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To: ild who wrote (24532)	10/15/2004 4:16:44 AM
From: Elroy Jetson	Respond to of 306849

The only toll road Macquarie Bank currently owns is the $722 million SR-125 in San Diego. "California Transportation Ventures, Inc." is the name of their operating company for this project. Apparently Macquarie's interests in Orange County were bought before completion by the government agency which currently operates the toll roads there. tifia.fhwa.dot.gov rppi.org When Macquarie Bank makes an infrastructure investment they obtain certain guarantees from the relevant government agencies. These provide both a minimum return for Macquarie and a full return of capital. In return, revenues beyond a maximum target sometimes accelerate the date of return to the local government of the infrastructure financed. The agreements also stipulate that government agencies do nothing that might damage Macquarie's infrastructure investment -- such as build a new roadway or other improvements to relieve congestion along its own parallel highway or railway. Any violation of these agreements trigger either cash payments or a buy-out of the infrastructure facility. After all, this is Australia's retirement money Macquarie is investing. It has to be safe and secure.

To: ild who wrote (24532)	10/15/2004 5:01:07 AM
From: Elroy Jetson	Respond to of 306849

The current problem with the Orange County toll roads, including the #73, is that they were 100% financed with Toll Revenue Bonds without any equity component. As with any rental property, during the early years of the investment, rents usually cannot cover both the operating expenses and payments on a 100% loan to value mortgage. The debt component of the SR-125 toll road is only 55% of the cost. Macquarie financed the project with $164 million in equity, $400 million in loans and $158 million in grants. This state site has more information on the various toll road projects in California. dot.ca.gov

To: ild who wrote (24532)	10/15/2004 7:54:56 AM
From: Elroy Jetson	Respond to of 306849

Here's the Macquarie Infrastructure Group overview of the SR-125 in San Diego, for the edification of Australian Superannuation (retirement) fund investors. macquarie.com.au In return for the guaranteed minimums and other concessions Macquarie routinely requires, the rate of return on capital employed (both debt and equity) is limited to 18% per annum. These are the details on the Canadian Highway 407 in Toronto. macquarie.com.au Retirement investors can check the latest Traffic and Toll figures on these investments - and if you check out the Photo Gallery . . . . . . macquarie.com.au . . . . . . you can see various views of cars and trucks paying tolls at Macquarie Toll Booths. A kind of pornography for retirement investors.