$32.5m for Argosy trust manager

A proposal to internalise the management of Argosy Property Trust includes a $32.5 million payment to the trust's manager.

The listed property fund - the former ING Property Trust - said yesterday that the payment reflected the fair value of management arrangements that would be relinquished.

The independent directors of Argosy Property Management had agreed with the manager's shareholder OnePath - wholly owned by ANZ bank - to make progress on the potential internalisation of the rights to manage the trust.

It was also announced yesterday that OnePath had agreed with the manager of the Vital Healthcare Property Trust - formerly ING Medical Properties Trust - to make progress on the potential internalisation of the rights to manage that trust.

OnePath is also the shareholder of Vital's manager, with further details of that proposal not yet available.

The proposals are conditional on approval by unit holders and trustees, who are to be provided with independent reports on the proposals by Grant Samuel & Associates.

It was expected the Argosy proposal would be completed during August, after a unit holder meeting and subject to approval.

In November, Argosy said its portfolio of 81 properties was worth $946 million. As at December 31, Vital's investment properties were valued at $517.5 million.

- NZPA