This from Michael West article today." For instance, Macquarie...

This from Michael West article today.

" For instance, Macquarie Office Fund is in a battle to survive and recently tapped the markets for equity (directly after another MacEntity had been selling large licks of stock). It half owns the head office, Number One Martin Place, Sydney. The other half is owned by Macquarie Direct.

There is said to be an offer on the table for $450 million but MOF is baulking at the price - which is below book value. In present dire circumstances any offer - especially in that kind of league and with banks reticent to part with 1 cent - is good.

The conflict therefore for the satellites, and the head stock too, is that although cash is definitely king, fewer assets means lower fees. If things get worse, this conflict will only worsen. Hence the sale of assets such as toll roads between various Macquarie vehicles. "

The point is clear. Managers of REIT's are more interested in keeping the corpse alive and intact as long as they rake in on-going fees not doing realestate deals that may shrink or wind-up the fund although such deals would put money back in the shareholders pocket. I doubt that Rubicon or their controlers would even talk to a large Trust that was willing to offer a price to take the whole portfolio that left something on the table for shareholders. Why would they.... the fee trough would be closed!

cheers