jv to be signed april 18, page-10

Yes afd, it does not actually say that the units will be listed at this stage but I am just thinking ahead. I figure why go to the trouble and expense of setting it as stapled entity which is a structure eminently suitable to be listed on ASX ( do not know about othe exchanges) and not do it.

I have some stapled securities in AJA property trust which became a stapled security last year after formaly separating from infamous Babcock and Brown stable of companies.

Their explanation at the time was that most property trust are set up like this for tax and operrational reasons.

I have looked up the terms stapled entity and stapled securities and come with same basic explanation, that it is a tax structure and used by many companies such as property trusts.

From the point of view of the unit holder, I think that the main difference is that you delegate most of your rights as a shareholder or unit holder in the trust to the company that is contractualy bound (stapled) to the trust and manages all the afairs and business.

So it will depend on what is in the contract between the trust and the management company and what is in the trust deed - I pressume that the trust must have been set up first, with trust deed and the trustee and company too, then they entrer in the contract that staples inseparably into one entity.

Presumably the trust would own the properties such as solar and wind farms, receive the income from them and distibute the proceeds to the unit holders. CBD already owns (for next 20 years) a wind generation facility in Chapman Island. This is supposed to generate gross revenue of $800,000 or more a year. There is the King Island project in partnership with Hydro Tasmainia. CBD contribution to this project should be completed by now, and the proportion of the project apportined to CBD is to be vended (sold/transfered) to joint venture. Lastly I am aware of the proposed project in Snowy Mountains which was waiting for government approval to get started with the installation, last time I heard. I have noticed that CBD was ominously silent on all the wind projects in their public comments of late appart from general comment from Gerry Mc that they would be "vended" to the joint venture.

I realise that there is such a thing as " Commercial in Confidence" but a bit of reassurance here and there would go a long way for the relationship between small shareholders and the company.

I guess we will have to wait until next Monday to see the final print and decode what exactly it means for you and me.

It was a bit sad to see the earlier gains in SP from the open erroded as the day progressed and depressed market took its toll. Still CBD ended up 10% and is siting pretty at the minor resistance of 16.5c through which so easily shot through earlier today.
I took some profit on a small part of my holding but holding a major chunk for bigger and better things just around the corner IMO.