Heavyweight investors challenge to $32.5m Argosy management plan
ACC, the Guardians of New Zealand Superannuation, Westpac and BT Private Selection challenge controversial internalisation plan.
ACC, the Guardians of New Zealand Superannuation, Westpac and BT Private Selection challenge controversial internalisation plan.
Institutional investors have entered the fray over internationalisation of the management of Argosy Property Trust, saying the $32.5 million cost is far too high.
ACC, the Guardians of New Zealand Superannuation, Westpac and BT Private Selection, which together hold 9.57 percent of the units in the trust, are challenging the controversial internalisation plan.
Argosy Property Management Ltd, the manager of the Argosy Property Trust, said it had received a request from them for a meeting of unit holders but has decided that the matters raised can be dealt with at the annual meeting, on or about August 8, because it is within 90 business days of the request.
The shareholders want Argosy Property Management out as manager and want the New Zealand Guardian Trust Company, as trustee of the trust, to consider the matter urgently.
They want the trustee to appoint a new temporary manager to prepare a proposal for the management of the trust and to assist in a transition to a new manager approved by unit holders.
Argosy is planning to internalise management, resulting in a $32.5m payment to the current manager, which is owned by ANZ subsidiary OnePath.
The investors said they collectively strongly opposed the payment of $32.5m to cancel the current management arrangements "as we consider this to be far too high a price".
They agreed that internal management would be preferable but want to achieve it without an "inappropriate" $32.5m payment to OnePath.
Unit holders should not have to pay $32.5 million because it was a fundamental right that the trust be managed in their best interests.
The institutions are proposing a resolution that the current manager ceases and resolutions requiring the trustee to appoint a temporary manager to come up with a plan approved by unit holders.
DNZ Property has proposed that it take over Argosy but Argosy has rejected this plan