27 Jun 2011

Argosy investors demand special meeting

7:21 am on 27 June 2011

The battle over the future of Argosy Property Trust has continued, with investors demanding a special meeting to consider other options for ending the management contract with ANZ bank.

Last week, Argosy said it won't pay the $32 million fee to end ANZ Bank's management of its portfolio, admitting investors would not accept it.

Now ACC - an investor in Argosy - is asking the company to allow unitholders to vote on all other options, including a merger with DNZ Property Fund.

ACC investment manager Nicholas Bagnall says the manager, ANZ Bank, should be stood down without a fee.

He says he wants to ensure that unit-holders get independent advice when comparing the deal with DNZ Property Fund and ANZ Bank.

Mr Bagnall says the trustee also needs the benefit of independent advice once unit-holders have voted.

Argosy wants to bring the management of its properties in house, but institutional investors had argued the price tag is far too high, and the move is not in unit-holders' best interests.

Meanwhile, Grant Samuel is preparing an appraisal report.