'Abusive, inaccurate' criticism angers real estate leaders

Real estate chiefs have lashed out at ING Property Trust for its criticism of corporate governance and showing most listed real estate entities in a poor light.

ING has released a chart of the rules governing six NZX-listed property trusts.

The chart was highly favourable to ING and the overhauled Kiwi Income Property Trust but critical of Macquarie Goodman Property Trust, National Property Trust, Calan Healthcare Properties Trust and AMP NZ Office Trust.

Chiefs at those four trusts hit back at ING, saying the criticism was inaccurate and abusive.

AMP's Rob Lang said only organisations with corporate governance structure issues were forced to change and there was nothing wrong with his trust's rules.

"We've made all the right decisions on our corporate governance," he said.

Calan chief executive Miles Wentworth questioned the timing of ING's moves, just before an independent appraisal is due of ING's $1.25 takeover offer for Calan. Ferrier Hodgson's report is expected to show the offer in a poor light for being too cheap.

Wentworth said ING's chart was wrong because it showed Calan was not required to hold annual meetings when this was a mandatory duty.

"We overhauled that in 2003 at the request of a unit-holder and our trust deed requires us to hold AGMs. This is just abusive," Wentworth said.

ING had acted in a "high and mighty" fashion.

Kevin Podmore of National Property Trust said overhauling corporate governance was not as urgent as reinstating dividends and rather than focusing on rules for the trust, he had his eye on the trust's balance sheet.

John Dakin of Macquarie said his trust's corporate governance was far better than many other trusts. "We would not see us at the bottom of the pile at all," he said, citing a majority of independent directors on the manager's board and reassurances that annual meetings would always be held.

Analyst Mark Lister of ABN Amro Craigs also questioned ING's criticism of other trusts and its proposed changes, asking whether ING would have made the changes, which were led by Kiwi Income Property Trust.

"Would Kiwi have made their changes had Brook Asset Management and fellow investors not made it clear they wanted the changes made? And if Kiwi had not made these changes would ING have still made theirs?" Lister asked.

Mike Smith, ING's property trust chairman, said his investors would get a better deal if changes proposed to its trust deed were agreed on at the annual meeting later this year.

Unit-holders would have their interests more aligned with listed public company shareholders in five changes proposed to the trust deed.

Unit-holders can nominate and vote on two independent directors who will be on the board of ING Property Trust Management, which runs the listed trust.

Unit-holders will be able to propose resolutions for consideration at annual meetings, a right they were previously denied.