19 Apr 2011

Management changes at property companies

1:08 pm on 19 April 2011

ANZ Bank is taking steps to bring the management of its property investment companies in-house.

The bank owns Argosy Property Trust, which used to be known as ING Property Trust, and Vital Healthcare Management, previously called

ING Medical Properties Trust.

The bank is pushing the change and has the support of independent directors of both managers.

Argosy Property Trust is currently run by Argosy Property Management.

Under its proposed deal, the manager will receive $32.5 million, funded through bank debt and ongoing property sales.

The manager would effectively then be employed by Argosy, and charge for its services on a cost recovery basis.

Grant Samuel will provide an appraisal report on the merits of the plan, and the changes will need the support of unit-holders and Trustee.

The proposal will be the subject of a vote at Argosy's annual meeting in August.

Details on Vital Healthcare Management's changes are yet to come out.

ANZ Bank says the changes would not be material to its earnings.

National Property Trust and AMP Office Trust have already rejigged their management structures following dissatisfaction from investors over returns.