eKourier Oct 2010

KSS Acquires Moore Park Centre from Mariner Property Trust

I am pleased to announce that KSS has successfully acquired the Moore Park storage centre we manage. Moore Park was owned by a syndicate of 400 small retail investors in a Managed Fund – not a property we owned. The fund was managed by Mariner Corporation. Our role has simply been the Asset Manager handling the day-to-day operations. The fund had reached its mandated expiry horizon in 2010. Investors were promised their capital be returned and the bank loan facility needed to be repaid. This lead to the marketing of it for sale. Earlier in 2010, the property was advertised for sale in a public campaign. After a long drawn-out negotiation KSS and Mariner finally agreed terms and exchanged contracts on September 21st. Moore Park is without doubt an iconic flagship location. It enjoys exposure to over 100,000 cars per day. Part of its primary catchment is the affluent Eastern Suburbs of Sydney. K ennards Self Storage has recently acquired a 2.2 Ha property at 241 Shellharbour Rd Warrawong, (NSW), just south of the Wollongong CBD. The Warrawong property will be developed into another typical Kennards Self Storage centre. Kennards Self Storage has already obtained planning approval for its other Wollongong property in North Wollongong in 2008, but this project was shelved in the wake of the G.F.C. uncertainty. The 2 locations when developed will provide Kennards Self Storage with commanding presence in the

Upon acquisition, KSS will undertake a $500,000 upgrade of the asset. An unfortunate reflection of the syndicate ownership is that it has not provided adequate investment and upkeep due to their priority for cash returns. We will provide some significant catch-up in this area. Quick Facts of KSS Moore Park No of spaces : 1287 Occupancy (August 31st) : 80% Revenue 2009-10 : $3,546,749

Team : Marinus Blom - Centre Manager, Arthur Figueiredo –

Customer Feedback “I had outstanding customer service. I don’t think Kennards Wetherill Park could do any better!” “Everything was above excellent at Campbelltown1 and the service by Marie and Mark was exceptional. Thank you for having me!” “Thank you Kennards Camperdown, our experience was all positive. Good clean facilities and friendly and efficient staff in the front office, and good online contact keeping your customers up-to-date. Congratulations.” “Being open 24 hours was great. I was impressed with how quickly my refund was sent out. I received it the following day. Thanks West End.” Assistant Manager, Helen Tancred – Assistant Manager and Robyn Jaques – Assistant Manager. We look forward to seeing Moore Park grow and improve with more attention, care and investment. Our ownership will ensure it truly represents the flagship standing it deserves in our portfolio. Sam Kennard

KSS Acquires New Development Site in Warrawong Wollongong market.

The Warrawong property was acquired after an auction held by Receivers, Korda Mentha, where it did not sell. The purchase price was $2.2 million representing a rate of $100/m² of land. Kennards Self Storage will proceed immediately to lodge an application with Wollongong City Council for development of the property. The strong representation of bulky goods retailers like Harvey Norman, Snooze and BBQ’s Galore suggests local consumers already have strong alignment to our potential customers. More details and progress reports will be provided as the project proceeds.

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Kennards Kourier October 2010