15 Apr 2013

Property companies to merge

12:32 pm on 15 April 2013

Property for Industry is planning to take over the assets of Direct Property Fund in a merger which will double PFI's assets to $800 million.

PFI says the deal will boost its portfolio to 83 commercial and industrial properties, while bringing the equity from current DPF shareholders.

The companies say the terms of the merger ratio were reached after extensive due

diligence and negotiation between the two boards.

DPF chairman Arthur Young said DPF will cease to exist under the share swap plan.

PFI and DPF have commissioned Deloitte to prepare an independent report on the merits and fairness of the merger to both sets of shareholders.

PricewaterhouseCoopers will also give a separate appraisal report to PFI shareholders on the fairness of the revised base fee structure.

The merger is conditional on both boards being satisfied with the outcomes of an independent report, shareholder and court approvals.

Shareholders should receive details of the proposal in late May with voting in late June.