KEY POINTS:
Merger talks with the Calan Healthcare Properties Trust have ended, ING Property Trust Management said today.
An independent adviser appointed by the independent directors of both boards deemed a scrip merger fair but the Calan board was not satisfied with the proposal.
The ING board said it was disappointed.
ING also announced its intention to undertake an on-market buyback of up to 10 per cent of its units from Friday.
"The decision to undertake this on-market buyback was taken following the termination of the Calan merger discussions and the recent fall in the trust's unit price, which has traditionally traded at a premium to its net asset backing, but is now trading at a discount," ING said.
The net asset backing of the units of the trust was estimated at $1.30 per unit at March 31. The units were up 1 cent to $1.23 today.
"We believe that our units, at current levels, represent demonstrably good value and, while they remain so, the trust will be actively seeking to purchase them through an on-market buyback," chairman Mike Smith said.
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Meanwhile, ING Property Trust said today it had bought two industrial properties -- one in Albany, north of Auckland, and one in East Tamaki -- for $26.9 million.
The off-market acquisition for $17.1m of the Albany property involves swapping three smaller industrial properties, valued at $16.7m, for the larger asset.
The East Tamaki acquisition was valued at $9.8m is a sale and leaseback arrangement with Fisher & Paykel Appliances.
The acquisition reflected a purchase yield of 8.2 per cent.
- NZPA
