Rambo, you said: "They have been saying for sometime that they...

Rambo, you said: "They have been saying for sometime that they want to separate the retirement arm from development."

I understand all of this and read the announcements very carefully...plus I speak to their investment people as well.

There is a BIG difference between what you say as opposed to what their future business preference is in going forward.

At the last AGM it seemed to be slanted towards creating a massive pure play retirement company...but the management of which was unsure. Even SGP was suggested at that time.

One could be forgiven for thinking that this might be the way to trade out of these retirement assets and unlock additional value to boot...and that was my understanding towards the end of last year. That is, FKP would flick its retirement assets to a newly incorporated company for a consideration of cash and shares...this would allow them to significantly pay down debt and in turn they would get on with full development of the residential and Gasometer project etc.

Again my understanding back then was that this new entity, which was touted to be of interest to overseas pension funds for its consistent income generation, would be a passive entity with the management been sub-contracted to presumably FKP.

I don't think I am the only one somewhat confused and we really do need a "State of the Nation" address by the new CEO so as to clarify strategic direction.


What does appear to be an emerging trend is this: The "conglomerate" approach to multi-construction is out of favour. Mirvac quit their retirement assets...we all thought SGP wanted to do likewise but they surprised us in May with their intention to re-commit to retirement. Lendlease appears to want to change direction as well.