Where would we be without a land titles deal for next year? 

Hot on the heels of deals in NSW (2017), South Australia (2017) and Victoria (2018), Western Australia is doing its bit to keep the nation's cashed up superannuation funds and infrastructure-minded investors busy. 

Street Talk can reveal WA has kicked off the partial sale of the Western Australian Land Information Authority, also known as Landgate, with the release of a teaser document to potential buyers. 

Early expectations are the partial sale could fetch as much as $1.5 billion - which would slip nicely into WA Treasury's forecasts and send a much needed capital injection to the west. 

The pitch - delivered by WA's adviser Investec Australia and law firm Ashurst - is the opportunity to take a stake in one of the last remaining property registers of size in the country. 

According to the document obtained by Street Talk, WA is the second last of the major states to commercialise its land registry functions and has accounted for about 9 per cent of transaction volumes by transfers in Australia over the past 5 years.

It gave some detail of what's up for grabs. The teaser explained that the WA government has decided to lease Landgate's automated land title service, as well as its property search function, for 40 to 50 years.

But the state will retain the Land Titles Register, which is in contrast to similar privatisations in other states. 

Land valuations, geographic information and manual processing of land titles will all still be managed by Landgate.

The teaser also sets out the timetable. A pre-marketing roadshow is slated to kick off in early December, with formal expressions of interest due by end of January.

The process will heat up with the release of confidential sale documents and a data room next year. 

Possible buyers may include a range of infrastructure bidders and super funds that have participated in the others states' land deals but have yet to land a strike. That list includes names like IFM, CKI, CBus and SunSuper. 

There are also the buyers in South Australia (Macquarie Infrastructure and Real Assets) and NSW and Victoria (both First State Super), which may also be interested. Although First State, at least, appears to already be overweight the asset class. 

While the teaser is short on financial detail, it's understood tyrekickers have been asked to think about $50 million a year at the EBITDA level. 

Similar deals have been done for 25 to 35-times earnings. South Australia's is at the top of the spectrum at 35-times earnings - in a process also handled by Investec. 

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Debt capital markets have rarely been so sexy. 

The often overlooked (in Australia) but often very profitable debt side of investment banks' capital markets teams could be in for a bumper few years should the local banks regulator get its way. 

While their equity capital markets colleagues have been busy pulling deals, debt capital markets bankers have been thinking about how to raise $80 billion for their biggest clients - the big four banks. 

It's a huge ask. 

While the big four banks are sophisticated issuers and familiar to big bond funds around the world, the quantum of funds raised and relatively short time to get the cash would be unprecedented. 

The Australian Prudential Regulation Authority would like to see each of the banks add another four per cent to their risk weighted assets by 2022 - and they want them to do it using "tier 2" subordinated bonds. 

That means another $17 billion to $20 billion for each of the big four - according to calculations from both equities research analysts and debt bankers - or about $80 billion all up.

Add in refinancings to existing subordinated debt and the combined cash call grows to about $120 billion across the four years. 

The problem is that globally, only about $50 billion is raised every year. So in theory, four Australian banks would account for more than half of that global issuance each year for the next four years - and then well into the future as they refinance what's likely to be seven and 10-year money. 

As one onlooker put it, the tank is too small for the fish. 

The question is what the banks - and those often overlooked DCM bankers who are preparing for a busy few years - can do about it. 

The obvious answer would be to structure the debt raisings differently and issue a new type of debt - tier three or non-preferred senior - which sits higher up the capital structure.

It would be in line with other big banks globally - and investor mandates, which have evolved to tip in about $200 billion a year into "T3" raisings. 

But APRA likes what the banks currently do with the T2 raisings and doesn't want more complexity. And while APRA's new guidelines are still technically in a consultation period, if there is one thing the big four banks do know it is that the regulator has probably already made up its mind. 

So cue the sharp minds inside DCM teams, who are very much in demand. It'll be interesting to see what happens. 

