The ratings on Australian Prime Property Fund Retail (APPF Retail), an unlisted Australian-based wholesale property fund, reflect our view of the fund's very conservative gearing policy, strong liquidity, and high-quality and well-diversified portfolio of shopping-center assets. These strengths mitigate the risks associated with the fund's ongoing capital-expenditure requirements for center expansions and development, and exposure to cyclical consumer and tenant demand. Lend Lease Real Estate Investments Ltd. is the trustee responsible for the management of APPF Retail and leverages the integrated business model of the broader Lend Lease Group (BBB-/Stable/A-3). At Sept. 30, 2010, APPF Retail had interests in a portfolio of 15 shopping-center assets across Australia, valued at A$3.6 billion. In December 2009, a Lend Lease-led consortium, which included
