NB-napier-blakeley-Property-Review-Banner-728x

SECTION: REAL ESTATE INVESTMENT TRUSTS & FUNDS

Cromwell tells ILFML to give up

CROMWELL has taken another public swing at Investa after CGI Glass Lewis became the second major international proxy advisor to go against Investa Listed Funds Management Limited (ILFML)’s proposal to partially internalise the Investa Office Fund.

Cromwell is yet to find a way to take over IOF – of which its 9.83% stake makes it the largest single unitholder – following the rebuke of its $2.7 billion acquisition proposal last week, which has since been bumped up to $3 billion.

Earlier this week Cromwell described IOF’s $45 million proposal to acquire a half-stake in the Investa Office Management platform, which oversees around $10 billion in office and commercial assets and is owned by the unlisted Investa Commercial Property Fund, as “a worst of all words” outcome for IOF investors.

Cromwell said it will be voting against the related party proposal because “it results in IOF acquiring future uncertainty, embeds questionable governance practices, and reduces investor value both now and in the context of any potential future third party acquisition opportunity,”

Investa told shareholders in recent weeks that it unanimously recommended shareholders approve of the move at a vote on May 31st.

On Friday, it upped its aggressive opposition after CGI Glass Lewis joined ISS as international proxies against the IOF’s move.

“We welcome the CGI Glass Lewis and ISS recommendations that unitholders vote against the proposal,” Cromwell chief executive officer Paul Weightman said, and he reiterated the Cromwell’s sentiment broadcast earlier in the week.

“This is a proposal that lowers the bar in regard to corporate governance. It destroys value for mum-and-dad unitholders to whom ILFML owes a fiduciary duty and is a ‘worst of all worlds’ scenario.

“I find it extraordinary that major institutional funds, who publicly commit to maintain the highest standards of corporate governance and ethical behavior, are promoting a transaction that two major international proxy advisors have recommended against and which an independent expert was not asked whether it was in the best interests of unitholders.” Weightman concluded.

Australian Property Journal

Read more

Australian REITs are alright

GLOBAL investors continue to look to AREITs for defensive assets as the spectre of geopolitical uncertainty looms large. Principal Global Real Estate....

Aspen secures $80m facility

ASPEN Group has taken another step following its restructure, securing an $80 million finance facility of three years with Westpac. The group....

Centuria egg on stapled diet

CENTURIA Property Funds No. 2 is encouraging investors to approve the merger of Centuria Urban REIT and Centuria Metropolitan REIT. Centuria....

Retail sales growth slow

CHALLENGING retail conditions have hit Westfield, with specialty sales growth slowing across its flagship and regional assets. Specialty sales....

AACo beefs up earnings

THE Australian Agricultural Company has posted a meaty 202% increase of operating EBITDA over the past 12 months. The period saw the continued....

Goodman exchanges US$1bn bond

GOODMAN has launched an exchange offer for US$1 billion of its US 144a Bonds that expire in 2021 and 2022. Goodman said the “par for par” exchange....