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New World Order: G20 Reforms After The Financial Crisis « The …

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THE sting is on. . As many are finding to their cost, even as they leave Macquarie’s embrace there is a fee to pay.
Even as it reinvents itself, there are ample signs that those who may have considered themselves Macquarie’s closest allies should watch out.
If you’re a unit holder in Macquarie Airports, the sting means $345 million in tough luck paid straight to Macquarie Group.
It’s not quite the slick picture of Macquarie’s model as a “client-driven model” depicted by its urbane chief executive, Nicholas Moore, at Wednesday’s annual meeting. Analysts reckon the kiss-off with Macquarie Group could cost them $689 million.
Unit holders in Macquarie Infrastructure Group should brace themselves for some tough luck too. All for a price.
For those who bought into the various Macquarie-badged unit trusts based on promises about Macquarie management “expertise”, there may be something close to a breach of trust as Macquarie disbands, dispels, relegates and disposes of these once-applauded listed vehicles.
This fee is more than half the $546 million paid by Macquarie Airports in base and performance fees to Macquarie Group since MAp, which houses Sydney Airport among other assets, was listed in 2002.
Most surprising for unit holders so far has been Macquarie’s proposed $345 million fee in scrip for its departure as manager of Macquarie Airports. can reveal that some unit holders are talking up a vote against what they see as an outrageous impost.
Unrest is brewing. MAp’s independent directors reckon the job of managing MAp can be done for $11.
Then again, perhaps unit holders should be familiar with the notion of breach of trust. The same directors openly admit they paid about $84 million a year for Macquarie to provide management of the fund for the past six years.5 million a year.9 per cent.
Everyone knows the story of Macquarie as a fee factory avidly promoting its funds, something the investors who bought Macquarie’s story about Brisconnections can attest to after seeing their initial investments plummet 99.
But the cost of Macquarie’s externally managed funds not doing business with Macquarie has been, until recently, a poorly understood phenomenon.
“The greed has resulted in things like River City and BrisConnections, which are just stupid transactions in terms of their size and the way they are structured,” says Brad Potter, a portfolio manager with fund manager Tyndall Investment Management.
RiskMetrics highlighted various mechanisms known as poison pills within the funds that effectively lock the fund to its manager, even if other parties are keen to take over underperforming assets.
The risks faced by Macquarie Group’s external funds as they leave Macquarie’s grip were presciently highlighted late last year in a report by shareholder advisory service RiskMetrics titled Breaking Up is Hard to Do.
The only alternative for would-be suitors is to buy out Macquarie’s management rights, even though in Macquarie’s case there is no legal obligation for unit holders to do so.
The only alternative for would-be suitors is to buy out Macquarie’s management rights, even though in Macquarie’s case there is no legal obligation for unit holders to do so.
MAp shareholders, speaking on a confidential basis, express a range of emotions about the fee – but some are threatening an outright revolt.
“I don’t think Macquarie should be paid anything,” says one. “I don’t think Macquarie should be paid a single cent.” Continued…

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AUSTRALAND, which reported a loss of $269 million for the first half, faces an uphill battle but will survive, brokers say.
The diversified property group’s results to June 30 compared with a $26 million profit in the first half last year.
The group also unveiled a $475 million capital raising to help shore up the balance sheet. Excluding impairments, its operating profit fell from $68 million last year to $60 million.
Matthew Bertram of Deutsche Bank said Australand was not in a good strategic position to reinvest ‘‘opportunistically’’.
Property trust analysts said that while Australand had sufficient liquidity to survive, the equity raising was disappointing. ‘‘Concurrent with the result, Australand launched its 7-10 underwritten entitlement offer.
‘‘Margin and return on equity improvement may take several years,’’ he said.
‘‘In our view privatisation would have been a better outcome. The additional equity contributed by Australand’s major shareholder, CapitaLand, could have been used to privatise Australand,’’ he said. We view Australand as fairly priced relative to competitors, and our rating is ‘hold’. Despite trading at a discount to net asset value, we prefer developers with stronger opportunities.
‘‘Further, privatisation or a takeover could occur at or around the net tangible asset.’’
Mr Bertram said the upside for Australand included an earlier and better than expected housing recovery, which might push its residential development earnings above Deutsche’s expectations.’’
Mr Bertram said that while Australand had reduced financial leverage through its recapitalisation, development by nature was capital intensive. Downside risks include a deterioration of asset/land values and development margins which will have a negative impact on future earnings.
UBS’s property team upgraded Australand from ‘‘sell’’ to ‘‘neutral’’ and increased its price target from 40c to 52c. The group, with the potential for lower asset values to harm its loan to value ratio, combined with lower sales of apartments and buildings, might have ‘‘difficulty extending debt maturity’’.

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MORE than $50 million has changed hands in industrial deals in Sydney’s western corridor in recent months, including by the furniture retailer Ikea.
The giant, do-it-yourself furniture group bought a large industrial property in Rhodes for a new customer pick-up centre. It comes as the food retailer Costco also looks to expand, recently gaining approval to develop a site at 15-21 Parramatta Road, Auburn.
Ikea will use the site to service its strong-performing superstore at the Rhodes Waterside Shopping Centre.
Cameron Grier, the managing director of CB Richard Ellis, Parramatta, and Tony Durante, associate director of Colliers International, negotiated Ikea’s purchase of the site at 1-5 Leeds Street, which includes two warehouses totalling about 7600 sq m on a land holding of 11,318 sq m.
“This latest purchase by Ikea demonstrates the current strong demand from industrial owner-occupiers examining for larger sites across Western Sydney,” Mr Grier said. It has outgrown its existing warehouse. “With interest rates at all-time lows and a general feeling that the market has bottomed, purchasers are capitalising on opportunities to acquire strategic landholdings. The two-hectare site, which includes a 9000 sq m building, is being offered for sale through CB Richard Ellis.”
The next test of the owner-occupier market will be 33 Davis Road, Wetherill Park.
Mr Durante said Ikea intended to occupy one of the two existing buildings on the site.
Mr Grier said the Ikea sale highlighted increased interest in the Rhodes area, which had traditionally been tightly held. . The adjoining building would be refurbished or rebuilt.

WHAT’S AHEAD: Before the global financial crisis hit last year, Toyota looked as though it was doing almost everything right in boosting sales and solidifying its reputation. Although hopes are high in the industry for a turnaround in …

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Toyota battered by global slump, strong yen, hoping for turnaround …

WHAT’S AHEAD: Before the global financial crisis hit last year, Toyota looked as though it was doing almost everything right in boosting sales and solidifying its reputation. Although hopes are high in the industry for a turnaround in …

Continued here:
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With the global financial crisis and ensuing economic slowdown passing its first anniversary, Business RT spoke with Aleksandr Osin, Chief Economist at Finam Management about how the Russian economy has fared.

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The global financial crisis and economic downturn, one year on: Finam

“We provide successful strategies through this training course to company staff so they will learn how to cut their costs and increase productivity as they battle the global financial crisis ,” he said Thursday. …

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CAAI News Media: CAMFEBA, Japan run course on global crisis

“We provide successful strategies through this training course to company staff so they will learn how to cut their costs and increase productivity as they battle the global financial crisis ,” he said Thursday. …

Original post:
CAAI News Media: CAMFEBA, Japan run course on global crisis