can you work it out?I can't.like they say they that gearing on...

can you work it out?

I can't.

like they say they that gearing on the main stock is 33% and the covenant is 40%

the balance sheet for the JV is this

Assets
Property investments and loans 8,143.2
Liabilities
Bank debt - current 625.9
Bank debt - non current 5,186.3
Net Assets 2,587.4

gearing is 70%

but there is talk about "look through" gearing of about 46%
and a 55% covenant with the banks

now the debt on the jv is supposed to be "non recourse"

ok..so keep that in mind - none recourse, none recourse

now they have written off the JV already haven't they?

So here is one source of confusion

THEY HAVE WRITTEN OFF THE JV BUT THE DEBT STILL APPEARS ON THE BOOKS in that it crops up as debt across the whole group in the "look through" figure

so what does "none recourse" actually mean?

surely if they have written off the whole jv that would include all the debt wouldn't it

anyway gottliebsen echos this confusion in this article

it is really frustrating

somebody should be ringing the company and clarify the debt situation

I am a bit busy.

one thing they saying is that don't have to refinance until October 2012

18 months down the track

but there is some short term debt due - about $100m


1:00 PM, 27 Feb 2009 Robert Gottliebsen
The GPT story

There are some simple truths to understand about General Property Trust (GPT). Not surprisingly, the share market sold GPT stock down to 46 cents after today’s announcement valuing GPT net assets at around $2 billion. The company has borrowings almost twice that, at around $4 billion, of which $2 billion matures next year, but the group expects to have cash to reduce the debt refinancing to around $1.3 billion.

But there is also substantial joint venture and associated company debt. The GPT accounts are incredibly complex, making everyone nervous about the exact position. For example, there is a whole series of gearing ratios quoted that sound nice but are based on net tangible assets of $1.43 per unit or three times the stock price.

For the market, they are a fiction and the more the GPT directors emphasise them the more nervous people become. The ratios are important in legal lending covenants, but it will be the share market that determines the attitude of bankers when it is GPT debt maturity time.

GPT needs to turn some of the assets that are behind the $1.43 asset backing into cash or convince the market that the GPT balance sheets values are correct. To achieve confidence, GPT needs dramatic simplification, possibly by taking out the local and overseas non-recourse assets and placing them into a separate entity.

ANZ chief Mike Smith says the banking industry will be able to fund the big property exposures and that the Rudd Bank may not be necessary (A Global Banking Tumour, February 27). GPT will be an interesting test.