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Arena Office Fund

Arena Office Fund Entitlement Offer – now open

The Arena Office Fund Entitlement Offer (the Offer) presents existing Fund Unitholders and new investors the opportunity to subscribe for new units at an application price of 34.12 cents per new unit, through a pro-rata non-renounceable offer of 2.04 new units for every 10 units held on the record date (1 May 2012).

Existing Unitholders can apply for additional units above their entitlement which may become available, if there is a shortfall. The Offer is fully underwritten by Citrus Investment Services Pty Limited (the Underwriter) and will raise $17 million which will enable the Fund to reduce debt and should allow distributions to Unitholders to recommence.

Key benefits of this Offer for investors:

• Investing at a 35.6% discount to the Fund’s net asset value (NAV) as at 31 March 2012. The issue price is 34.12 cents per unit.
• Investment in a Fund with a diversified portfolio of office assets in Sydney, Melbourne and New Zealand valued at $318 million (as at 31 March 2012).
• Bonus units equal to 2% of the application moneys paid for by the underwriter through reduction of the underwriting fee. For example, if you are allotted 10,000 new units you will receive an additional 200 bonus units.
• Expected distribution of income to Unitholders on completion of the Offer.

Key risks of the Offer:

There are various risks in relation to the Offer, the Fund and its assets. These risks are described in detail in the PDS. Risks include:

• Dilution of Unitholder percentage ownership of the beneficial interest of the Fund and the value of Unitholder interest in the Fund;
• Borrowing risks including enforcement of a lender’s security over the Assets of the Fund if the Fund breaches loan covenants;
• Investors may not be able to sell or redeem their investment promptly or at all; and
• Fluctuation in the value of the Assets of the Fund and the amount of income they generate.
  

What is the Offer aiming to achieve?

The moneys raised will enable the Fund to:

• Fund capital expenditure and anticipated tenancy incentives;
• Reduce debt; and
• Access improved debt facility terms.

Key dates*

*These dates are indicative only and are subject to change. Arena has the right to close the Offer early or to extend or cancel the Offer without notice. If the date the Offer closes is varied, subsequent dates may also be varied accordingly. Investors are encouraged to submit their application form as soon as possible after the Offer opens.

Find out more

To download the Product Disclosure Statement and other key information, please click on the links below.

• Product Disclosure Statement
• Press Release

Investors should read the PDS in full and seek the advice of your financial adviser before making a decision to invest. For further information please contact the Arena Investor and Adviser Services team on 1800 008 494 or info@arenainvest.com.au

Financial advisers can order a copy of the Lonsec Research at marketing@arenainvest.com.au. By ordering a copy of the Lonsec Research you declare that you are a financial adviser or the agent of a financial adviser.

Fund Overview

The Arena Office Fund, formerly called the Commercial Office Fund, is an open-ended unlisted property fund established in 2005 with exposure to a range of office properties in Australia and New Zealand. The Fund is valued at approximately $318 million and owns and a geographically diverse portfolio of seven commercial office buildings with a good mix of tenants and a balanced lease expiry profile. The key strategy of the Fund over the past two years has been to reduce debt and recommence income distributions, whilst stabilising the Fund’s net tangible asset (NTA) value and the Offer is a vital part of this strategy.

Portfolio Overview

The Fund’s portfolio has exposure to office properties situated in the well situated commercial centres of Sydney and Melbourne as well as New Zealand. The portfolio has balanced lease expiry profile and includes a diverse range of blue-chip tenants on long term leases such as Victoria Police, Optus, Newcrest Mining, Roadshow Films, and QBE.

Legal Notice

This document has been prepared by Arena for general information only. It does not constitute personal financial product advice as it does not take into account your current or future financial circumstances. Arena is the responsible entity and issuer of units in the Arena Office Fund. Before making a decision regarding this product, you should consider the appropriateness of this information for your personal circumstances, carefully read the product disclosure statement dated 11 May 2012 and seek independent professional advice. This communication is only intended for and will be only distributed to persons resident in jurisdictions where such distribution or availability would not be contrary to local laws or regulations. This document is not a prospectus, product disclosure statement or other offering document and does not form part of any offer, invitation or recommendation or a solicitation of an offer in respect of the issue, purchase or sale of any units in the Arena Office Fund under Australian law or under any other law. Investors who wish to acquire units in the Arena Office Fund should consider the product disclosure statement in deciding whether to apply and complete the application form that accompanies the product disclosure statement. This document contains forward-looking statements which are based on matters and assumptions which are inherently uncertain, outside of Arena’s control and subject to change without notice. A variety of factors, many of which are beyond Arena’s control, affect the operation of the Arena Office Fund’s, performance, strategy and results and could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. All views and opinions are based on matters as they exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring, after the date hereof.

Warning Statement for New Zealand Investors

This information is required under the New Zealand Securities (Mutual Recognition of Securities Offerings – Australia) Regulations 2008.

1.  This offer to New Zealand investors is a regulated offer made under Australian and New Zealand law. In Australia, this is Chapter 7 of the Corporations Act 2001 and Regulations. In New Zealand, this is Part 5 of the Securities Act 1978 and the Securities (Mutual Recognition of Securities Offerings – Australia) Regulations 2008.
2. This offer and the content of the offer document are principally governed by Australian rather than New Zealand law. In the main, the Corporations Act 2001 and Regulations (Australia) set out how the offer must be made.
3. There are differences in how securities are regulated under Australian law. For example, the disclosure of fees for collective investment schemes is different under the Australian regime.
4. The rights, remedies, and compensation arrangements available to New Zealand investors in Australian securities may differ from the rights, remedies, and compensation arrangements for New Zealand securities.
5. Both the Australian and New Zealand securities regulators have enforcement responsibilities in relation to this offer. If you need to make a complaint about this offer, please contact the Financial Markets Authority, Wellington, New Zealand. The Australian and New Zealand regulators will work together to settle your complaint.
6. The taxation treatment of Australian securities is not the same as for New Zealand securities.
7. If you are uncertain about whether this investment is appropriate for you, you should seek the advice of an appropriately qualified financial adviser.
8. The offer may involve a currency exchange risk. The currency for the securities is not New Zealand dollars. The value of the securities will go up or down according to changes in the exchange rate between that currency and New Zealand dollars. These changes may be significant.
9. If you expect the securities to pay any amounts in a currency that is not New Zealand dollars, you may incur significant fees in having the funds credited to a bank account in New Zealand in New Zealand dollars.
10. The dispute resolution process described in this offer document is only available in Australia and is not available in New Zealand.

Investors should seek professional advice, having regard to their particular circumstances, and satisfy themselves as to the tax implications, both in Australia and New Zealand, of investing in the Fund.

For information on our Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements click here.

Arena Investment Management Limited ABN 23 077 235 879 AFSL No. 233190 has prepared this for general information only. It does not take into account your current or future financial circumstances. It is important for you to consider these matters before you make an investment decision on holding or acquiring these products. For further information please contact your financial planner or Arena Investor Services on 1800 008 494.