jv - background please., page-2

Hi Asteroider - I havent fully digested the recent reports...

As I understand the JV - it essentially had two partners - GPT putting down the equity - about $2bn - and BNB who leveraged it up to around 6-7bn.

The 5bn odd borrowed is non recourse to GPT - meaning, as I understand it they can walk away, lose OUR 2bn and have neither any obligations to repay the outstanding 5bn or recover any of our 2bn equity.

I don't know the specific covenant details - Im expecting they are all in breach with regards to the JV - as the timing for any expected returns from the JV would be seriously impacted byt hte present world situation.

I believe that there is an exit for GPT - one where they may have have *some* options of recovering our $2bn - although how it works is not clear to me.

In all of my calculations, I have assumed $0 asset value on the JV.
The 2bn of equity I assume is lost. As the debt (some 5bn) is not recourse, I do not factor it in to GPTs headline debt or gearing calculations.

Hope this helps a little.