MacarthurCook Investment Managers (Asia) Limited (the Manager ), the manager of MacarthurCook Industrial REIT ( MI-REIT ) pleased to announce that MI-REIT has been assigned a first-time corporate rating of Baa3 with a stable rating outlook by Moody s Investors Service ( Moody s ).

Chris Calvert, Chief Executive Officer of the Manager, said, We are very pleased with Moody s corporate rating for MI-REIT, which is a positive reflection of MI-REIT s strategically located properties, quality tenant base, 100% occupancy rate long average lease expiry profile of 6.7 years. The rating is a testament MacarthurCook s proactive investment management style, disciplined property acquisition process and strong capital and risk management strategy.

With the credit rating, MI-REIT has increased gearing capability, with available capacity of approximately S$193 million to fund acquisitions. The higher leverage limit increases our operational flexibility and allows us to move quickly to acquire assets in line with our investment policy, added Mr Calvert.

Under the Property Fund Guidelines issued by the Monetary Authority of Singapore, as amended in October 2005, a REIT may increase its aggregate leverage maximum of 60% of the value of its deposited property, provided it obtains discloses to the public a credit rating from one of the major rating agencies, including Moody’s.

To maintain the appropriate risk profile of MI-REIT, the Manager expects to maintain a long-term target gearing ratio of between 40%-45%.

Mr Calvert continued, On occasion however, we may increase the leverage ratio above 45% in order to secure strategic industrial properties throughout Asia, which will enhance our capital growth and asset quality. We view debt in the current environment as an efficient mechanism to enable us to attain our target of growing MI-REIT by at least S$500 million in new acquisitions per annum.

The Manager has also successfully negotiated with its bank lending syndicate, which comprised of the National Australia Bank Limited and the Commonwealth Bank of Australia Limited, to increase its facility from S$128.8 million to S$220.8 million, which reflects MI-REIT s increased gearing capability.

In a separate press release issued by Moody s, the rating agency acknowledged that MI-REIT s properties are well located, with seasoned operating histories and stable and high occupancy rates. The agency also stated that it expects stable cash flow generation from the portfolio, supported by committed rental revenues, favourable industrial market conditions, low level of development risk exposure and ongoing financial discipline by the trusts management in pursuit of growth.