Ann: 2011 Results Presentation , page-5

I have been having a read through the accounts.

It certainly looks on the surface that AEZ is a dead in the water. However, I am putting a small wager on AEZ engineering an decent outcome (although not in relative terms). It would certainly be in APD's interests to not let some of their reputation and revenues go down the gurgler. Consequently, I am also interested to see what happens with APD's unlisted Poland Fund.

I am speculating that AEZ may try to re-structure the fund, if conditions permit it, sometime in the future.

On the one hand, AEZ is just liquidating its porfolio - selling it for whatever opportunistic price is offered (I understand that the Spanish Portfolio is non-recourse). For example, why would AEZ be looking to sell La Vega for Eur1.9m when the Net Operating Income from the property was Eur1m, if they did not just want to get it off the books?

On the other hand, some of AEZ's portfolio is performing reasonably. For, example they wrote Dortmund down (part of the Roller Portfolio) by Eur7.1m to Eur2m last year and are now valuing it at the offer price of Eur10.3mil. Also, the Champion Portfolio, due to its tenent and rental agreement, has also seen an increase in value, according to the report on APD's website.

Lastly, AEZ still accounts for the Champion Portfolio, which is not impacted by the 'Omnibus Deed', and Germany as Continuing Operations. Whereas, they have listed Italy, Austria, Spain and City Gate as Disposal Groups or Discontinued Operations. Consequently, AEZ still carry Champion and Roller at independent valuations assuming normal marketing period

This all may just be in accordance with the asset sale programme as set out by RBS. However, if anyone has any other opinions, please tell because I might learn something.

ididwork.