Tenant and Lease Profile

Tenant Profile

AUSTRALIAN LEISURE & HOSPITALITY GROUP

Initially a division of Fosters Group, ALH was floated on the ASX in November 2003. ALH was subsequently taken over by a Woolworths led consortium now known as ALH Group and is now 75% owned by Woolworths Ltd, Australia’s leading retailer. The balance is held by the Bruce Mathieson Group, a leading hotelier. Through ALH Group’s ownership of ALH, MGW, BMG and Taverner, it is Australia’s leading pub operator. Brands for the ALH Group include BWS and Dan Murphy’s.

Since ALH joined the Woolworths Group and acquired MGW, BMG and Taverner, they have demonstrated a successful integration of these companies into the business. For the twelve months ending 30 June 2009, the ALH Group (hotels division of Woolworths) reported sales of $1.110 billion and earnings (before interest and tax) of $218 million. For the six months ending 31 December 2009, reported sales have grown further to $591 million.

ALH now operate around 286 licensed venues and 476 retail liquor outlets across Australia. They are considered a market leader in offering a diverse array of hospitality experiences. The ALH portfolio includes iconic hotels and neighbourhood pubs, each tailored to its local market. They are also Australia's leading pub operator of electronic gaming machines, wagering, sports betting outlets and KENO.

Lease Profile

All of the seven pubs to be auctioned have the following lease profile:

•	Leased to Australian Leisure and Hospitality Group Limited (ALH).
•	Long established and highly successful venues.
•	25 year leases to November 2028 plus four, ten year options to November 20681.
•	Triple2 net leases, also net of land tax (except Queensland).
•	Annual CPI reviews (next due Nov 2010) plus a market reviews in 20181 and each 10 year period thereafter.

_{1 In the event that landlord ALE approves a final development proposal from ALH the rent is reviewed to market subject to the landlord being kept whole. 2 The outgoings the tenant is responsible for include municipal rates, water and sewerage rates, land tax (except in QLD), building and public liability insurance, compliance with relevant laws and regulations, repairs and maintenance together with replacement of items and components including capital and structural works}