Performance History

Centro MCS – Solid Track Record

Centro MCS creates direct retail investments which seek to provide stable long term returns, with the aim of assisting investors build financial wealth. We are proud of our history of strong returns for investors. For the 2007 financial year Centro MCS Syndicates delivered a Total Annual Return of 26.3%, comprising income and capital growth (based on an equal investment in each Syndicate held for more than 12 months). Over the last three years the Total Annual Return was 23.7% p.a. (Investors should note that past performance is not an indication of future performance).

2007 Financial Year Saw Retail Property Continue To Outdeliver

Significant highlights for the 2007 financial year were as follows:

Delivery of 2007 Syndicate Forecast Distributions – All Centro MCS Investors received distributions in line with forecasts;

Valuation Growth Across the Syndicate Portfolio – 12.0% average valuation growth reflecting the quality of the assets within the portfolio;

Continued Growth in Provisional Net Asset Backing (‘NAB’) – 18.4% weighted average Provisional NAB growth from $1.58 to $1.82;

Average Total Annual Return Exceeds Expectations – 26.3% average Total Annual Return (based on an asset weighted investment in each Syndicate held for more than 12 months), and a 23.7% p.a. three year return;

The Successful Launch of New Syndicates – Centro MCS 38 was launched offering investors the opportunity to invest in United States (‘US’) retail property. This new offer received strong demand from investors, reflecting the quality of the portfolios, increasing demand for retail property and continuing investor appetite for attractive stable tax advantaged income;

Syndicate Rollovers – Centro MCS 25 rolled for a further term with significant Investor support. A range of Constitutional changes were also embraced by Investors, enabling Centro MCS to manage these Syndicates more effectively and to optimise Investor returns. Additionally a further four Syndicates are scheduled for rollover in the first half of the 2008 Financial Year these being Centro MCS 4, Centro MCS 14, Centro MCS 16 and Centro MCS 30;

Rollout of Value Adding Development Pipeline – $157.2m of developments were completed with a further $173.7m underway or planned for FY08;
Active Capital Management - Centro MCS actively manages and reviews the performance of each of the Syndicates during the year. As a part of this review, the management team identified a number of opportunities to enhance the performance of its Syndicate Portfolio. These include the release of Commercial Mortgage Back Securities which will provide a source of cheap funding for a number of Syndicates. Additionally the introduction of the Centro Syndicate Investment Fund will provide Syndicates with an additional investment opportunity to improve both investors' distributions and diversification.

In 2008 Centro MCS will Continue to Focus on:

Continuing to Grow Investors’ Total Returns – Optimise returns through proactive centre management and leasing with an emphasis on rental growth and value adding development opportunities;
Exciting Syndicate Investment Opportunities – Centro MCS 38, a A$1 billion portfolio of 20 quality retail properties located across 13 US states was launched in September 2006. Centro also reached agreement to acquire the Heritage Property Investment Trust (which holds 157 shopping centres in the US worth A$4.3 billion) which was completed in October 2007. This acquisition will provide Investors with further opportunities to invest in diversified international Syndicates in the near future.