The Syndicate will purchase interests in the assets through the

acquisition of units in the existing ownership entities rather than a

straight forward property acquisition which will ultimately be owned ‘Indirect holding in underlying by the US REIT. A 97% share of all the properties in the REIT will properties’ effectively be owned by Centro MCS 36 Syndicate. Investors are

referred to the Product Disclosure Statement for further information

as well as the Investment Structure section of this report.

As part of our assessment of the Fund, executives from MIA visited the offices of Centro Properties Group Limited on four separate occasions including: • Wednesday 1st June between 3pm and 5:00pm;

th • Thursday 7 July between 11am and 2pm; • Wednesday 27th July between 10am and 12pm; and

• Wednesday 31st August between 11am and 12pm.

Executives from MIA also met with senior executives of the Centro Watt joint venture in Philadelphia, United States on Friday 10th June ‘Multiple meetings held with and on subsequent days with various leasing and management management team’ executives in Pennsylvania, Georgia, Connecticut, New Jersey and New York.

Meetings were held with the following Australian‐based executives:

• Graham Terry, Chief Operating Officer • Tony Torney, General Manager ‐Unlisted Funds Management • Bryce Mitchelson, Funds Manager • David Omond, Senior Fund Manager ‐Syndicate • Justine King, Syndicate Portfolio Manager

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Meetings were held with the following United States based senior executives:

• Mark Wilson, Managing Director, East Coast

• George Demuth, Executive Vice President, Chief Operating Officer, East Coast • Michael Moss, Vice President, Director of Leasing, East Coast

• Michael Mortimer, Vice President, Controller & Asset Management, East Coast • Tom Lorenzen, Senior Vice President, Investment Management

• John Guminski, Vice President, Director of Property Management, East Coast

Investment Structure

The legal structure is typical of recent syndicates released by Centro MCS with the Syndicate issuing investors one unit in the Centro MCS 36 Trust 1 and one unit in the Centro MCS 36 Trust 2. The two units will then be stapled together under the Centro MCS 36 Syndicate. ‘Dual trust investment structure’ Each trust will own 48.5% of the US REIT. Thus the two trusts will own 97% of the US REIT with the 3% balance being owned by Centro and Watt. Centro have deemed this the most appropriate structure for this type of investment into the US to minimise withholding tax to investors. The Syndicate’s US REIT then owns the properties.

Investors will also be issued with a non‐recourse unsecured note.

Centro have advised MIA that 64% of investors’ initial investment will ‘Investors to be issued with be invested into the stapled trusts and 36% will be invested into the unsecured notes’ unsecured note facility. This form of debt security to the US REIT is

unsecured and therefore ranks behind secured debt in line with

normal equity.

The syndicate is seeking A$195 million of capital. We note that Centro are able to take up between 25% and 50% of equity in the Syndicate. ‘Centro co‐investment strategy in We have been advised by Centro that it is their (or associated entities) place’ intention to take up approximately 45%‐50% of the equity which equates to approximately A$90 million. Centro believe that this structure is favourable as it aligns the interests of the investors with that of the manager. We concur with this view although we do not give it undue weight as it also protects the long term management rights to the Syndicate. The balance of the total funds raised will be in the form of debt sourced in the United States.

The funds are expected to be allocated towards the repayment of

existing loan facilities established by Centro to purchase the portfolio ‘Debt funds to replace existing (A$162 million). Approximately A$11 million will be used for capital facilities’ expenditure over the first three years and the A$22 million will be

used to pay establishment fees and expenses.

The minimum investment by investors in Centro MCS 36 is $10,000.

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Returns

Centro MCS have forecast that the Syndicate is to return an average income return of 8.30% per annum over the first three years. More specifically the Syndicate is forecast to return 8.25% in the 2006 financial year rising to 8.35% in the 2008 financial year. The marginal growth in returns has been forecast based on a series of low but realistic rental growth projections within the financial model. Investors should note that the returns of the Syndicate have been boosted by approximately 1.50% per annum through the interest rate and exchange rate differentials that exist between Australia and the ‘Realistic distribution growth United States. Based on the purchase price attributed to the property projections’ portfolio, the underlying return from the properties is approximately 6.80%, a historically low capitalisation rate for neighbourhood‐type shopping centres in the United States. However, we note that this has been typical of major portfolio sales during 2005.

In our view there are a number of properties within the portfolio that

have tenancy issues requiring active management. A number of

properties have been highlighted as having the potential for the ‘Some active tenant management supermarket anchor or other major tenants to leave at or before lease required within property expiry. However we are aware that a number of supermarket tenants portfolio’ that have lease expiries in the short term have recently refurbished the

interior of their tenancies and Centro believe that they are less likely

to vacate on lease expiry. Some properties are facing competition from

expanded and renovated centres and supermarkets located in a close

proximity to the subject properties. The prospect of supermarket

tenancies being vacated is in stark contrast to the Australian

experience where it is rare for a national supermarket chain to

relinquish a site.

There are also a number of specialty type tenancies that are currently vacant and need to be filled by the Centro Watt leasing team. Although these do not make up a significant percentage of the overall ‘Vacancy factor an issue within portfolio they include anchor tenancies of non‐supermarket based specialty tenancies’ centres which if not leased to national or state based tenants may cause significant detriment to retail turnover within these centres and a flow on effect to property income.

Notwithstanding the current tenancy issues there is the potential for

upside returns in the portfolio as a large proportion of the specialty

shops are tenanted by private local operators. An enhancement of the ‘Potential for tenant re‐mix to tenancy mix through the addition of national operators may yield enhance returns’ more positive returns. In existing instances, national tenants appear to

pay higher rents than the former category of retailer.

We also believe that the skill and experience of Centro executives, now based in Philadelphia, combined with the tenant and local area knowledge of the Kramont team can drive these assets harder. During our site visit in the US the leasing representatives for each of the specific state based centres gave us an overview of their plans for each centre which appeared to be in line with what Centro have undertaken with many centres in Australia.

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Notwithstanding the income returns forecast by Centro MCS it is standard practice for MIA to model the Syndicate on a more negative basis to understand the potential outcome for investors under a more adverse scenario. This involves a tenancy by tenancy evaluation of future cash flows based on our knowledge of the retail market in the ‘Sensitivity of Centro model United States. We created a series of negative scenarios and then tested for fluctuations in net requested Centro executives to adjust their financial model to take property income’ into account these scenarios in our presence. For this exercise we assumed the following cumulative negative scenarios during the proposed syndicate term:

ƒ A 10% decline in rental income derived from the category

killer tenants contained in the portfolio;

ƒ An 8% decline in rental income derived from the discount department stores contained in the portfolio; ƒ A 10% decline in rental income derived from discount stores contained in the portfolio; ‘Centro model sensitive to fluctuations in rental income ƒ A 5% decline in rental income derived from general stores despite hedging and interest rate contained in the portfolio; management’ ƒ A 15% decline in rental income derived from non‐national tenants contained in the portfolio;

ƒ A 5% decline in rental income derived from national tenants contained in the portfolio; ƒ A 2% decline in rental income derived from other retail tenants (including banks) contained in the portfolio;

ƒ A 15% decline in rental income derived from office

tenants contained in the portfolio; and

ƒ A 10% decline of the rental income in the supermarket tenants contained in the portfolio.

We had created a hypothesis that this cumulative negative scenario

would result in close to zero capital growth recorded at the property

level during the tem of the syndicate. Based on the output from the

Centro model as provided by Centro executives, this hypothesis was

proven to be correct. The modelling of our cumulative negative

scenario indicated that investors would receive an IRR of 3.28% if the

properties were sold after six years. This by no means suggests that

we expect this outcome to be likely to eventuate. However, this

exercise clearly indicates the extent to which a weaker than expected

retail market in the United States may impact on investors returns.

Taxation Issues

It is anticipated that income received by investors will be 93%, 95% ‘High degree of tax effectiveness’ and 95% tax advantaged in the 2006, 2007 and 2008 financial years with an average tax advantaged component over the first three years of 94%. This means that payment of all income tax over this period is deferred until the units in the Syndicate are sold. However, this mechanism reduces the capital gains cost base for investors. Investors must seek advice from their accountant or financial advisor in relation to this matter. It is important to note that the tax advantage income from the properties in the US covers the income distributions from the US REIT and interest paid to investors on the unsecured note facility.

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Capital Expenditure

We have been advised by Centro that they intend to initially draw

down US$8.9 million (A$11.4 million) for capital expenditure and

leasing incentives over the first three years of the Syndicate. The

balance of US$10.9 million will be drawn down during the term of the

Syndicate. The Centro Watt leasing team have outlined to us the

capital works expected at all the centres over the next six years, none

of which was of particular significance.

‘Significant capital expenditure Net Asset Value programme over syndicate term’ The recent introduction of International Accounting Standards in the

Australian market has meant that all managed investment schemes have to comply with these new standards. The PDS states that the financial reports produced by the Trust will comply with this new legislation. ‘Normal initial Net Asset Value outcome’ Centro MCS have calculated the Net Tangible Asset Backing for Centro MCS 36 Syndicate to be $0.89 which is slightly higher than the benchmark average for closed end retail property syndicates of $0.88.

