19 December 2008
	Inaccurate and incomplete T E Sewell, Hospitality Property Fund board chairman

The article on property governance (Cover Story December 12) was sensationalist and misleading and the analysis of the Hospitality Property Fund structure was inaccurate and incomplete. The fund's structure, framed to comply with JSE property sector listing requirements, has enabled it to give enhanced returns to unit holders. The article also failed to give a balanced analysis of the internal versus external debate. For example, in establishing and comparing the real costs of internal versus external management, or how best to benefit from the energies of entrepreneurs. What is appropriate for a new or small fund may not be best once it is established and reaches a certain size. We believe that the fund's track record shows sound management which has enhanced unit holder returns. Moreover, the oversight of the majority of independent nonexecutive directors on the fund's board ensures that potential conflicts of interest are dealt with properly. We also find the extensive focus of the article on an individual uncalled for when the issue is a structural one that affects the listed property sector.