$14m payment proposed to internalise trust management

Thursday 21st April 2011

Plans to internalise the management of the Vital Healthcare Property Trust include a $14 million payment to the current managers.

The trust today said directors of manager Vital Healthcare Management had agreed with the manager's shareholder OnePath (NZ) to make progress on the potential internalisation of the rights to manage the trust.

OnePath is wholly owned by ANZ Bank.

Yesterday it was announced a proposal to internalise the management of Argosy Property Trust - for which OnePath is also the shareholder of the manager - included a $32.5 million payment to the trust's manager.

As at December 31, Vital's investment properties were valued at $517.5 million, while in November Argosy said its portfolio of 81 properties was worth $946 million.

The proposals are conditional on approval by unit holders and trustees, who are to be provided with independent reports on the proposals by Grant Samuel & Associates.

It is expected the proposals will be completed during August, after a unit holder meeting and subject to approval.

NZPA

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