Strong market position Robust operating earnings, underpinned by high-quality and well-located retail assets Conservative financial policy Ongoing capital-expenditure requirements for development projects Exposure to cyclical discretionary consumer spending The ratings on Australian Prime Property Fund Retail (APPF Retail) reflect the fund's strong market position, high-quality retail assets, high degree of operating stability, and conservative financial policy. These strengths more than offset the risks associated with the fund's ongoing capital-expenditure requirements for development projects and exposure to cyclical discretionary spending. APPF Retail is a wholesale-unlisted fund managed by Lend Lease Real Estate Investment Ltd. At June 30, 2008, the fund had interests in a portfolio of 12 shopping-center assets across Australia valued at A$3.1 billion. APPF Retail's high-quality shopping-center portfolio positions
