Emira CEO, James Templeton, says the PI buy back transaction is expected to be earnings enhancing for the fund in the 2009 financial year and beyond.

Templeton says the PIs were acquired by Emira subsequent to the announcement of the interim distribution to 31 December 2008, but prior to the last day to register for the interim distribution, being 6 March 2009, and therefore the fund benefited from the distribution of 48.79 cents per PI. The fund used long-term debt facilities to finance the purchase and has decided to cancel the PIs.

Templeton believes the time was appropriate to exercise a PI buy back for a number of reasons: the unit prices of listed property companies, including Emira, have softened from their highs in 2007 and 2008; as a result, yields on certain listed property funds are cheap when compared to physical property; and the cost of long term debt swaps is currently relatively attractive, enabling earnings enhancing buybacks.

He says the fund has a mandate from its shareholders to buy back it’s PIs if the transaction can be shown to be beneficial to unit holders and will go into the market again to buy back PIs if the opportunity presents itself.