Continious disclosure notice Chevron Renaissance Property Trust

31 May 2010

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Orchard Funds Limited (OFL) announced today that the Chevron Renaissance Property Trust (Trust) entitlement offer (Offer) described in the product disclosure statement issued by Orchard Capital Investments Limited (Orchard) on 5 March 2010 (PDS) closed at 5pm today. The minimum subscription was not reached and accordingly the Offer will not proceed.

While the Offer was well received, it did not receive sufficient support to reach the minimum subscription amount of $12 million to enable the Offer to proceed. Applications were received from approximately 20% of unitholders of the Trust. The Trust’s largest unitholder, the Orchard Diversified Property Fund (which owns 49.95% of the units in the Trust) was prevented from participating in the entitlement offer due to its financing arrangements with BOS International (Australia) Limited.

Commenting on the Offer, Orchard Chief Executive Officer David Hinde said, “Orchard believed that the investment opportunity under the Chevron Offer was compelling, and is disappointed that the Offer cannot proceed. A number of factors have contributed, including the inability of the Orchard Diversified Property Fund to take up its entitlement, and uncertainty among advisers and investors about the future of Orchard which is currently investigating options for recapitalisation.”

Orchard will now draw down on the Qualitas Facility described on page 44 of the PDS in order that the Trust can repay $10 million to the National Australia Bank. Orchard expects the Trust to be able to hold the Property for the term of the Trust, although it is unlikely that distributions will be paid due to the cash requirements to service the Trust’s debt.

Please contact Orchard Investor and Adviser Services on 1800 008 494 if you have any questions.

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