Loan to Value Ratio The US REIT is expected to borrow approximately US$199 million (A$262 million) which translates to a 64% loan to value ratio or 60% of total acquisition costs which includes the initial draw down of US$8.6 ‘Reasonably high LVR in context million (A$11.4 million) at settlement to cover operational capital and of portfolio’ lease incentives for the first three years. We have been advised that a further US$10.9 million (A$14.4 million) is expected to be drawn down during the term of the syndicate for planned capital expenditure. After total draw downs the Syndicate is expected to have a debt ratio of 57% of total assets.

Interest Rate Management We have been advised by Centro that a number of the properties in the Syndicate are already the subject of debt finance through the previous US REIT Structure (Kramont). We understand that upon commencement of the Syndicate, the debt will transfer to a new loan facility which will be in the name of the US REIT. As previously Interest Rate Swap Rates mentioned this loan facility will be US$199 million (A$253 million). % The loan facility being taken out in US dollars further mitigates the 1ST Tranche (8 years) 4.17% 2nd Tranche (5 years) 5.11% interest rate risk inherent in this type of investment as income being 3rd Tranche (3 years) 4.92% derived from the Syndicate and interest payments on debt are both in US dollars. The Syndicate’s debt facility has been fixed over a mixture of terms. ‘Substantial interest rate hedging We have been advised that the interest rate has been 100% fixed for and on‐going management in the first three years, 56% for the next two years and 36% until the end place’ of the Syndicate term. This mitigates the risk for the first three years and to a lesser extent thereafter. The Syndicate’s financier has applied an average margin of 0.85% to the debt facility which is similar to margins applied to this form of financing.

We have been informed by Centro that the average interest rate payable over the six year period is 4.71% including margin.

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Currency Hedging

We have been advised that Centro have put in place an equity hedge

on the initial equity invested into the US REIT as well as the forecast

distribution that is being delivered into the Syndicate from the US

REIT for the first six years of the Syndicate at an average rate of

A$0.74 against the US dollar. We note that this equity hedge does not ‘Currency hedging in place for cover investor funds for capital gains/losses or increases in initial investment and distributions from the US REIT. We have been advised that the distributions, not capital growth’ forward hedge rates on forecast distribution for the next three

financial years are US$0.76 in the 2006 financial year decreasing to

US$0.73 in the 2008 financial year. An additional hedging mechanism

is being put in place through the debt component being borrowed in

United States currency. This mitigates rather than completely

diminishes the risk to investors from currency fluctuations.

Fees and Commissions The level and structure of management fees is slightly different to property syndicates with Australian based assets. As the management is being undertaken by Centro’s Australian based operations and ‘Fees split between two offices’ property management and leasing activities being undertaken by Centro Watt US East Coast office the management fees are being split between the two offices. These fees are as follows: Centro Watt will be paid a management fee, which escalates depending on the gross value of the portfolio, to manage the US REIT. Centro Watt will be paid 0.40% of the gross value of the portfolio under US$1 billion, 0.30% of the gross value of the portfolio between US$1 billion and US$2 billion, 0.25% of the gross value of the portfolio between US$2 billion and US$3 billion and 0.20% of the gross assets of the portfolio over US$3 billion. This fee has been forecast to be US$1.25 million in the 2006 financial year. In addition to the management fee Centro Watt will be paid a property and leasing management fee of 4.5% of the gross rental income per annum which ‘Complex and substantial set of has been forecast to be US$1.42 million in the 2006 financial year. This upfront fees’ fee is paid out of the gross income of the US REIT which is typical for many property syndicates. These fees, along with other expenses incurred by the US REIT, will be paid in US dollars from the US REIT prior to being distributed to the Australian based syndicate for distribution to investors.

In a fairly complicated calculation, Centro Watt will also be paid a

REIT establishment fee of 1.88% of $79.9 million (which is 64% of

equity being sought) for the raising of capital. This equates to US$1.5

million and will be paid out of the US REIT once the Syndicate has

been settled. ‘Higher than normal up‐front fees’ Centro (Australian based operations) will take an upfront fee equal to 5% of 97% of the purchase price of the properties which equates to $20.02 million. This percentage as an upfront fee is typical of closed end property syndicates. We note that Centro will pay commissions to financial planners out of this fee. Overall, the combined upfront fees paid to Centro Watt and Centro’s Australian based operations are 5.4% of property purchase price which is higher than normal due to the two tiered management structure.

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Centro is permitted to take an annual management fee of 0.25% of gross assets of the Syndicate (97% of the value of the value of the US

REIT) and 2% of the annual total portfolio income to the Australian Syndicates, which equates to A$1.437 million in the 2006 financial year and approximately 0.34% of Syndicate based total assets. This fee is below the benchmark average for a Syndicate of this type. We note that Centro have not deferred a percentage of management fees. We note that if the Syndicate term is extended Centro is entitled to increase their fee to 0.425% of gross assets and 4.25% of annual total ‘Centro motivated to achieve a income. The increase in fees to this level has been present in previous higher capital return’’ Centro products. Centro have advised us that the Management Expense Ratio is 0.81% of total assets for the 2006 financial year. Overall, the combined on‐going management fees taken by Centro Watt and Centro are approximately 0.72% of Syndicate total assets which is higher than the benchmark average. Portfolio Income Breakdown Upon sale of any properties Centro is entitled to take a fee of 2.5% of by Gross Income Special- ties the gross sale price achieved plus 10% of any capital gain above a 53% $1.05 unit return. This is a departure from the industry norm in that it motivates Centro to achieve a higher capital return. There is a standard removal fee payable should Centro be removed as Anchor 47% Responsible Entity of the Syndicate amounting to 3% of the 97% of the US REIT at the time of removal.

If investors choose to transfer their stapled securities and unsecured notes to Centro there will be a maximum 2% transfer fee applicable.

Portfolio Diversification by Value Tenant Covenant Non super- Centro MCS 36 is investing in open‐air retail strips which are mar ket based predominantly anchored by supermarkets (47% by gross income). Super- 24% Details of the supermarkets are outlined below. The income stream of mar ket the Syndicate significantly depends on the financial performance of based 76% these supermarkets. ƒ Pathmark is a listed supermarket chain is based in New Jersey

and has 142 supermarkets located in New York, New Jersey and Philadelphia. ƒ Acme Markets is a wholly owned subsidiary of the Albertson Group, a food and pharmacy based company in the United

Retail Centre Type Free States. Acme Markets is based in Bosie, Idaho and there is by Value standing s'market currently 135 stores under the Acme banner. 3% ƒ Giant supermarket and Stop N’ Shop supermarket are owned Comm Centre by Ahold. 27% ƒ Food Lion supermarket is owned by Delhaize Group. N'hood Free Centre standing There are a further seven supermarket anchors which are privately 68% retail 2% owned.

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Lease Expiry Profile Lease Expiry Profile The lease expiry profile of the Syndicate averages 5.4 years by income. by property value 60% We have been advised by Centro that the portfolio currently has 4.2%

40% of leases by income in holdover within the 93% occupancy rate.

20% There will be ample opportunity for Centro to remix the specialty shop tenancy profile in most centres during the Syndicate term. 0% Holdover 4-6 years 7-9 years 10+ years 3 years Geographic and Sector Allocation

The Centro MCS 36 portfolio consists of 25 open air retail centres (14 supermarket based and two centres with an office component), three free standing supermarkets and two free standing retail properties in the United States. The properties are located on East Coast of the United States with 15 properties (50%) located in Pennsylvania. There

are also properties located in New York (14%), Connecticut (10%),

Georgia (10%) with the balance of the properties located in New Jersey, Virginia, North Carolina and South Carolina.

Exit Strategy and Liquidity We have been informed that it is Centro’s current intention to roll ‘Normal Centro exit strategy’ over the Syndicate at the end of the initial investment term if they deem it to be in investors’ interests. However, Centro have structured the Syndicate to allow investors to exit the investment, should they wish, at the end of the initial term by offering investors cash or units ‘Syndicate should be considered in ASX listed Centro Properties Limited. This exit mechanism has illiquid’ been adopted by Centro in previous syndicates and is viewed by MIA as an attractive exit mechanism for investors in unlisted property trusts. Investors are encouraged to read the PDS for further information.

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Centro MCS 36 – International No. 4 Property Portfolio This section of our report outlines our inspection of each property asset in the Centro MCS 36 portfolio. For further information on the portfolio assets please refer to the Product Disclosure Statement and Property Booklet produced by Centro MCS Manager Limited where comprehensive information is available.

