Lead Manager

BABCOCK & BROWN PROSPECTUS
19. PROPERTY AND EQUIPMENT
Furniture and Equipment
2003
$000
At Cost 28,502
Accumulated depreciation (21,177)
Net 7,325
Leasehold Improvements
At Cost 18,679
Accumulated depreciation (7,296)
Net 11,383
Computer Equipment and Software
At Cost 8,669
Accumulated depreciation (7,838)
Net 831
Total Property and Equipment 19,539
20.ASSETS UNDER DEVELOPMENT
2003
$000
Anaerobic digester facility 15,049
Real estate projects 42,837
Wind farm projects 6,342
Other 1,337
Total assets under development (all non-current) 65,565
Anaerobic Digester Facility
Babcock & Brown, through a subsidiary, is constructing an anaerobic digester facility (the Facility) on a leased site
in Australia.The Facility has been designed to process waste products and produce fertiliser and methane gas to
fuel a co-generation plant that is being built as part of the development. Construction of the Facility started in
December 2001 and was expected to be substantially completed in July 2003 with final handover from the
contractor in October 2003.The Facility did not meet stipulated performance standards and it is expected that
additional funds will be needed to make the Facility operational. It is unclear how much of the additional
construction costs will be borne by the contractor.
Subsequent to 31 December 2003, Babcock & Brown arranged for improvements costing approximately
$5 million that it believes will bring the plant’s performance up to satisfactory standards.
Real Estate Projects
Babcock & Brown, through a subsidiary, is developing residential real estate property in Australia.
Wind Farm Projects
Babcock & Brown, through a subsidiary, is constructing wind farms on leased property in Australia. Construction
of the wind farms started in June 2003 and is expected to be substantially completed in June 2005.
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