Ann: Earnings Upgrade and Proposed Transactions, page-8

TGP will have significant fee revenue via the ownership in PMG (which they are acquiring from TOT - for around $22M NZ I think).
Add to that the $5m for the mgmt rights of the Irongate TAP (third party funds management). And they might have a reasonable base. Something like $1.3 Bn of AUM (I am assuming $1.0Bn for PMG as it will include the new NZ from the Irongate transaction).

My estimates on the PMG revenue would be around $6M pa mgmt fee, could easily be another $4M from acquistions, and transactions. Collectively $10M of revenue (1% of FUM). Plus performance fees sporadically. a 50% EBIT margin for a business like that would be achievable (still provide a headcount of ~20 staff + occupancy).

The TGP of FY23, could have a stready mgmt income from TOT/IAP's property, plus ownership of PMG. Add to this trading profits (I would assume 1 deal per annum). I am happy to hold.

At Stockton, agree with your comment on scale. Though TOT were able to do a merger with URB a few years back, might look to do a similar thing again with another LIC/REIT trading at a discount. Cheapest way to do a capital raise.

Turning to Killa's earlier post. On the TOT vs. TGP debate, IMO - mgmt fee revenue is more exicitng that being a rent collector (REIT).
Consider PMG, if 360's 50% stake in PMG delivers $5M of revenue. and $2.2M EBIT, delivering a 10% yield, that can easily scale without additional capital (PMG has grown FUM streadily since 360s involvement). This is double what TOT can hope for as a pure play REIT.
And REITs are far from trouble free with lease expirings, interest rate risks, valuation compression, office vacancy in WFM.

If TOT wants to be a REIT - then fine.. IMO office valuations are looking very full across Aus.... and the price of the acquistions (in the option with CHC) is in line with the inflated $1.90 takeover. I.e. a premium to book value. Hence why I consider TOT to have achieved a Clayton's Profit on the deal.

I am not ruling out the possibillity of Centuria OR Growpoint etc lobbying a bid for IAP. According to the Australian (I cant share as it's behind a paywall) both took a look at Irongate.