Geographic Allocation by location The majority of the centres in the portfolio are located in highly dense suburbs on the East Coast of the United States on corner blocks which State No of % of have good visibility. properties Portfolio Pennsylvania 15 50% 550 West Germantown Pike is located adjacent to the 82,000m2 Connecticut 3 10% Plymouth Meeting Mall in Plymouth Meeting, a suburb of New York 4 14% Georgia 3 10% Philadelphia. The property is located approximately 100 meters from New Jersey 2 7% the Pennsylvania Turnpike and Interstate 475 on West Germantown Virginia 1 3% Pike which is the main thoroughfare through Plymouth Meeting. The North 1 3% property is a free standing pad leased to the Commerce Bank, a Carolina South 1 3% rapidly growing and aggressive bank in the United States. The Carolina property was formerly leased to a restaurant chain and was converted TOTAL 30 100% to suit the Commerce Bank in late 2004. The Commerce Bank is known to pay premium rents for prime sites such as this one. The property is located adjacent to the Centro Watt’s east coast office. An executive of MIA visited the site on Friday 10th June 2005. 550 West Germantown Pike Plymouth Meeting, Collegeville Shopping Center in Collegeville is located adjacent to Pennsylvania the Ursinus College, one of the top 50 liberal arts universities in the

Location 18 miles north west of United States. The university has approximately 1500 students and Philadelphia 400 employees. There has also been major growth in research and Average daily development facilities operated by Pharmaceutical companies such as traffic count 73,000 vehicles CSL, Smith Kline & Beecham. This has provided a much needed Population ‐ 3 mile radius 68,000 approx rejuvenation of local surrounding area. Average Collegeville is an air open centre located near the corner of Route 22 Household and Main Street Collegeville. The centre is anchored by Acme Income US$72,000 GLA 3,800 square feet Markets. The Acme at Collegeville has recently been remodelled to Commerce include a pharmacy and cosmetics section. Other tenants in the centre Bank 3,800 square feet include Annie Sez (discount department store) which operate 47 stores on the east coast five of which are located in Pennsylvania, Eckerd Pharmacy, a major pharmacy chain which operates a number Collegeville Shopping Center of stores. Collegeville, Pennsylvania An executive of MIA visited Collegeville Shopping Centre on Friday Location 30 miles north west of 10th June 2005 at 12pm. The centre was found to be in good repair with the Philadelphia adequate car parking. The centre has undergone some minor capex Average daily traffic count 10,081 vehicles last year which included items such as lighting and replacing the side Population ‐ walk. The car park was being repaved during our visit. The centre was 3 mile radius 37,000 approx found to have good visibility and good access/egress from West Main Average Street. The car park was approximately 50% full and most people Household Income $84,000 were patronising the food stores located at the centre including GLA 110,00 square foot McDonalds. Acme Markets 52,200 square feet Annie Sez 13,500 square feet

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North Penn Marketplace is located in the suburb of Lansdale, North Penn Marketplace Pennsylvania. The centre is located opposite the North Penn High Lansdale, Pennslyvania School which services approximately 3,300 students and 1 mile from Location 25 miles north of Philadelphia the head office of Merck Pharmaceuticals, a global pharmaceutical Average daily research company that employs over 5,000 staff. traffic count 19,721 vehicles North Penn Marketplace is an open air centre with a Weis Population ‐ 3 mile radius 59,000 approx supermarket forming a ‘shadow’ anchor, that does not form part of Average the Syndicate. The Photoworks store and Total Body Fitness are Household subject to short term leases. The Total Body Fitness tenancy is in an Income US$72,000 awkward position within the centre and does not lend itself well to GLA 57,898 square feet (excluding Weis) being spilt into two tenancies. Centro Watt has advised us that they Total Body are in negotiations with Nova Care, a medical rehabilitation company Fitness 12,753 square feet associated with the Central Montgomery Hospital. Other tenants of The centre has two pending vacancies the centre include two free standing pads, one occupied by the Harleysville bank and the other by McDonalds. MIA executives visited North Penn Marketplace on Friday 10th June 2005 at 2.30pm. The centre was found to be in good condition with easy access from both Valley Forge Road and Sunneytown Pike. Centro Watt advise that they will refresh the car park and upgrade the lighting and façade of the centre over the next three years. County Line Plaza County Line Plaza is located in the suburb of Hilltown. The property Souderton, Pennsylvania is located only a few minutes from the Interstate 309 which leads east Location 25 miles northeast of to the CBD of Philadelphia. Traditionally the local region has been Philadelphia heavily dominated by the manufacturing sector. However over recent Average daily traffic count 4,318 vehicles years sectors such as pharmaceutical, health care, information Population ‐ technology and education have become established and this has 3 mile radius 40,000 approx promoted residential growth in the area. Average Household County Line Plaza is an open air centre anchored by a Clemens Income US$59,000 supermarket. This section of the Philadelphia metropolitan area is GLA 175,079 square foot where Clemens originated and has a loyal customer base. The centre is Clemens soon to open an Outlet Marketplace which will be leased to Vanity supermarket 39,642 square foot Outlet Fair as a big box discount centre. The space was formerly tenanted by Marketplace 84,935 square foot Ames discount department store and Centro Watt is still receiving rent for this currently vacant space. An executive of MIA visited the centre on Friday 10th June 2005 at 3.25pm. The centre was found to be modern in appearance and well Mt Carmel Plaza maintained. The centre has good access from both Route 113 and Glenside, Pennsylvania County Line Road. Location 12 miles north of the Philadelphia Mt Carmel Plaza is located in the Glenside commercial district. The Average daily centre backs onto the train line and is less than 1 mile from Acadia traffic count 8,889 vehicles University which has over 3,500 students. The 14,000 square foot Population ‐ 3 mile radius 40,000 approx centre’s main tenant is Dollarland. Other tenants include Domino’s Average Pizza and a local Chinese restaurant. Household th Income US$59,000 An executive of MIA visited the centre on Friday 10 June 2005 at GLA 14,504 square feet 5.10pm. The centre is in average condition and was not particularly Dollarland 9,600 square feet appealing in its design or retail offer. Dollarland is a local company with approximately 12 stores based in the Philadelphia metropolitan area of

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Chalfont Village Shopping Center is located in Chalfont, Bucks County. The suburb of Chalfont is a well established area. The centre

is located near to County Line Plaza and shares similar demographics and population growth. Chalfont Village Shopping Centre is an open air centre predominately occupied by long term non‐national tenants. The major tenant, Better Bodies Gymnasium, has been at the property since 1995 and recently expanded. They have recently renewed their lease for a further five years with a 4% rent increase. The leasing team at Centro Watt have Chalfont Village Shopping advised us that they are currently seeking to lease a vacant specialty Center shop to a deli which will service the local office workers. Chalfont, Pennsylvania th Location 25 miles north of An executive of MIA visited the centre on Friday 10 June 2005 at Philadelphia 4.10pm. We have been informed by Centro Watt that the architectural Average daily design of the centre is mandated by the municipality of Bucks County traffic count 6,846 vehicles in order to keep a country feel to the centre. The centre is earmarked Population ‐ 3 mile radius 40,000 approx for some cosmetic upgrades over the next 24 months. Average Bensalem Square is located on the corner of Knights Road and Dunks Household Income US$82,000 Road in the suburb of Bensalem. The centre is located in close GLA 46,000 square feet proximity to the Interstate 13 which leads to the Philadelphia CBD. Better Bodies 22,785 square feet The immediate area surrounding the centre is densely populated Gymnasium predominantly represented by a large Indian and Pakistani Vacancy 1,700 square feet community. Bensalem Square is an open air centre anchored by a Pathmark Bensalem Square supermarket. The store was recently refurbished and remodelled to Bensalem, Pennsylvania include a pharmacy and ATM at a cost of approximately $2 million. Location 12 miles north east The majority of the other tenants are long term tenants and have been of the Philadelphia at centre for between 8 and 12 years. These tenants predominantly Average daily traffic count 9,004 vehicles service the local Indian community. Population ‐ th 3 mile radius 96,000 approx An executive of MIA visited the centre on Saturday 11 June at Average 9.45am. At the time of inspection the centre was very quiet as many of Household the shops do not open until 10am on a Saturday. The centre is clearly Income US$56,711 visible from both access roads and the car park is easily accessed. GLA 72,000 square foot Pathmark 49,726 square feet Woodbourne Square is located in the suburb of Langhorne supermarket Pennsylvania. The centre is located opposite the 1.1 million square The Pathmark is lease due to expire on 30 June 2009. There is a further 5 year foot Oxford Valley Mall. The centre does not have a supermarket option. We have been advised by anchor with tenants consisting of service businesses and retail food Centro Watt that they think Pathmark outlets such as Subway. will take this up The largest tenanted space (8,325 square feet) was occupied by a medical rehabilitant specialist, Rehab Place at Oxford Valley. We have been informed by the Centro Watt management that they are in Woodbourne Square negotiations with a real estate broker that specialises in medical Langhorne, Pennsylvania Location 30 miles north west rehabilitation companies. Centro Watt has informed us that it would of the Philadelphia cost US$160,000 to fill in the swimming pool space. Population ‐ th 3 mile radius 83,000 approx An executive from MIA visited the centre on Saturday 11 June 2005 Average at 10.45am. The centre is looking a bit tired but is located in a dense Household demographic area with approximately 80,000 people living within a 3 Income US$69,245 mile radius. GLA 29,000 square foot

