correct me, page-2

I was shocked at the Cap rate they sold at 9.1% is way way way above where the were valuing this portfolio at in recent years. 6.25% rings a bell as the average cap rate in the 2008 Annual Report. At 9.10% with a pre-sale debt ratio of around 50% on the US portfolio I would say virtually all the equity in the US portfolio has been wiped out . This shows in the announcement as they are only getting A$226m out of a sale of A$1.6b ...

The buyer of the portfolio can probably fund the deal at sub 5% cost of funds ... nice cashflow for them but for MCW a REAL hit to there earnings. Basically a disasterous foray into the US !! Keep to Aus and NZ !!.

See the shares giving up over half Friday's gains today.