Liquidity Update

22 March 2011

As we near the close of the first quarter of 2011, Balmain Trilogy continues to progress with its core strategy to complete, add value and realise the Funds Non Development Assets. As indicated in the February 2011 newsletter, challenging market conditions have impacted on asset realisations and the rate of sale.

This has had a direct effect on the Fund’s cash position; to enable Unitholders to clearly understand this we have provided the following sources and applications of cash (unaudited) that have occurred from 1 January 2011 to 15 March 2011.

1 JANUARY 2011 – 15 MARCH 2011
OPENING CASH BALANCE (1 JANUARY 2011) $7,806,933
INFLOWS $6,431,661.60
OUTFLOWS ($5,746,987)
CLOSING CASH BALANCE (15 MARCH 2011) $8,491,607.27
INFLOWS
CASH GENERATED FROM SALE OF ASSETS: $5,991,103.07
RENTAL INCOME EARNED FROM ASSETS: $42,525.96
INTEREST INCOME EARNED FROM ASSETS: $259,655.25
INTEREST INCOME FROM CASH: $104,695.69
OTHER INCOME: $33,681.63
TOTAL INFLOWS: $6,431,661.60
OUTFLOWS (EXCLUDING UNPRESENTED CHEQUES)
INTEREST EXPENSE (CBA): ($503,169)
REINVESTING IN MAINTAINING AND IMPROVING ASSETS: (SEE NOTE 1) ($3,707,314)
FUND EXPENSES: ($499,968)
MANAGEMENT FEES ($1,033,652)
TRANSACTION AND MISC FEES ($2,884)
TOTAL OUTFLOWS: ($5,746,987)
NOTE 1
ASSET NO. 1 ($58,717)
ASSET NO. 3 ($58,291)
ASSET NO. 4 ($25,666)
ASSET NO. 5 ($13,820)
ASSET NO. 6 ($250)
ASSET NO. 7 ($8,189)
ASSET NO. 8 ($1,015)
ASSET NO. 9 ($16,984)
ASSET NO. 10 ($2,200)
ASSET NO. 11 ($345)
ASSET NO. 12 ($24,587)
ASSET NO. 15 ($220)
ASSET NO. 16 ($34,592)
ASSET NO. 18 ($1,244,849)
ASSET NO. 19 ($6,041)
ASSET NO. 20 ($9,718)
ASSET NO. 23 ($47,733)
ASSET NO. 24 ($1,217,548)
ASSET NO. 26 ($45,746)
ASSET NO. 28 ($11,830)
ASSET NO. 29 ($26,125)
ASSET NO. 30 ($250,000)
ASSET NO. 31 ($26,459)
ASSET NO. 33 ($81,367)
ASSET NO. 35 ($1,898)
ASSET NO. 36 ($25,876)
ASSET NO. 37 ($285,691)
ASSET NO. 38 ($71,267)
ASSET NO. 39 ($110,290)
GRAND TOTAL ($3,707,314)

The inflows from asset sales have been below our quarter projections, however we still remain confident that asset realisations moving forward in the next quarter will be aligned to revised projections. As we have detailed previously, it is a commitment not to jeopardise the total return to Unitholders by undertaking a fire sale to generate cash inflow but to ensure assets are realised at their highest possible value.