The cash flow of the fund was being controlled by the bank first and income fund second. They have got rid of bank now and need to deal with the income fund so the property fund can go back to paying a dividend. I am not sure of the exact position but the income fund holders were promised a distribution and they are short several million of this and thus all future cash flows will continue to go to the unit holders until the shortfall is made up. This financing arrangement was setup prior to Brookfield. It is a messy fund and until it is simplified I doubt it will trade at NTA. I cannot see what Brookfield have done wrong, all shareholders had the opportunity to buy more shares on the same terms and if they choose not to Brookfield were going to mop them all up, that was pretty clear.
MPF Price at posting:
5.0¢ Sentiment: Hold Disclosure: Held
