So when cwh bought the chicago bldg for $390m it gets an ANNUAL business management fee (annuity) of $1,950,000 per year PLUS a property management fee.
If it bought $1B in net leased bldgs like experian, remax and office max it would get a $5m annual fee and presumably some kind of a property management fee for net leased bldgs where remax, etc do virtually all of the management activities.
No wonder cwh bought all of these bldgs so fast. It needed trades for the gov and mob sales and it had to identify the bldgs in 45 days and close in 180 days.
Plus time is money. Take a pass of the chicago deal and it takes longer to get on the business management gravy train.
This guy portnoy is a genius.
If there is a shortfall in the CAD to pay for the $2/sh dividend, I wonder if he would forego some of his fees to make up the shortfall??????
Or maybe I am being too harsh. Maybe it does benefit the shareholders to pay cwh an extra $1,950,000 annual fee for its ability to dig up this property at a bargain price.