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Whitemarsh Shopping Centers located on the corner of Ridge and Whitemarsh Shopping Center Pike Roads, in the suburb of Conshohocken. Ridge Road connects Conshohocken, Pennsylvania with Exit 7 of the Interstate 475 which is the main arterial freeway Location 15 miles north west of Philadelphia running north south across Pennsylvania. Conshohocken is a highly Average daily dense middle class suburb with a large white collar workforce. traffic count 22,000 vehicles Whitemarsh Shopping Centre is an open air centre which has recently Population ‐ 3 mile radius 55,000 approx been refurbished by Centro Watt. The centre is anchored by a Clemens Average supermarket which are currently three years into a 10 year lease. We Household noted that the supermarket caters for the higher quality end of the Income US$78,762 food market. GLA 67,000 square foot Clemens 40,000 square foot An executive of MIA visited the centre on Saturday 11th June 2005 at Wine & Spirits 1.10pm. The centre has good street visibility and access and egress to Shoppe 10,200 square feet Ridge and Pike Roads. As a result of the recent renovation undertaken

by Centro Watt the centre is one of the more aesthetically pleasing

centres in the portfolio.

th 69th Street Plaza 69 Street Plaza is located on Patterson Avenue in the inner western Upper Darby, Pennsylvania suburb of Upper Darby. Upper Darby is an established suburb of Location 10 miles west of the Philadelphia with a strong ethnic mix. The centre is located at the east Philadelphia CBD side of what is known as the 69th Street Retail District. The centre is Average daily located adjacent to a Pathmark supermarket. traffic count 17,939 vehicles th Population ‐ 69 Street Plaza is an open air centre anchored by National Wholesaler 3 mile radius 370,000 approx Liquidators. National Wholesalers is a 3rd generation wholesale Average business which sells overruns and remainders particularly focused Household towards their ethnic clientele. We have been informed by Centro Watt Income US$41,728 GLA 42,000 square feet that National Wholesalers have stated their intention to occupy the National 26,061 square feet entire centre and will take up other tenancies as they become Wholesale available. Other tenants of the centre include Blockbuster and National Wholesale Liquidators is New Dollarland. York based chain and has approximately 50 stores located across An executive of MIA visited the centre on Saturday 11th June 2005 at New York, Washington, Chicago and 5:15pm. The centre was found to be fitting with the local community Detroit. environment. The centre is clearly visible when approaching from

both the north and south ends of 69th Street.

Cherry Square is located on the corner of Main Street and Cherryville Road, in the township of Northampton, 5 miles north of Bethlehem. The township of Allentown, which forms part of the Lehigh Valley, Cherry Square has experienced population growth over recent years due to the high North Hampton, Pennsylvania housing costs in New York. The property is located near to the Location 7 miles north of Interstate 475 (the Pennsylvania Turnpike) which heads south to Bethlehem Philadelphia. Northhampton is a highly dense middle class suburb Average daily with 30,000 people residing within a three mile radius of the centre traffic count 3,038 vehicles with an average household income of $51,000. Population ‐ 3 mile radius 30,000 approx Cherry Square is a 75,000 square foot open air centre and is anchored Average by a 52,000 square foot Redner’s Warehouse Market supermarket. Household Other tenants include Subway and Family Dollar. The centre was Income US$51,321 GLA 75,005 square feet refurbished in 1999. There are currently no vacancies at the centre. Redners An executive of MIA visited the centre on Sunday 12th June 2005 at Warehouse 52,000 square feet 9.45am. The centre has good street visibility and access and egress to Main Street and Cherryville Road.

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Kline Plaza is located on the corner of South 25th Street, in the township of Harrisburg. Harrisburg has substantial state government occupied office space including housing the State Gaming Authority,

the State Agricultural Authority and Blue Cross/Blue Shield a health insurance company amongst others. The property is located nearby the Interstate 76 (the Pennsylvania Turnpike) which heads east to Philadelphia. The centre is located opposite the Harrisburg High School which accommodates approximately 3,000 students.

Kline Plaza Kline Plaza is an open air centre and anchored by a Giant Food Harrisburg, Pennsylvania supermarket and A.J. Wright a general discount department store. The Location 105 miles west of the centre has approximately 65,000 square feet of office space above the Philadelphia CBD. retail component. This space is predominately occupied by the Harrisburg is the Department of Health. capital of Pennsylvania and An executive of MIA visited the centre on Sunday 12th June 2005 at has a large Hispanic 12pm. We note that centre appears to have been recently refurbished community Average daily and is clean and tidy. The centre has good street visibility and access traffic count 11,992 vehicles and egress. There are currently a few office vacancies at the rear of the Population ‐ centre. 3 mile radius 96,000 Average New Holland Plaza is located on West Main Street, in the rural Household township of New Holland. The property is located nearby the Income US$42,723 Interstate 76 (the Pennsylvania Turnpike) which heads east to GLA 220,288 square feet Giant Food 60,401square feet Philadelphia. New Holland has a large Amish and Mennonite supermarket population. New Holland is home to New Holland Supply, one of the A.J. Wright 25,350 square foot larger agricultural equipment suppliers and is the largest employer in the area. New Holland Plaza New Holland, Pennsylvania New Holland Plaza is an open air centre and is anchored by an Location 71 miles west of the Amelia’s supermarket. The business is operated by Mennonites’ so Philadelphia CBD attracts the local demographic. Average daily traffic count 16,686 vehicles An executive of MIA visited the centre on Sunday 12th June 2005 at Population ‐ 3pm. We note that centre has good street visibility and access and 3 mile radius 13,000 approx egress. There is currently one office vacancy at the centre. Average Household Park Hills Plaza is located on the corner of Route 22 (Plank Road) and Income US$54,188 Orchard Avenue, in the township of Altoona, Pennsylvania. Route 22 GLA 65,878 square foot Amelia’s 22,896 square foot is a substantial retail strip considering Altoona’s outlying location. supermarket There are 77,000 residents in a 5 mile radius with an average household income of US$40,000. Park Hills Plaza Park Hills Plaza is a 279,000 square foot open air centre anchored by Altoona, Pennsylvania Weis Markets, Toys R’ Us, Durham’s Sporting Goods, Superpetz and Location 45 miles east of Pittsburg Staples office supplies. As part of the centre there is a 7 cinema theatre Average and Hooters and Dennys restaurants. The centre is located adjacent to daily traffic the regional Logan Valley Mall. count 26,000 vehicles Population ‐ An executive of MIA visited the property on Friday 17th June 2005 at 3 mile radius 37,000 approx 10am. The car park was found to be easily accessible and the centre Average has good visibility from the Interstate 99. Two smaller tenancies were Household Income US$42,442 found to be vacant. The centre is located opposite a Giant supermarket GLA 279,856 square feet and Big Kmart. We noted that the Weis Market appeared to have Weis Markets 52,000 square feet recently been renovated. Toys ‘R” Us 32,500 square feet Dunham’s Sporting Goods 30,120 square feet Superpetz 25,700 square feet Staples 22,900 square feet

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Gilbertsville Shopping Center Gilbertsville Shopping Center is located on East Philadelphia Gilbertsville, Pennsylvania Avenue, in the rural township of Gilbertsville. The township has Location 30 miles northwest 23,000 people residing in a three mile radius of the centre with an of the Philadelphia average household income of US$61,000. The property is located CBD Average daily nearby the Interstate 475 (the Pennsylvania Turnpike) which heads traffic count 17,538 vehicles east to Philadelphia. Gilbertsville Shopping Centre is an open air Population ‐ centre and anchored by a Weis supermarket. We are advised that 3 mile radius 23,000 approx Weis wish to expand their tenancy prior to the expiration of their lease Average Household in 2009 and we have been informed that there is expansion space on Income US$61,345 the current site. An executive of MIA visited the centre on Sunday 12th GLA 85,748 square feet June 2005 at 4.30pm. We note that centre has good street visibility and Weis access and egress. supermarket 40,944 square feet Christmas Tree Plaza is located on Marsh Hill Road between Route 1 (Boston Post Road) and Exit 41 of Interstate 95 which is approximately Christmas Tree Plaza half a mile away from the centre. Interstate 95 is the main highway Orange, Connecticut between Boston and New York. Orange is part of New Haven County, Location 10 miles west of New Haven CBD which is a highly dense suburban residential area with approximately Average daily 83,000 people living within a 3 mile radius of the centre with an traffic count 11,000 vehicles average income of US$69,000. Population ‐ 3 mile radius 83,000 approx Christmas Tree Plaza is an open air centre anchored by a Christmas Average Tree Shops chain store that has approximately 25 stores in Household Connecticut and Massachusetts. They sell a mixture of seasonal Income US$69,245 GLA 135,996 square feet orientated good as well as traditional home furnishings. Other tenants Christmas Tree include Harmon, a discount pharmaceutical chain and AC Moore, a Shops 55,000 square feet discount department store. The Christmas Tree Shops and Harmon AC MOore 22,080 square feet chains are owned by Bed Bath & Beyond. There is currently around

