South East Water

RNS Number:7650J
South East Water Limited
02 October 2006



                                South East Water


Hastings Diversified Utilities Fund (ASX: HDF) and the unlisted Utilities Trust
of Australia ("UTA") announce that they have acquired 100 percent of South East
Water ("SEW") for an implied enterprise value of #665.4 million.

HDF and UTA are managed by Hastings Funds Management Limited ("Hastings") which
is owned by Westpac Banking Corporation (ASX: WBC).

South East Water is adjacent to Mid Kent Water ("MKW") the water only company
acquired last year by HDF and UTA. The purchase of SEW will be subject to a
mandatory review by the UK Competition Commission which is expected to last
approximately six months. During the review process HDF and UTA will operate SEW
and MKW on a stand-alone basis and retain separate management teams and
governance arrangements.

The financing arrangements for SEW will be unaffected by this transaction. UTA
and HDF are committed to ensuring that SEW and MKW maintain the investment grade
credit ratings which are required of regulated water companies.

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For further information please contact:


Anthony Cardew / Nadja Vetter, Cardew Group                        020 7930 0777


About HDF and UTA

About UTA

Utilities Trust of Australia ("UTA") is an unlisted unit trust seeking to
consistently provide investors with benchmark-plus returns by taking influential
minority positions in infrastructure projects, privatisations and developments
in Australia and internationally.

Established in November 1994, UTA is an open-ended trust currently owned in the
main by a number of Australian superannuation funds.

The principles of UTA's investment strategy broadly include the following:

   * Assemble a portfolio of unlisted infrastructure assets with monopoly
    characteristics;

   * Influence management and asset performance through representation on
    investee company boards;

   * Seek return characteristics that have consistency in returns and low
    correlation with listed equities and property markets; and

   * Achieve diversification across risk and stage of maturity within the
    infrastructure asset class.

UTA assets include investments in: Melbourne Airport, Perth Airport, HOCHTIEF
AirPort Capital, Interlink Roads, Mid Kent Water, ElectraNet and Port of
Portland.


About HDF

Hastings has managed HDF since it listed on the ASX in December 2004. HDF was
established to invest in utility infrastructure assets with a moderate risk
profile and which offer predictable cash flows.

As at 28 September, HDF had a market capitalisation of over A$450,000,000 and
over 6,000 investors.

HDF targets investments such as:

   * Gas transmission and distribution assets

   * Electricity generation, transmission and distribution assets

   * Hydro and wind power generation assets

   * Regulated and unregulated assets

   * Australian and offshore assets (OECD).

The HDF portfolio includes: 100 percent ownership of Epic Energy in Australia,
and 50 percent ownership of Mid Kent Water in the UK.

Epic Energy consists primarily of three major natural gas transmission pipeline
systems. These pipelines are strategically well located, servicing major
participants in the Australian gas and energy sectors.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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