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Investment bank UBS was in the market on Thursday, seeking to offload a $44 million slice of shares in enterprise software company TechnologyOne.

The  block trade comprised eight million shares and was on behalf of management, according to a term sheet sent to fund managers. The $5.55 offer price was pegged at a 5.9 per cent discount to the last close.

The selldown came after TechnologyOne this week delivered its ninth consecutive year of growth to a record net profit of $51 million. 

Chief executive Edward Chung told The Australian Financial Review on Tuesday that TechnologyOne could accelerate its growth beyond the pace of doubling revenue and profit every four to five years.

However, his vision is reliant on the $1.8 billion company getting its British operations and new consumer-facing apps "humming", as well as continuing to shift its on-premise customers to the cloud.

Coming in at the upper end of its guidance, TechnologyOne recorded a 15 per cent jump in net profit before tax to $66.5 million, while after- tax profits also climbed 15 per cent to $51 million, for the year to September 30.

The business' enterprise resource planning software is deployed in more than 1200 customers. The stock has risen almost 20 per cent this year.

 

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Fund managers are still scratching their heads about Brookfield Capital Partners' proposal for Healthscope. 

To recap, Brookfield proposes paying $2.55 a share via a scheme of arrangement or, if the scheme is not successful, $2.42 a share via an off-market takeover.

The scheme part of the two-legged offer is slated to be run first, but the scheme meeting would not be held before April 1 next year. 

In the meantime, Brookfield has its work cut out trying to shore up its financial models inside Healthscope's data room, and has its bankers scouting for funding. 

Fundies have had two weeks to think about the unprecedented deal structure, which was designed to overcome opposition from rival bidder BGH Capital and its partners including AustralianSuper. 

As it stands, BGH and co account for 20 per cent of Healthscope's share register. You would have to think they will vote against the scheme, even if it comes after AustralianSuper is supposed to be unshackled from its co-operation agreement with BGH. The $140 billion money manager clearly wants to invest for the long-term and clearly wants to do it alongside BGH. 

So should the scheme fall by the wayside, the second prize for Brookfield would be taking more than 50.1 per cent of the company and control via the off-market takeover. 

It's a lower hurdle and a more plausible deal. 

But it would have implications for Brookfield's all-important funding. Getting leveraged finance for a 50.1 per cent stake in a hospital operation without cashflow control and in light of issues at the new Northern Beaches Hospital sounds like a big ask. 

Throw in volatile financial markets and Brookfield and its bankers - Bank of America Merrill Lynch - have their work cut out. 

It's one that could play out well into next year. Healthscope shares were trading at $2.27 on Thursday. 

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It's back to school for social infrastructure funds and other public private partnership investors who have been asked to run the numbers on a stake in ANU Student Accommodation. 

Boutique adviser Ironstone Capital has sent a teaser document to potential buyers across the infrastructure investment sphere, launching the process on behalf of dual-listed Infratil. 

Up for grabs is Infratil's 50 per cent stake in ANU Student Accommodation, which holds a 30-year concession to provide student housing at the Australian National University in Canberra.

The concession delivers Infratil and its fellow investor, public servant retirement fund Commonwealth Superannuation Corporation, rental from nine on-campus residences with nearly 4000 beds. 

Infratil has the stake on its books for $107 million, and it was responsible for $5.5 million in underlying earnings in the six-months to September 30. 

The deal is expected to be an IRR shootout between domestic PPP investors, with similar deals typically done in the 8 per cent to 10 per cent range. Such metrics would imply a $150 million to $200 million sale. 

Ironstone has called for expressions of interest by next month, with the auction's first round slated for early in the new year. It is understood Commonwealth Super Corporation is not a seller, but it is not known whether the fund has pre-emptive rights over the stake and, if so, what exactly they are. 

The release of a teaser document comes soon after Infratil flagged a strategic review of its ANU student accommodation concession on November 8. Infratil said it would engage with "market participants" with a view to "maximise value", which has sparked the sale process. 

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