raeban, In theory you are talking about a preferential...

raeban,

In theory you are talking about a preferential placement; or an independent REIT satellite of a REIT. So (in theory) it could work (and has) in various spin-offs or Management buyouts or Shareholder buyouts.

In practice however, I don't think the Company would consider this because it would be considered basically to be too much trouble; and it is far easier to sell a property with a binding Management contract ie; not a very clean or easy transaction.

In essence the Company would be divesting any assets under the 'International Asset Valuation Standard' based on the 1907 rule of Spencer v's The Commonwealth of Australia which states (amongst other things) a willing buyer, a willing vendor, an 'arms length' non-related transaction, after proper marketing, and that parties acted knowledgeably, prudently, and without compulsion (how's that for a memory??? LOL!)

In essence they have invited a wide range of potential buyers who (in some form or another) bid for the property, and therefore against each other!

So basically raeban, its easier to sell an asset off in this case to a non-related party than to a related party imo. However, I do like your line of thought., and I think there is a very good argument for it!

Cheers, Pie (: