The ratings on Australian Prime Property Fund Retail (APPF Retail) reflect our opinion of the fund's conservative financial policies, strong liquidity, and high-quality and well-diversified Australian shopping-center portfolio. These strengths offset the risks associated with the fund's ongoing capital-expenditure requirements for development projects and exposure to cyclical discretionary spending. APPF Retail is an unlisted wholesale fund managed by Lend Lease Real Estate Investment Ltd. At Sept. 30, 2009, the fund had interests in a portfolio of 12 shopping-center assets across Australia valued at A$3.0 billion. We believe APPF Retail's high-quality shopping-center portfolio is well positioned despite a challenging retail environment. The centers benefit from dominant positions in their trade areas and solid occupancy levels (99.4% at Sept. 30, 2009). The