18,000 square feet of vacant space in the centre. However Big Shoe

Kloset is obligated to pay rent on the 15,727 square feet space they

have vacated until Oct 2012. Centro Watt has informed us that they

are currently in negotiations with Dress Barn for a tenancy of 8,000

square feet, Famous Footwear for a further 8,000 square feet and Blue

Sky for 2,500 square feet. This leaves 3,135 square feet vacant without Killingly Plaza rent guarantees from a previous tenant. Killingly, Connecticut An executive of MIA visited the centre on Monday 13th June at Location 66 miles from Hartford CBD & 15 12.30pm. The centre and car park was found to be extremely busy miles south of the with holiday makers heading to Long Island Sound for their summer Connecticut/Massac break. Even though the centre is not located on the main road Route 1 husetts border the national tenants in the centre appear to be trading successfully. Average daily traffic count 9,400 vehicles Killingly Plaza is located on North Main Street in the outer eastern Population ‐ township of Killingly, Connecticut. The township of Killingly is 3 mile radius 13,000 approx Average located on the border of Connecticut and Rhode Island and is near to Household Exit 93 on Interstate 395. The local economy is related to the casino Income US$48,009 industry located in Putnam and the medical industry in Worchester. GLA 75,376 square foot Stop & Shop 45,296 square foot Killingly Plaza is an ‘L’ shaped open air centre anchored by Stop & The township and surrounding area is Shop supermarket. The centre also services the surrounding township considerably less dense than the locations of most of the other centres in of Putnam, 5 miles north of the centre and Norwich, 20 miles south. the portfolio and has a very county The Stop & Shop have indicated to Centro Watt that they are looking community atmosphere to expand their tenancy before the end of their lease in June 2010. There is a 16 acre block of land adjacent to the site which is being investigated as possible expansion space for the Stop & Shop. If this site isn’t secured the supermarket may be forced to move across the road to a new development which is expected to be completed over the next two years. Level 3 North Tower, 333 Collins Street, Melbourne, Victoria, 3000 www.miaresearch.com Telephone: +61 3 9629 5777 Facsimile: +61 3 9629 5744 Page 17

An executive of MIA visited the centre on Monday 13th June 2005 at 10.15am. The centre was found to be well maintained with good

visibility from North Main Street and easy access to the car park.

XPect Discount Drugs is located on Boston Post Road in the suburb of Milford, Connecticut. The property is located 1/3 mile from the intersection of Interstate 95 and Milford Parkway, both major arterial roads and the intersection traffic count is approximately 43,000 cars per day. The Milford Centre is a single tenanted property anchored by XPect Discount Drugs. It is expected that Xpect will exercise their next XPect Discount Drugs option in 2009. The centre is located nearby a successful Walgreens Milford, Connecticut discount drug store. However XPect sell such an array of items Location 10 miles southwest (including a selection of fresh fruit/vegetables, meats, cosmetics and of New Haven CBD pharmacy prescriptions) that they are trading in a category of their Average daily traffic count 43,000 vehicles own. Population ‐ th 3 mile radius 50,000 approx An executive of MIA visited the centre on Monday 13 June 2005 at Average 3.10pm. The centre was quite busy and has good access from the main Household road. Income US$72,870 A&P Mamaroneck is located on the corner of Mamaroneck and GLA 25,200 square feet XPect Discount 25,200 square foot Jefferson Avenues in the township of Mamaroneck. Mamaroneck is Drugs located in Westchester County and is a highly dense suburban XPect Discount Drugs is a privately residential area of New York State. There are two sections of owned business with approximately 50 Mamaroneck, Downtown Mamaroneck has a greater mix of ethnic shops in Idaho and 7 in Connecticut. diversity and middle income households (US$50,000). However the demographics change closer to the centre with income tripling those A&P of the downtown area. The centre is located in an upper class area Mamaroneck, New York near the Long Island Sound foreshore. Location 25 miles north west of New York City A&P Mamaroneck is a 25,000 square foot free standing property Average daily which is 100% leased to the supermarket chain A&P. The A&P traffic count 25,800 vehicles supermarket chain has over 100 stores located in New Jersey and New Population ‐ 3 mile radius 84,000 approx York. The internal layout of the store is very similar to the typical Average Coles layout in Australia. We have been informed that A&P wish to Household expand their tenancy and management are investigating the purchase Income US$151,978 of an adjoining block of land. GLA 24,978 square feet A&P 24,978 square feet An executive of MIA visited the property on Tuesday 14th June at 9.30am. The property was found to be clean and tidy and has good access from both connecting roads. North Ridge Plaza New Rochelle, New York North Ridge Plaza is located on the corner of Quaker Ridge Road and Location 22 miles north west North Avenue in the township of New Rochelle, New York. New of New York City Rochelle is located in Westchester County and is an extremely dense Average daily suburban residential area of New York State. traffic count 8,920 vehicles Population ‐ North Ridge Plaza is an open air retail centre with an adjoining two 3 mile radius 182,000 approx Average storey office component. The retail component of the centre does not Household have a grocery anchor. Other tenants include Cosi’s (similar to Income US$107,774 Starbucks) and Harmon Cosmetics. The majority of the office space is GLA 42,131 comprising used a specialist medical office space and leased to cosmetic surgeons 10,000 square feet of open air retail centre and medical practioners. This location is particularly attractive to the and 30,000 square medical industry as the Soundview Hospital is located 5 minutes from feet adjoining 2 the centre. storey office component An executive of MIA visited the centre on Tuesday 14th June 2005 at There is currently one office suite 10.10am. vacant

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Highridge Plaza Highridge Plaza is located on Central Park Avenue in the town of Yonkers, New York Yonkers, New York. Central Park Avenue is a retail corridor and runs Location 18 miles north west north south through Westchester County. of New York City Average daily Highridge Plaza is an ‘L’ shaped open air centre anchored by a traffic count 40,000 vehicles Pathmark supermarket. The Pathmark store is competitive against Population ‐ other supermarket based centres on Central Park Avenue. We note 3 mile radius 198,000 approx Average that it is the valuers opinion that the 41,000 square feet store may need Household to expand prior to lease expiry to remain competitive against other Income US$84,140 larger competitor supermarkets. GLA 88,501 square feet Pathmark 41,767 square feet An executive of MIA visited to centre on Tuesday 14th June 2005 at supermarket 11.05am. The centre and in particular the Pathmark supermarket was There are currently two vacancies in the found to be very busy. centre Centro Watt have informed us that they are in discussions with UPS Port Washington is located on Port Washington Boulevard in the for one of the vacancies and they are in discussions with a Life Uniforms chain suburb of Post Washington, New York. The centre is located in for another tenancy. Nassau County which is on the north shore of Long Island a high density residential area. Port Washington is a 19,000 square foot free standing property which is 100% leased to Northshore Farms, a Mediterranean style market Port Washington which offers nice speciality produce for the upper class, ethnically Port Washington, New York diverse consumers. The centre is located nearby the open air retail Location 15 miles northeast of strip Americana Manhasse which sells high end fashion and is one of Manhattan Average daily the highest grossing retail strips on Long Island. traffic count 14,200 vehicles An executive of MIA visited the property in Tuesday 14th June 2005 at Population ‐ 12pm. It was noted during our inspection that the store had an 3 mile radius 67,000 approx Average internal renovation 12 months ago and is due for an external Household renovation this financial year. Income US$143,379 Springfield Supermarket is located on the Morris Turnpike in the GLA 19,650 square feet Northshore township of Springfield, New Jersey. The centre is located in Union Farms 19,650 square feet County, a high density residential area. The main source of employment for many residents is in the area of research & development for pharmaceutical companies. Springfield Supermarket Springfield is a free standing property which is 100% leased to a Springfield, New Jersey ShopRite supermarket. The store is currently undergoing an Location 15 miles west of expansion of 5,000 square feet which is expected to be completed by Jersey City end of the year. Average daily th traffic count 21,000 vehicles An executive of MIA visited the property in Tuesday 14 June 2005 at Population ‐ 2.30pm. It was noted during our inspection that the store was trading 3 mile radius 108,000 approx in the 5,000 square feet expansion and are operating a new deli in this Average section. The main competition to the centre is the Kings supermarket Household Income US$115,569 which is nearby. GLA 32,209 square feet Shop Rite 32,209 square feet Shop Rite has about 190 stores located in Connecticut, Delaware, New Jersey, New York and Pennsylvania.

