This has all the up-to-date info under 'Related Links' on the right hand side...
http://www.au.brookfield.com/investment-platform/sites/2011-key-dates
Ty
It is perpetual, they stepped up on 22/2/2010 and applied a 2% step-up margin from 1/4/2010 to the 90BBSW
Yep.
so depending who you read, redemption seems unlikely as even at ~10.5% return general group-think has it they will consider it cheap money and are unlikely to seek redemption.
The $450m raised through MXUPA was loaned to Brookfield Australia Property Trust, so the performance of BAPT is what you have to pay attention to.
Cheers.
Hmm, I was of the opinion that the financial position of BAM was also important, and that BAM is quite well capitalised, and not *particularly* risky. Thus, they could get cheaper funding than 3.9% above BBSW.
However, I'm not entirely sure how grounded in reason my thoughts are.
Furthermore, continuing with the immediately preceding sentence, I figure if BBSW rises much higher (has dropped recently, I know), then they can get cheaper funding - that is “cheaper enough” to make it worth the while to go about the redemption process, and utilise that cheaper funding.
Now, interest rates are going up, short-medium term, so BBSW will go up short-medium term, so 3.9% above BBSW becomes more expensive, and redemption becomes more likely.
Also, if Brookfield Office Properties lists on the ASX
http://www.businessspectator.com.au...listing-pd20110214-E2UFJ?opendocument&src=rss , sure it *DOES* show an intention to expand (less likely to want to pay back $450m of debt)… but also it gives them access to a significant amount of money (billions?) (more likely to pay back $450m). Having said that, theoretically, hybrids are cheaper than equity… so might as well raise less equity and keep hybrids out, potentially?
Also, I’m not quite sure how inter-related BOP is with MXUPA. It is a very complex organizational structure of related entities and associates.
Another consideration is, at $80, I would have thought this would be right up the ally of someone like Brookfield Asset Management (the BAM that I mentioned earlier), either by itself, or through a related entity. I mean, at $80, from the (albeit limited) information that I have, it seems quite decent? – whether that be through an on, or off market buy back or just BAM buying on-market for itself.
http://investing.businessweek.com/b...tocks/private/snapshot.asp?privcapId=53340342 is all 12 months old, but all seems rosy…. And property values have only increased in the last 12 months? Financial results for FY 2011 will be, obviously, as always, crucial… but even merely matching last year should be considered good news?
Management seems smart enough?
At the end of the day, 4.9+3.9 = $8.8.
@ $80, 100/80 = 1.25.
1.25*8.8 = 11%.
I purchased my current lot at under $80. I’m laughing all the way to the bank at the moment, and not too upset whether or not these are redeemed short-medium term or not. My holdings aren’t vast… but I do enjoy seeing the dividends trickle into my account, next to my GNSPA, quarterly. I do regret selling FXJPB @ $90 though.
And, in conclusion, I still can’t form a confident opinion on the likelihood of redemption of these (but don’t reallllly care, as nothing indicates to me that the trust will be unable to pay a dividend). It would appear to me to be a good buy @ $80+, but, I don’t quite back my judgment enough to double my holdings.
Looking at WOWHB, $99.9, 1.1%.... surely will stepup to 3.1% September 2011. Thus, it would seem that WOWHB would need to pay around 3.1% above BBSW to get funding.
BAPT is obviously more risky. However, hybrids are more expensive than debt. It would really depend on a number of factors, which I can’t take into account accurately… but ALE Notes 2 fairly recently listed at a 4% above, so if WOWHB is around 3.1%, and ALE Notes 2 are around 4%....It seems weird to me that BAPT is seen as THAT much riskier that it is, effectively, at 11-4.9 = 6.1% above BBSW.
ALE at less than 4% above (trading at $102), WOWHB effectively at circa 3.1% above, AAZPB at, effectively, 5.2% above…. Etc…. and MXUPA (BAPT) at effectively 6.1% above…..
Okay, so MXUPA is closer to $82 than $80, and BBSW isn’t exactly 4.9%, and the different time-line of when things mature will be important, and the ‘risk’ that Woolworths will redeem wowhb, etc…. but, you get the point. MXUPA at $80 and 3.9% above seems expensive to me.
However, take all of the amateur talk above with a large pinch of salt, because, as I've aptly proven, I have no clue.