Ann: Conditional Agreement, page-6

sorry, IIUC, I think some may be missing my point. Properties with longish leases in place to good credit credit tenants are worth more than properties with short leases (or no committed tenancies). By entering into the lease with Scale consolidated - NCK probably increased the value of the property! Ie, Without that committed lease any valuer might have included some allowance for additional costs in the value of the lease (eg, vacancy risk, possible marketing costs if tenant left, contributions to new tenant fit-out or lease incentives depending on the market/property, perhaps a higher discount rate if property was seen as having high vacancy risk or risk of having to reduce rents). Including those costs would reduce the value of the property.

So the lease to NCK probably increased the value of the property we are now going to buy. It looks like a dumb decision to me viewed from an NCK perspective - but quite explainable if you look at from the personal financial incentives of the existing property owner! And therein lies the problem. Whose interests was A Scali really furthering - NCK or Scali consolidated.?