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Rio Grande Plaza is located on Route 47 in the township of Rio Grande, New Jersey. Rio Grande forms part of Cap May County, which is the most southern point of New Jersey. Route 47 intersects with the Interstate 9, the Garden State Parkway, a major arterial freeway running north/south through New Jersey and the property is located approximately 200 metres from the intersection. The population of the surrounding area is not as dense as other properties in the portfolio given the decentralised location. Rio Grande Plaza is an open air centre anchored by JC Penney (a full Rio Grande Plaza line department store), Peebles (a discount department store) and Rio Grande, New Jersey Location 1 hour south of Sears Hardware. The centre is located nearby a ShopRite supermarket Atlantic City which acts as a Shadow anchor for the property. During our Average daily inspection of the property Sears Hardware were still in occupation of traffic count 18,000 vehicles 29,000 square feet but only paying rent for 22,037 square feet. Population ‐ 3 mile radius 9,000 approx However we have since been informed by Centro Watt that Petsmart Average will begin occupation of the space in February 2006 on the 22,037 Household square feet. As a result of the leasing deal additional space will be Income US$50,584 available for lease. GLA 138,347 square feet JC Penny 33,308 square feet An executive of MIA visited the property on Tuesday 14th June 2005 at Pebbles Dept 30,000 square feet 7pm. We found the property had easy access off Route 47 and is Store clearly visible when exiting Interstate 9. The property has adequate Sears Hardware 29,000 square feet car parking and there were quite a number of cars given the time of inspection. North Park Center is located on the intersection of Northside Drive North Park Center and Tom Hill Snr Boulevard in the township of Macon, Georgia. Macon, Atlanta Macon is located in Bib County which has over recent years Location The centre is located experienced expansion of the local manufacturing industry. This in nearby to the Interstate turn has lead to population growth. The property is located 75 and is approximately 5 miles approximately 20 miles north of the Warner Robins Air Force Base. northwest of Atlanta. North Park Centre is an open air centre built in 1988. The centre is Average daily traffic well established within the local community and is anchored by a count 22,560 vehicles Kmart and a Kroger supermarket. Kroger is due to expand their Population ‐ premises in the 2006/07 financial year and as part of their 3 mile radius 25,000 approx redevelopment are adding a Kroger branded fuel station to the site. Average Household An executive of MIA visited the centre on Wednesday 15th June 2005 Income US$69,880 at 12.30pm. There was found to be two vacancies within the centre. GLA 195,355 square feet Big Kmart 101,279 square feet However centre management advise that there are two current Kroger 49,319 square feet tenants of the centre willing to expand into one of the vacancies and supermarket discussions are underway with an outside tenant for the remaining space. Park Plaza is located on the very busy intersection of Douglas Park Plaza Boulevard and West Stewart’s Mill Boulevard in the suburb of Douglasville, Georgia Douglasville, Georgia. The township of Douglasville feeds off the Location 20 miles west of Atlanta Atlanta economy and is expected to have 10% population growth over Average daily the next five years. traffic count 30,867 vehicles Population ‐ Park Plaza is a 95,000 square foot open air centre which was built in 3 mile radius 30,000 approx 1987 and is shadow anchored by a 45,000 square foot Kroger Average supermarket. One of the larger tenants of the centre Mellow Household Mushroom is a pizza restaurant chain with approximately 60 stores Income US$63,936 GLA 95,790 square feet throughout Atlanta. Kroger 49,296 square feet

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An executive of MIA visited the centre on Wednesday 15th June 2005 at 3.10pm. The centre was found to be clean and clearly visible from both roads that service the property. We have been informed that

there is no significant capital expenditure for the property. There are currently two tenancies vacant in the centre. Holcomb Bridge Crossing is located on the very busy intersection of Holcomb Bridge Crossing Holcomb Road and Old Alabama Road in the suburb of Roswell, Roswell, Georgia within the Atlanta MSA. The property is located close to Interstate 40 Location 20 miles northeast of which heads north to Tennessee. The area surrounding the property is Atlanta CBD. mainly new office and retail developments. The centre is south of the Average daily suburb of Alpharetta, a new office/medical precinct, and is the fastest traffic count 47,160 vehicles Population ‐ growing area of Atlanta. The surrounding area is well established 3 mile radius 67,000 approx with a Super Wal‐Mart nearby the centre. We noted that there is a Average Home Depot under construction on Holcomb Woods Parkway which Household runs behind the centre. Income US$84,662 GLA 105,420 square feet Holcomb Bridge Crossing is an open air centre split into two sections. Golf & Tennis The main section is occupied by a 7,700 square foot Salon Studios and Pro Shop 63,070 square feet Champagne Champagne Tastes, a 22,000 square foot home furnishings store. The Tastes 20,700 square feet second section is occupied by 63,000 square foot Golf & Tennis Pro 4,322 square feet vacant which we have Shop Store which has been operating for 3 months. been informed is due to be spilt into two tenancies An executive of MIA visited the property on Thursday 16th June 2005 at 9.45am. The property was found to be slightly hidden from the main intersection by a Wachovia bank located in front of the property. Part of the main section of the centre is the subject of water damage and will require capital expenditure over the next 12 months. Evidence of rising damp was seen in the vacant tenancy. We have been advised by Centro that there has been appropriate capital expenditure allocation to resolve this problem. We were also informed that there are plans to undertake an external cosmetic renovation of the centre at the same time.

Magnolia Plaza Magnolia Plaza is located on Burkemont Avenue, in the township of Morgantown, North Carolina Morgantown, North Carolina. Morgantown is approximately 12 miles Location 20 miles west of west of Hickory, a retail hub of the area. The centre is located nearby Hickory the Interstate 40 which runs east west across North Carolina. Retirees Average are heavily represented in this area. daily traffic count 30,000 vehicles Magnolia Plaza is a 107,000 square foot open air centre anchored by Population ‐ Ingles supermarkets and has Wal‐Mart as a shadow anchor to the 3 mile radius 20,000 approx Average centre. Ingles supermarkets were founded in North Carolina and Household currently have approximately 200 stores in Alabama, Georgia, North Income US$48,774 and South Carolina, Virginia and Tennessee. We are aware that Wal GLA 104,539 square feet Mart is planning to build a Super Centre adjacent to Magnolia Plaza Ingles Supermarket 32,000 square feet which is expected to be advantageous to the centre. MIA did not inspect Magnolia Plaza.

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East Main Centre is located on East Main Street, Spartanburg, South Carolina. The centre is located on the south side of the Interstate 29 and nearby Interstate 85 which runs to Atlanta, Georgia. Spartanburg

is approximately 77 miles northeast of Charlotte and was the home of the first BMW plant in the United States. There are 69,000 people residing in a five mile radius with an average income of US$45,000 per annum. East Main Centre is a 56,000 square foot open air centre which is anchored by a 19,000 square foot Tractor Supply Co, who operates in 34 states across the United States. The centre is shadow anchored by a East Main Centre newly completed Lowe’s Homemaker Centre. Spartanburg, South Carolina Location 75 miles southwest of MIA did not inspect East Main Centre. Charlotte Average Culpeper Town Square is located on Route 29 in the rural township daily traffic of Culpeper, Virginia. The centre is located approximately 30 miles count 21,200 vehicles west of the retail hub of Fredericksburg. There are 18,000 people Population ‐ 3 mile radius 28,000 approx residing in a five mile radius with an average income of US$48,000 per Average annum. Household Income US$56,104 Culpeper Town Square is a 132,000 square foot open air centre which GLA 56,792 square feet is anchored by a 33,000 square foot Food Lion Supermarket, a 25,000 Tractor square foot Grand Piano & Furniture Co. and a 25,000 square foot free Supply Co 19,092 square feet standing pad occupied by Tractor Supply Co. The centre was recently re‐developed to incorporate the Food Lion Supermarket. Culpeper Town Square MIA did not inspect Culpeper Town Square. Culpeper, Virginia Location 75 miles southwest of Washington DC Average daily traffic count 23,000 vehicles Population ‐ 3 mile radius 12,000 approx Average Household Income US$43,556 GLA 132,881 square feet Food Lion 33,000 square feet Tractor Supply Co 25,607 square feet

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Centro MCS 36 – International No. 4

Risk Factors

The following is a list of general risk factors relating to an investment in Centro MCS 36 not covered in detail elsewhere in the report. The list is not meant to be exhaustive and does not take into account the individual circumstances of investors. General Economic Conditions: Fluctuations in economic conditions in the United States may affect the financial strength of various tenants occupying the properties owned by the Syndicate. This could ‘United States economy subject to cause a default or delay in the payment of rental income. This may local and external shocks’ have a negative impact on the value of units in the Syndicate and impact adversely on distributions to investors. The United States comprises a series of distinct local and regional economies that are subject to a large number of external influences.

Socio‐economic and Demographic factors: Changes to the social

structure or demographic base of the catchment areas of the properties

may have either a positive or negative impact on the future demand ‘Highly mobile United States for space in them. The United States population is highly mobile and population’ significant changes in local area demographics can take place within a

relatively short timeframe.

