I agree they will need to hoard some cash to put towards...

I agree they will need to hoard some cash to put towards reducing their LVR with the next refinance. The German economy is not travelling too badly and one would expect some growth in valuations over the next couple of years. $50m is likely to be the order of funds that will bring the LVR into the new order.

I would think $25m could be returned to shareholders now (10cps).

However a more conservative approach and one that would put a floor under the SP may be to return 3.5cps now and continue with annual dividends at the current 2.5cps. With the stated aim of providing a special dividend each year up to refinance in 2014 of 3.5cps plus annuals of 2.5cps.