Ann: TGP: TGP commences sale process, page-13

Went back to the 1H results report to check out the fee structure.
1% base fee (Yawn - when FUM is 115M)
But performance fee is pretty juicy for the right manager. basically 20% after 10% hurdle IRR. Therefore a 12% IRR would be a 2% fee. Calculated every 3 years. (See presentation 1H21 result report, Note 15, page 31)

I'm too lazy to figure this out - but if I understand this correctly....back on envelope calc. Dividend to date - maybe 14c? Would need a shareprice of ~$2.60 by end of 3 year period post IPO (Dec - 2022) for 12% IRR. This would be a ~$6.5m pay day for the manager. (2% x 3 x 115M) That would make the sale of management rights fairly attractive to the right manager.

Perhaps if you can use the low point of the GDC share price (~$1.20) as a starting point, you may even be able to charge a performance fee more readily. Though that would be a bit of sneaky / unfair thing to do.

Side note, if this sale process attracts any interest, will be helpful to ascribe value to the portfolio.
Which I believe the market is finding vary difficult to go, given the lack of yield (if its a REIT), diversity, and lack of peers (it partly competes with NXT, but not really the same).