Regulatory Conditions: The attractiveness of an investment in the Syndicate may be affected by changes to Australian Government policy, particularly in relation to the financial services industry. Changes in taxation law, relevant sections of corporations’ law or any ‘US tax law could change to other statutory changes may affect distributions to investors. It is also detriment of Syndicate’ possible that future changes to United States taxation law may affect returns to investors in the Syndicate.

Accounting Standards: Further changes to accounting standards

within Australia may have an impact on the value of units in the

Syndicate. We note that the effect of the introduction of International

Accounting Standards in Australia in 2005 is forcing property trusts to

change their reporting standards to a significant degree.

Changes in Interest Rates: Changes in interest rates may impact on investor returns. There is no guarantee that interest rates negotiated in future upon the expiry of current hedging will be as low as those ‘US interest rates on upward currently negotiated. We note that interest rates in the United States trend’ are currently in an upward trend from historically low levels. Liquidity: At this time, it is not the intention of Centro to list the Syndicate on any exchange. Despite the relatively attractive redemption options put in place, there is no guarantee that investors ‘Investors should consider will be able to utilise them under certain market conditions, and Syndicate an illiquid investment’ therefore, as with any investment, there is no guarantee that investors will have their equity funds returned at any time in the future.

Unexpected Capital Expenditure: Many of the properties in the Syndicate portfolio are older style premises. There is the possibility that capital expenditure requirements in future years may exceed ‘Scope for unexpected Capex those currently assumed and budgeted. Considerable expenditure requirements’ may be required to retain or replace major tenants in some centres over the next few years.

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Centro MCS Manager Limited

Company Background

Centro MCS is a fast growing business within the wider Centro Properties Group, a stapled security listed on the Australian Stock Exchange. Under the management of Andrew Scott, Chief Executive Officer, Centro has experienced explosive growth in the past four years through organic growth as well as the purchase of MCS Property Limited, Australia’s largest property syndication business in July 2003, its participation in the break up of the AMP Retail Property Trust and its expansion into the United States. Total funds under management in the wider Centro Properties Group were approximately $9 billion as at 30 June 2005, of which ‘Substantial fund manager’ approximately $3.8 billion was in property syndicates. This places the company in the top tier of property funds management businesses in Australia and a significant business on a global scale in terms of property specific fund managers.

Key Executives

Centro MCS Manager Limited ‐ Australian based operations Centro’s organisational structure is focused on three areas of core competency being retailing, investment and legal/finance. Various executives are pulled together to form the best possible team when required for specific projects.

In relation to Centro MCS 36 the fund manager for this Syndicate will ‘Australian head office staff be David Omond. David works alongside Gerard Condon who both oversee funds management’ report to Tony Torney, General Manager ‐ Unlisted Funds Management who is a direct report to the CEO, Andrew Scott. We have known Tony for some years and know him to have a high level of commercial acumen having spent several years as Head of Property Acquisitions at MCS Property prior to its purchase by Centro. David Omond will liaise with Mark Wilson and George Demuth in the United States East Coast Office on property management matters. Mark is ultimately responsible for all aspects of the East Coast portfolio of Centro Watt. Mark in turn reports to Jim Maginn, the President and CEO of Watt Commercial who is based in the West Coast office and is also a member of the Centro Watt JV Management Committee. The other members of the Management Committee are Andrew Scott (Centro CEO), Graham Terry (Centro Chief Operating Officer) and Jim Leonetti (Watt Commercial Vice President and Chief Financial Officer).

We are advised that all tax related issues are signed off by Romano Nenna, Chief Financial Officer, while General Counsel, John Hutchison provides the ultimate sign off on all legal aspects of the syndicate.

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Centro Watt ‐ United States East Coast Operations

Mark Wilson is the Managing Director of Centro Watt East Coast and ‘US staff responsible for asset is based in Philadelphia. He has recently moved from Australia to the management activities’ United States to take up the position. Mark has 24 years of experience

in the retail and property industry and was formerly the National Property Manager of Centro Properties Group and currently holds a position on Centro’s Executive Committee.

George Demuth is the Chief Operating Officer of Centro Watt East

Coast operations and reports directly to Mark Wilson. George was

previously employed as Chief Operating Officer of Kramont for 5 ‘Considerable experience among years. Prior to this George held the position of Chief Operating Officer senior US based executives’ at Kranzco, a Philadelphia based mall REIT. George has also worked

at Lend Lease and Kravco – a Philadelphia based shopping mall REIT.

George has 15 years experience in the management of open air malls

and we are comfortable in his ability to meet his responsibilities at Centro Watt.

Tom Lorenzen is Vice President ‐ Investment Management of Centro Watt East Coast and is based in Philadelphia. Tom was formerly Centro’s National Investment Manager. Tom is responsible for investment management, accounting and asset management functions. Mike Mortimer is Vice President, Controller & Asset Manager of the Current Yield to Investors st East Coast operations and is based in Philadelphia. Mike was 1 year Current Yield Yield previously employed by Kramont for 6 years. He has 10 years

Centro MCS 2 13.00% 11.50% experience in property asset management. Mike is responsible for Centro MCS 3 11.50% 17.50% portfolio financial accounting including the day to day management Centro MCS 4 11.10% 17.60% Centro MCS 5 11.60% 14.00% of the accounting staff. Centro MCS 6 10.20% 13.30% Michael Moss is Vice President and Director of Leasing for the east Centro MCS 8 10.20% 11.20% Centro MCS 9 10.20% 9.50% coast operations and is based in Philadelphia. Mike was previously Centro MCS 10 9.75% 10.40% employed by Kramont for 3 years. He has 10 years experience in Centro MCS 11 9.75% 10.80% shopping centre industry. Mike is responsible for the 7 leasing Centro MCS 12 9.85% 10.00% managers within the East Coast office. MIA personally met with Centro MCS 14 9.30% 9.30% Centro MCS 15 9.20% 9.65% Michael and five leasing personnel while in the United States. Centro MCS 16 9.35% 10.30% Centro MCS 17 8.75% 9.00% Mitchell Brown is the Head of Marketing and is based in Philadelphia. Centro MCS 18 8.00% 8.00% Mitchell was previously employed by Kramont by 3 years. Prior to Centro MCS 19* 8.00% 8.40% this he was employed by the US based Prime Retail REIT for 11 years. Centro MCS 19# 8.00% 8.40% He has 15 years experience in marketing retail malls. Centro MCS 20 8.50% 8.65% Centro MCS 21 10.00% 10.80% Centro MCS 22 11.00% 14.80% Human Resource Management Centro MCS 23 10.00% 10.00% Centro MCS 24 10.50% 8.25% Centro MCS Manager Limited ‐ Australian based operations Centro MCS 25 9.25% 10.30% The location of all head office staff on one floor has specific Centro MCS 26 9.00% 9.30% Centro MCS 27 10.00% 8.65% application to the three colour coded team structure employed by Centro MCS 28 8.20% 8.25% Centro and enables issues to be dealt with quickly by the right group Centro MCS 32 8.50% 8.85% of executives. Centro’s total staff compliment is approximately 200 Centro MCS 33 8.00% 8.00% excluding more than 500 on‐site property managers and regional Centro MCS 34 7.70% 7.70% Centro MCS 35 8.50% 8.50% managers as well as a growing number of staff in the United States. * UT There has been some recent turnover of staff in marketing and funds # NZ/I management but there is no evidence that this has had any significant impact on Centro’s equity raising and funds management capability.

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Centro Watt ‐ United States East Coast Operations Centro Watt has offices on the west and east coasts of the United States. However the majority of human resources responsible for the management of the Syndicate will be based on the East Coast as outlined under Key Executives. In addition to the head office staff in Plymouth Meeting on the East Coast, Centro Watt East Coast also employees 8 leasing mangers and numerous property managers in the states of Georgia, Pennsylvania, New Jersey, New York and Rhode Island. Centro Watt have approximately 145 staff dedicated to the management of the properties located on the west and east coasts.

