Irongate sells down shares in National Property Trust, raising $7.4 million

Friday 14th May 2010

Irongate Property, the property investor managed by the St Laurence group, has offloaded most of its shares on another St Laurence-managed property concern, National Property Trust.

Irongate sold about 15 million shares in NAP yesterday for around 48 cents apiece, raising $7.4 million. Its holding fell to 1% from 8.8%. Shares of NAP rose 1 cents to 49 cents on the NZX today.

St Laurence got to keep its management contracts for Irongate and NAP when the trustee for its debenture holders placed the group in receivership this month, ignoring a proposal from St Laurence managing director Kevin Podmore to offer shares in a new company to its debt holders.

Irongate general manager Chris Minty didn’t immediately return calls to comment on the substantial security holder notice and the buyer hasn’t yet made a disclosure.

The pressure is being ratcheted up on St Laurence, after a group of NAP unit holders led by David Cushing, of H&G Limited, this week pushed for the termination of St Laurence’s management contract, claiming its fees were too high given NAP’s lacklustre performance.

Irongate changed its name from St Laurence Property & Finance to distance itself from St Laurence, which owns about a third of the company.

Businesswire.co.nz

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