Published 4 November 2011
The Accident Compensation Corp – which campaigned mid-year to sack the ANZ National Bank Ltd managers of 2 former ING property trusts – sold out of the second of them on Tuesday.
At the end of last year, ING sold ANZ its half of the management companies for what became the Argosy Property Trust & Vital Healthcare Property Trust. Then, in April, ANZ subsidiary OnePath (NZ) Ltd proposed management buyouts for Argosy at $32.5 million and Vital at $14 million.
DNZ Property Fund Ltd tried unsuccessfully to engineer a merger with Argosy, which was internalised for a $20 million payout at the end of August, and Ascot Property Management proposed a $4.5 million buyout at Vital, resisted by both OnePath and the independent directors, who’d got OnePath down to an $8 million-$6 million difference before OnePath decided to stop the internalisation process.
ACC called for the managements of both trusts to be sacked, but that resolution failed at Argosy’s August internalisation meeting.
At Vital, ACC cut its holding from 9.1% to 5.5% in September, selling to another ANZ National subsidiary, AUT Investments Ltd, which took its Vital stake from zero to 9%.
On Tuesday, ACC sold down to zero at Vital, providing the bulk of the 6.2% stake acquired by 3 entities controlled by Paul Dalla Lana, of Toronto – NorthWest Value Partners Inc, NorthWest Real Estate Investment Trust & NorthWest Operating Trust.
Mr Dalla Lana bought in at $1.20/share, a price not achieved since last November though it got to $1.19 on 28 June, a few days after Ascot announced its offer to buy the management contract so it could internalise management.
He’s built up a large portfolio of medical-related properties and established a number of real estate investment trusts in Canada, some with a healthcare emphasis.
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Attribution: Company releases, story written by Bob Dey for the Bob Dey Property Report.