Net Asset Backing per $1 Asset Management Expertise Invested as at 30 June 2005 The combined asset management experience of the Australian based Year Current Estab NAB operations and the East Coast operations total approximately 350 Centro MCS 2 1994 $1.65 personnel. One of the key similarities between the organisational Centro MCS 3 1996 $2.94 structure of Centro and Kramont was the philosophy of in‐house asset Centro MCS 4 1996 $3.12 management. Both teams have extensive experience in their relative Centro MCS 5 1997 $2.33 Centro MCS 6 1997 $1.63 markets and we are comfortable that Mark Wilson, with the assistance Centro MCS 8 1998 $1.47 of George Demuth, will head up the asset management of the Centro MCS 9 1998 $1.13 portfolio in a manner that Australian investors have come to expect Centro MCS 10 1999 $1.34 with Centro. Centro MCS 11 2000 $1.54 Centro MCS 12 2000 $1.29 Property management located in Georgia (Cathy Booth), Pennsylvania Centro MCS 14 2001 $1.00 (Al Dorn and Art Muller), New Jersey(Al Dorn and Steven Declara) , Centro MCS 15 2001 $1.34 Centro MCS 16 2001 $1.12 New York (Steven Declara). We met with Al Dorn and Art Muller and Centro MCS 17 2001 $1.10 Cathy Booth and are comfortable with their abilities to manage the Centro MCS 18 2002 $1.00 properties in the portfolio. Centro MCS 19* 2002 $1.00 Centro MCS 19** 2002 $1.00 Centro MCS 20 2003 $1.00 The Leasing officers are located in Georgia (Louise Jennings), Centro MCS 21 1998 $1.70 Pennsylvania (Michael Moss, Bryan Finnegan and Suzanne Cadden‐ Centro MCS 22 1999 $1.92 Christian), New Jersey (Michael Walker) and New York (Michael Centro MCS 23# 1999 $0.56 Walker). The majority of the current leasing personal were previously Centro MCS 24 1998 $1.00 Centro MCS 25 2001 $1.47 employed by Kramont and are specialists in the localities that they are Centro MCS 26 2002 $1.23 responsible. They have strong relationships with the tenants of the Centro MCS 27 1999 $1.00 properties and the local economy and demographics of their specific Centro MCS 28 2003 $1.12 areas. We are comfortable that the leasing personal have the necessary Centro MCS 32 2003 $1.06 Centro MCS 33 2004 $1.00 skill set to manage the tenancy mix (and re‐mix in some cases) at the Centro MCS 34 2005 n/a properties in the portfolio. Centro MCS 35 2005 n/a * UT Interest Rate Management Experience ** NZ/I # Initial capital investment per security We are aware that Centro has had extensive experience in interest rate was $1.00. This has been reduced to 10c following a 90c return of capital as a management both in regard to assets in Australia and overseas. In result of the sale of Whitsundays recent times, we have noted its significant emphasis on this issue and Shopping Centre in February 2005 further note that it has shared interest rate risk with investors through its co‐investment policy, as well as a consequence of purchasing many of the property syndicate assets on its corporate balance sheet prior to offering them to investors. We are advised that the responsibility for interest rate management lies with Michael Zickert. We have been informed that Michael joined Centro in 1999 and has 20 years experience in banking and financial markets. Prior to Centro, Michael worked for Commonwealth Bank, Citibank, Westpac, Challenge Bank and Bank of Melbourne primarily in a financial risk management capacity. Michael is described as a derivatives specialist with extensive corporate finance experience and has a Masters of Applied Finance from Macquarie University. Level 3 North Tower, 333 Collins Street, Melbourne, Victoria, 3000 www.miaresearch.com Telephone: +61 3 9629 5777 Facsimile: +61 3 9629 5744 Page 26

Investment Performance Track Record We have recently been provided with extensive information regarding the investment performance track record of the various syndicates that make up the Centro MCS operation. Units in most of these ‘Centro has strong track record’ syndicates are held by the Fund and their underlying performance will determine its returns to investors. The tables accompanying this section speak for themselves and are testament to the past success of Centro MCS. Centro MCS is keen to emphasise their most recent performance statistics for the period ending 31 December 2004. Given the average total return across the ‘Initial performance from US property syndicate portfolio of 27% for the 2004 calendar year it is property has been positive’ difficult not be impressed by their performance even in a market which experienced a further tightening in capitalisation rates. This performance has been achieved without the impact of the merger and

acquisition activity which drove the listed property trust market to similar results in 2004. ‘Strongly performing fund We are aware that the 14 United States based centres in Centro MCS manager’ 32 – International No. 2 established in October 2003 has recently been revalued at a 11.5% gain over the purchase price and the NAB as at 30

June 2005 was $1.06.

Financial Position Centro Properties Group is a publicly listed entity on the Australian Stock Exchange. It is therefore subject to considerable disclosure conditions and as such its financial position is transparent and readily available. We note that for the financial year to June 2005 Centro’s full year profit was $253.4 million, an increase of 32.6%. Distribution per

security was up 10.0% and the company currently has a market capitalisation of over $4.2 billion. This indicates a strongly performing retail property investment and services organisation.

Regulatory Compliance Track Record We have recently met with Elizabeth Hourigan – Head of Compliance and queried her on Centro’s regulatory compliance track record. We ‘No significant compliance issues have been advised that there have been no significant issues in recent raised by manager’ years. We have been informed of a very substantial compliance regime, particularly in the area of investor feedback, all of which is logged on a central computer system.

We have searched the Australian Securities Investments Commission licensing database and note that Centro MCS Manger Limited holds its own Australian Financial Services Licence while CPT Manager Limited holds a separate licence pertaining to the management of the Centro Properties Group corporate business activities. Both licences

authorise the provision of general financial product advice, the ability to deal in a financial product and operate managed investment schemes in their relevant areas of operation.

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Managed Investment Assessments Managed Investment Assessments Pty Ltd, ABN 87 094 541 358, provides investors and their advisors with high quality assessments of property‐related managed investment schemes. We are an objective observer of the companies and products we examine, and have a strong basis, supported by thorough analysis, for any assessment made. We strive to adhere to the guide for research report providers titled ‘Managing Conflict of Interests’ released by the Australian Securities and Investments Commission on 3rd November 2004. Our coverage extends across the property funds management sector within Australia, and covers investments made by Australian domiciled funds in both local and overseas markets. Managed Investment Assessments holds AFS Licence No. 228911. The authority enables us to undertake assessments of managed investment schemes. Investment Ratings The following management and product ratings, and the weighting given to specific variables that comprise them, are consistently applied across property trusts of this type assessed by us.

Product Ratings Less than 50 Not recommended Score 50‐59 Approved Score 60‐69 Attractive Score 70‐79 Quality Score 80‐100 Superior

Management Ratings Less than 50 Not recommended Score 50‐59 Competent Score 60‐69 Good Score 70‐79 Strong Score 80‐100 Very Strong

Overall Ratings Less than 50 Not recommended Score 50‐59 Approved Score 60‐69 Attractive Score 70‐79 Quality Score 80‐100 Superior

Product Variable Weightings Management Variable Weightings Return: Income return on equity/ Risk Experience of key executives – funds adjusted Internal rate of return 24% management 15% Structure: Investment structure/ Loan to Experience of key executives – value ratio 13% property asset management 15% Risk: Tenant covenant / Lease expiry Adequacy of staff resources 5% profile / Geographic and sector allocation 17% Sector specific property management Tax effectiveness 12% expertise 12% NTA backing 5% Interest rate management experience Interest rate management 12% and track record 15% Investment performance track record 10% Fees and commissions 4% Financial position of Manager 10% Exit strategy and liquidity 13% Regulatory compliance procedures, reporting and track record 18%

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Information for Investors Basis of Assessment Manager Visit: The executives of Managed Investment Assessments have visited the offices of Centro MCS Manager Limited and have discussed with senior executives their ability to successfully manage the interests of investors in the Centro MCS 36 – International No. 4. Information Sources: Managed Investment Assessments has viewed or received copies of a number of documents which may include the most recently available Balance Sheet of the Manager, confirmation of NTA and cash flow compliance, recent annual reports, a summary of events that might have a material impact on investor returns, the Compliance Plan and Constitution, a record of any surveillance visits undertaken by ASIC, property valuations, building due diligence reports, accountants and legal reports, any relevant Prospectus, Product Disclosure Statement or Information Memorandum, the financial model pertaining to the product, documentation relating to the Investment Criteria, the Letter of Offer of Finance, any Option Deed, Underwriting Agreement or Custody Deed, the Managers AFS Licence and the internal organisational structure. Disclosure of Interests The Directors and employees of Managed Investment Assessments Pty Ltd do not hold securities in Centro Properties Group or Centro MCS 36 – International No. 4. Managed Investment Assessments Pty Ltd has received a fee from Centro MCS Manager Limited for the preparation of this Assessment. At the time of this report, neither Managed Investment Assessments Pty Ltd nor any associated entities have conducted any capital raising activity for the Centro MCS 36 – International No. 4. Managed Investment Assessments Pty Ltd may have provided advice to the Responsible Entity of this Trust and may do so in the future. Disclaimer This report is provided to investors as general securities advice on interests in managed investment schemes. This report should not be relied upon as a specific recommendation as Managed Investment Assessments Pty Ltd has no knowledge of the financial circumstances of any individual investor. It is strongly recommended that investors consult their financial advisor prior to making any investment. It is also recommended that investors review reports on this product from other independent research companies. Managed Investment Assessments Pty Ltd strongly advises investors to read all material provided by the promoter of this product including any prospectus or Product Disclosure Statement. Managed Investment Assessments Pty Ltd has no influence whatsoever on the past, present or future performance of this product or its manager, and does not accept any liability for financial loss incurred by investors who choose to invest in the product assessed in this report, or any other product. Date of report: September 2005 This report is valid for 6 months from the date of issue or the close of capital raising whichever is the sooner Level 3 North Tower, 333 Collins Street, Melbourne, Victoria, 3000 www.miaresearch.com Telephone: +61 3 9629 5777 Facsimile: +61 3 9629 5744 Page 29