MIRVAC INDUSTRIAL TRUST 
By 21 November 2013
MIRVAC INDUSTRIAL TRUST TERMS AGREED FOR SALE OF W165 N5830 RIDGEWOOD DRIVE, MENOMONEE FALLS
Mirvac Funds Management Limited, as responsible entity for Mirvac Industrial Trust (the "Trust") [ASX code: MIX], announced today that it has agreed to sell a Trust asset at W165 N5830 Ridgewood Drive, Menomonee Falls to an owner occupier for approximately US$15.20 million1, before costs.
The proceeds from the sale after costs are estimated to be approximately US$14.32 million and are expected to be applied as follows:
• US$9.90 million applied to the ING loan to extinguish the allocated loan balance for W165
N5830 Ridgewood Drive, Menomonee Falls;
• US$1.98 million to be used as an additional loan repayment for the CJF3 loan pool (which houses the Trust's two Hammond assets) in anticipation of a future sale; and
• US$1.02 million estimated yield maintenance charges which are in line with the loan terms with
ING.
Net proceeds (after debt and transaction costs) of approximately US$1.42 million are expected to be released to the Trust at settlement.
The 300,120 square foot asset was vacated in May 2013 as the space was surplus to the needs of the tenant, Innoware Paper. The space vacated by Innoware Paper has been marketed for sub-lease during this time without success.
As a consequence of the sale the lease to Innoware Paper will be terminated on settlement for an amount of approximately US$1.98 million to be paid to the Trust. The proceeds from the lease termination will be held by ING, the Trust's lender, and can be applied towards certain capital
1 The sale price of US$15.20 million plus the lease buy out proceeds from the Innoware lease of US$1.98 million provides at total proceeds from the sale of US$17.18 million versus a book value of US$15.10 million at 30 June 2013.
expenditure requirements and/or sale costs associated with the anticipated sale of the Trust's non-core
Hammond assets, including debt prepayment.
Settlement of W165 N5830 Ridgewood Drive, Menomonee Falls, is expected to occur on or around 4
December 2013.
Upon completion of the sale, the Trust's Net Tangible Assets remains at 21 cents per unit2 and gearing reduces to 61.12 per cent (from 63.0 per cent at 30 June 2013). As a consequence of the sale of this asset, the Trust's operating earnings guidance range for FY14 will reduce to 2.00 - 2.20 cents per unit
from 2.20 - 2.40 cents as announced to the market on 23 August 2013. The Trust's weighted average lease expiry increases to 4.4 years from 4.3 years at 30 June 2013 as a result of sale.
Nicholas Blake, Trust Manager said, "The sale of the Menomonee Falls asset is an opportunistic transaction that defrays a significant future lease expiry in a relatively weak sub-market, as evidenced by the lack of interest generated from the sub-lease campaign. The sale price of US$15.20 million when viewed in combination with the lease buy out proceeds of US$1.98 million from the Innoware
Paper lease, is a premium of approximately 14 per cent over the 30 June 2013 book value of US$15.10 million. Importantly, as part of the negotiations with ING, the allocated loan amounts for the CJF3 debt pool will reduce to an amount equivalent to a 73 per cent loan to value ratio, down from 98 per cent previously, in anticipation of their future sale."
The sales and marketing campaign put in place in September 2013 for the divestment of the four non- core assets is progressing with interest received from a number of parties.
Distributions from the sale of the Menomonee Falls asset will be assessed in the second half of FY14 allowing for further progress to be made on the sale of the non-core assets.
Nicholas Blake Norelle Ray
Trust Manager, Mirvac Industrial Trust Senior Manager, Shareholder Services
T: +61 2 9080 8000 T: +61 2 9080 8651
2 Based on 30 June 2013 foreign exchange rate of $0.9275.
3 The identified non-core assets are 308 South Division , Harvard, 900 East 103rd Street, Chicago, and 4507 and 4531 Columbia Avenue, Hammond.
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