putting a cap on sp, page-4

Who knows whether a cap raising is on the cards for MOF or not - there has certainly been a lot of double-dipping cap raises in the sector to date.

To argue against one (possibly hopefully):

1) MCG own 14% of MOF and may be keen not to put up any more equity $$ to maintain percentage holding, thus try other ways to remain viable

2) Now that all loans up to FY11 are asset specific and non-recourse they may allow the 40 assets to operate on a 'stand alone' basis as is what is happening at Quintana and Berlin. ie breach a ratio and if the bank is too heavy handed or if there is not enough residual equity in the asset after new revalution - debt (e.g. Quintana) it can become the banks problem.

Just a little thought, however; For a REIT that has publicly stated it wants to focus on OZ, and has 54% of current assets in US, all I am seeing is Oz asset sales! Not helping achieve strategy but I guess a case of sell what you can to reduce gearing at the mo'...

Cheers
John