Hmmm. . . . I am assuming that the rumor has some legs because many corporations have a cash flow hit due to the pandemic due to either lost revenue, or uncollectable accounts receivable. Due to public regulations, many utilities around the country could not impose electrical restrictions on unpaid bills due to unemployment. With unemployment in the high teens, there was an approximately a 20% - 30% reduction in cash flow, and debt was needed to continued required investments.
I would guess that the commercial revenue stream has taken a huge hit, as they were overcome by events. So they are considering alternative ways to get continuing financing for development projects. Debt is the least desirable, due to covenants, but partial ownership is a preferred alternative. Selling to a minority owner for a cash infusion for continuing development is probably being considered.
However, I would guess, and this is an intuitive assumption that the minority owner as defined by minority, would hold < 50 % interest in the equity of the corporation. . . however, that may or may not happen, and as other companies have done, may sellout or merge with other property managers.
And if any choice other than a minority owner is chosen, there may be changes to the organizational structure, fees, etc. as other people have experienced.
So as mentioned in other financial posts, the economy has been brought to a near standstill, and the cash required for restart is causing a slow, bumpy, chaotic environment where suppliers are slow, irregular, and low skilled labor is undependable as well. . . even though there is a high population, due to rents, foreclosures, slow reopening, landlords have cash flow issues as well for the states. . . .
So this is the rather rare opportunity for large, very large fiscal injections as the health of the population and the financial health of the working class determines the course of the economy, not the other way around. And if you haven't noticed, certain financial theories developed in the 50's through the 70's have been altered and somewhat disproven over the short and medium. . . due to the impact of technology, which as all inventions have, have good consequences and bad unintended consequences.
ie more technology replacing human labor will require ubi (universal basic income) or there will be survival unrest. . .
we live in rapidly changing times, which is unfolding daily
sportsguy
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