govr,Frost's average purchase price is approx $1.00 for 10...

govr,

Frost's average purchase price is approx $1.00 for 10 million shares. Let's say there is a 50% shortfall then he will pick up further 25 million at $0.40. He then owns 35%, and probable control, at an average price of 57 cents per share. He has also, on this basis, sunk a total of $20m into this REIT.

I don't think that he is capable of pulling fees to get his money back, I think he makes it work.

It is worthwhile checking Woolley's background out. He is an ex senior Macquarie banker, leverage lease specialist. He was CEO of Liberman family office ( which has large aircraft leasing business), and now he runs his own, very large, aircraft leasing business with other shareholder being Geoff Dixon ( ex Qantas CEO) and others. One thing this guy knows is how to finance assets. That to me is where his skills and input lies. The funding at RCU is expensive, what better way of improving returns than lowering cost of debt. As an example have a look at MIX ( another I like and own), it refinanced mid last year via 5 year, nil covenant, debt at approx. 4.5% (via ING). they have a debt equity of 67%.

I am buying and I don't consider it a punt.

DYOR