concrete actions needed, page-15

Jadel

Sorry I have been off doing kids things.

You would not rush into any form of listing in the present market.

For fund such as PIF to work you need continued new inflows of funds as you are funding developments.

Developments by their nature of construction drawdowns need access to more and more funds.

This come and go nature of your money makes funding development unless you have enourmous access to funds almost impossible. This is why generally only banks should be in this business.

The minute the merry go round of new inflows stopped this fund and the developments it was funding were in serious do do.

Now the options are available for the fund and its investments are:
1) a work out of what investments it has and a wind up of fund. This will achieve a return of x cents in the dollar.

Bank gets paid out and the capital and interest can be returned to PIF investors over time.

Isuues are either the projects are refinanced or potentially security has to be sold in an uncomplete form which could be bad for PIF and almost certainly will be for OCV through exposure to NZ.

You cannot put new money into fund as it is under water.

2) The alternative which was the gist of the proposal I was aware of was that a new big brother manager would commit to put a significant additional amount of money into effectively a new fund.

PIF merged into this but at the recognised value of each unit at this point.

Benefits would be that the fund is backed by group who can get developments finished and also underwrite ongoing return to unit holders.

Upon the markets calming down and given fund is now a mix of old assets now under control and new quality assets that big brother additional funding can acquire, backed and managed by major institution then it becomes something that can be listed.

Investors are now stuck in something that they have no control over. They should be told the truth of what they can expect back and believe me these people know close to what the number is.

Then the options put to investors about how they can protect and maximise what is left.

The group I know of are aware of the mess and the enormity of the problems required to sort it out. They are prepared to put their money up to protect and make sure what is left is protected.

THis group would not list something that they would not support and protect their initial investment.