Ann: Monthly Update - May 2018, page-4

You've nailed my issue Tone - any sale of a commercial building is most definitely influenced by the prevailing lease. Imagine spending $10-20m or more on a building leased on long term, lucrative terms to the lessee, what would that force a discount of?

So why shouldn't it influence water rights values.....?

And given the volatility of water values versus equivalently valued commercial buildings, the NPV discount for water should be significant!

When those leases are largely to associated parties (other Duxton group entities) on questionable terms, why should the discount not be multiplied further?

Appreciate any other views out there but IMO I certainly cannot see value.