Ann: Weekly NAV Estimate, page-18

They need to redeem Notes III in December. They have $113 million in undrawn bank facilities and the additional $59 million needs to paid out of cash and asset sales. They have stupidly used almost all the property security to secure the loans, over $1.2 billion in security to access $410 million in loans or around 33% leverage. They are limiting their ability to structure their debt properly, it really is ridiculous.

In terms of the fees, I canidentify $27.7 million of fees paid in the income statement either to theinvestment manager or its related entities or in the case of professional fees,potential third parties. In the cash flow statement, there is at least another $9.2million in fees paid to the investment manager or its related entities, plus anestimated $13.7 million paid to Dixon Projects (5% margin plus 15% generalconditions fee on $68.8 million refurbishment works), plus an estimated $1.5million in leasing fees. Therefore total fees paid to the investment managerand related entities (with some minimal leakage to third parties) was at least $52million. This was also in a year where there was no significant equityissuance fees and after the manger "supposedly" cut fees. These fees are 1.39x totalrevenue, and represents 3.8% of the portfolio value which is an outrage and is much higher than the likely NOI if all properties were completed and leased.