The fund has stated the following:1) Total Leverage Ratio (TLR)...

The fund has stated the following:

1) Total Leverage Ratio (TLR) = 55%
2) Permitted TLR = 60%
3) The reduction in the Distribution will save $120 million pa and reduce the TLR by 2.0% pa. (Therefore 1.0% per $60 million)

Assuming an accross the board fall in asset prices by 15% since 30 June 2008 the 55% TLR would blow out to 65% breaching lending covenants.

They would need to bring the TLR down by 10%!

However,

Post 30 June 2008 the fund has sold the following:

a) Properties totalling $100 million in the September Quarter 2008 plus;
b) Richards Distribution Centre $12.5 million.
c) Euston Business Centre and Wingfield Distribution Centres for $20.6 million.
d) Lidcombe Distribution Centre for a $14.3 million share.
e) Canadian Retail properties for &82 million.

A total of $230 million approx.

Add two quarters of saved distributions of $60 million and the total capital comes to $290 million.

$290 milion / $60 million = 4.8% reduction in the TLR.

The 35% of the Europeon portfolio that's "under negotiation" is probably now worth %168 million.

The remaining Canadian retail portfolio under negotiation maybe $80 million.

That would bring us to a reduction in the TLR of 9.0%. (so close)

Did I miss any sales to help me make up the remaining 1.0%?