21 Jul 2011

Argosy independent directors back management move

1:11 pm on 21 July 2011

Argosy Property Trust's independent directors have backed a plan to pay out the manager and bring the management of the property portfolio in-house.

The trust's unitholders are being asked to consider a proposal to pay ANZ Bank subsidiary OnePath $20 million to end its involvement with the company.

Argosy's independent directors, Trevor Scott and Peter Brook, say the deal with OnePath represents good value and avoids the complications and costs that would come with effectively forcibly removing the manager.

The independent directors say a proposal by a group of unit holders, representing less than 10% of the company, to dismiss the manager for no fee is not in unitholders' best interests. Neither is a possible merger with DNZ, they say.

Argosy's trustees have previously told shareholders there's no reason for the manager of the property portfolio to be removed, as OnePath has not breached its obligations under the Trust Deed, nor has it failed to carry out its duties to the Trustee's satisfaction.