Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • April 1999
  • Case
  • HBS Case Collection

General Property Trust

By: Peter Tufano
  • Format:Print
  • | Pages:11
ShareBar

Abstract

In 1994 General Property Trust, an Australian property investment trust, was anticipating future cash needs beyond those that the Trust could fund with internal cash flows. The managers of the Trust were considering a novel financing structure whereby it would sell call options on the Trust's units. The options' structure made it likely that they would be exercised, and therefore investors would choose to buy the Trust's units. The managers had to determine the appropriateness of this funding scheme in light of the Trust's alternatives and evaluate the proposed pricing of the options that would be offered via a rights offering.

Keywords

Financing and Loans; Financial Institutions; Financial Services Industry; Real Estate Industry; Australia

Citation

Tufano, Peter, and John C Handley. "General Property Trust." Harvard Business School Case 299-098, April 1999.
  • Find it at Harvard

About The Author

Peter Tufano

General Management
→More Publications

More from the Author

    • October 17, 2022
    • Harvard Business Review (website)

    When Climate Collaboration Is Treated as an Antitrust Violation

    By: Matteo Gasparini, Knut Haanaes and Peter Tufano
    • 2022
    • Faculty Research

    Crises and Collective Purpose: Distraction or Liberation?

    By: P. Tufano
    • May 2022
    • Management Science

    Can Gambling Increase Savings? Empirical Evidence on Prize-Linked Savings Accounts

    By: Shawn A. Cole, Benjamin Iverson and Peter Tufano
More from the Author
  • When Climate Collaboration Is Treated as an Antitrust Violation By: Matteo Gasparini, Knut Haanaes and Peter Tufano
  • Crises and Collective Purpose: Distraction or Liberation? By: P. Tufano
  • Can Gambling Increase Savings? Empirical Evidence on Prize-Linked Savings Accounts By: Shawn A. Cole, Benjamin Iverson and Peter Tufano
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College