Sharechat Logo

Proposal to internalise Argosy Property Trust management

Tuesday 19th April 2011

Text too small?

A proposal to internalise the management of Argosy Property Trust includes a $32.5 million payment to the trust's manager.

The listed property fund - the former ING Property Trust - today said the payment reflected the fair value of management arrangements that would be relinquished.

The independent directors of manager Argosy Property Management had agreed with the manager's shareholder OnePath - wholly owned by ANZ bank - to internalise the rights to manage the trust.

The proposal was conditional on approval by unit holders and the trustee of the trust, who would be provided with an independent report on the proposal by Grant Samuel & Associates, Argosy said.

It was expected a unit holder meeting would be held, and subject to approval, the proposal would be completed during August.

The transaction would be funded through the trust's property sale programme and existing bank facilities.

The maximum banking loan to value ratio had been increased from 45% to 50%, although the trust's objective remained to maintain its gearing at less than 40% of property assets over the medium term.

Under the proposal, the manager's remuneration arrangements would be varied so that management services were provided on a cost recovery basis only, Argosy said.

All directors of the new manager would be appointed at the direction of unit holders.

In November, Argosy said its portfolio of 81 properties was worth $946 million.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

New Zealand Rural Land Company Limited (NZX: NZL) Agreement to acquire large scale dairy asset portfolio
EROAD Limited (NZX: ERD) launches Clarity Solo Dashcam
22nd October 2021 Morning Report
Pictor ready to roll out game-changing COVID antibody test in New Zealand
Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto