MFS Living and Leisure Lists in New Zealand

June 22, 2007

MFS Living and Leisure Lists in New Zealand

- Listing on NZSX a logical commitment to the New Zealand market
- Potential favourable tax treatment for New Zealand-based investors

MFS Living and Leisure Group (ASX/NZX: MPY) has listed in New Zealand and has this morning commenced trading on the NZSX.

The overseas listing of ASX-listed MPY will provide New Zealand-based investors the opportunity to buy and sell securities through a New Zealand broker in New Zealand dollars.

Many New Zealand-based investors should also receive favourable tax treatment by virtue of MPY’s structure as a stapled instrument in Australia and the recently introduced Fair Dividend Rate (“FDR”) rules in New Zealand.

MPY chief executive, Marshall Vann, said the company had first expressed its intention to list in New Zealand under two months ago.

“As part of our takeover offer for Tourism Holdings, we made it clear we intended to list in New Zealand. We have done that quickly, and we are delighted to be listed here.”

Mr Vann said the overseas listing in New Zealand will allow local shareholders to more easily invest in a strong leisure sector business.

“In addition to our assets in Australia and Asia, we intend to have assets in New Zealand.”

Tax position

New Zealand-resident investors that are subject to the foreign investment fund rules should benefit from MPY’s stapled structure by virtue of the recently introduced FDR rules.

This is because, as a stapled entity, distributions are made from MFS Living and Leisure Trust to security holders as gross payments. The gross payment may be subject to some Australian withholding tax however this should be creditable against a New Zealand resident’s taxable income.

MPY has forecast a yield of 10 per cent for the 2007 financial year (An A7c distribution was paid in April 2007.) It has confirmed it expects that the yield for the 2008 financial year should be at least the equivalent.

Under the FDR rules, New Zealand resident shareholders will generally only be subject to New Zealand tax on an amount of income based on 5% of the market value of the investment. Should MPY achieve its 10% distribution target, therefore, the New Zealand tax treatment is favourable relative to the pre-FDR treatment of unit trusts.

For all other investors (namely individuals with less than $50,000 invested in offshore equities) distributions will be taxed when received.

Obviously investors must consider their own tax position in making decisions in regard to investing in MPY and we always recommend that specific financial and taxation advice be sought. However, it is important for New Zealand investors to appreciate the potential benefits of MPY as an investment.

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About MFS Living and Leisure Group
MFS Living and Leisure Group is a stapled group comprising MFS Living and Leisure Trust and MFS Living and Leisure Limited and is listed on the Australian and New Zealand stock exchanges (ASX/NZX:MPY).
MFS Living and Leisure operates in the leisure industry, through Australian Alpine Enterprises Holdings Pty Ltd (‘AAE’) and the Oceanis Group (‘Oceanis’).
MFS Living and Leisure is a worldwide diversified leisure business owner and operator committed to delivering naturally inspiring experiences. The group’s attractions comprise aquariums, ski fields and tree top walks.

Click to enlarge

MFS Living and Leisure operates its aquarium assets through its business, Oceanis. The Group’s assets include Melbourne Aquarium and UnderWater World (Mooloolaba) in Australia, Siam Ocean World in Bangkok Thailand, Busan Aquarium in Korea and Shanghai Ocean Aquarium in China.
MFS Living and Leisure’s ski resorts are operated through AAE and comprise Hotham and Falls Creek in Victoria, Australia. The resorts collectively account for approximately 26% of the Australian skier market (by number of skier days).
Recently, the Group acquired the rights to develop and operate tree-top walkways in Australia, through its purchase of the Otway Fly tree-top walk in Victoria. MFS Living and Leisure is currently developing a second tree-top walk at Illawarra in New South Wales.
Further diversifying the Group’s operations, MFS Living and Leisure recently finalised the acquisition of the Northbank Place site in Melbourne’s CBD. MFS Living and Leisure purchased this site through its transaction to acquire the Oceanis Group in 2006.
MFS Living and Leisure plans to develop the site into a three-tower, mixed use project with an expected end value of approximately A$200 million, in a joint venture with property developer Far East Consortium (a subsidiary of the Hong Kong-listed Far East Consortium). While property developments are not considered central to the business of MPY, the Group is always seeking opportunities to expand its core leisure offerings through such synergistic property projects in joint venture with experienced developers.

ENDS

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