Investors who own shares in listed National Property Trust will be receiving information about the proposal to restructure the company through the post in the next few days, after documents were mailed today.The trust is a subsidiary of St Laurence (in re
Investors who own shares in listed National Property Trust will be receiving information about the proposal to restructure the company through the post in the next few days, after documents were mailed today.
The trust is a subsidiary of St Laurence (in receivership), and it is proposed that its management become internalised and a new company set up so it is no longer a trust.
Large shareholder in the trust, the Cushing family, has expressed its support for the proposal. David Cushing said they would be voting in favour of it.
National Property Trust director Andrew Walker said the proposal was designed to be in the best interests of shareholders and should save money in performance fees.
“The money currently paid out in external fees will instead be retained within the company, and buying out the manager removes an overhang of units in the market and should lead to an increase in unit value. More importantly, by bringing the management function in-house there will be a singular focus on protecting the interests of shareholders and maximising shareholders’ returns,” Mr Walker said.
If the proposal is accepted the new company will be listed on the NZX.
For the year to 31 March 2010 it reported a $13.23 million loss, a better result than the $21.28 million loss it recorded the year before. Its portfolio value is at $191.2 million. Mr Walker said the trust was in a strong position for future growth.
The trust’s annual meeting will be held on July 30.
