ING's offer 'too cheap'

A $10 million value rise in properties owned by takeover target Calan Healthcare Properties Trust has made a predatory offer look cheap, says the medical landlord.

Calan chief executive Miles Wentworth said that based on the revaluations, ING's offer of $1.25 was well beneath the net tangible asset backing of $1.29 the units were now worth.

But ING consultants challenged the new NTA, saying the units were really worth only $1.25 because Calan should have calculated the price after property disposal costs across the portfolio. Instead, Calan had revalued before disposal costs.

The worth of Calan's properties rose from $204 million to $214 million, according to revaluations from Colliers International DTZ and CB Richard Ellis.

Wentworth fired a shot at ING, condemning statements about it offering Calan investors more diversity with its takeover offer.

"Calan's consistency of growth could not be achieved with a more diverse portfolio mix, and investors should be conscious of Calan's low-risk, medium-return investment profile when comparing Calan to commercial property investments," he said.

He also criticised statements about ING's holding in Calan. ING Property Trust owns 5.3 per cent of Calan, while another entity, ING Funds Management, owns 10.2 per cent.

"The two entities are not connected and the names are the only similarity between them," he said.

Calan's directors have told unitholders to do nothing until an independent appraisal is out.

* Meanwhile, AMP Property Portfolio has nudged closer to getting 90 per cent of Capital Properties after it announced yesterday it had pushed its 88.1 per cent stake up to 88.8 per cent, making compulsory acquisition more likely. Portfolio general manager Stephen Costley again encouraged Capital shareholders to sell, saying even Capital's independent directors agreed with him.

"Capital Properties' independent directors sent a letter to shareholders last week stating that they believe it is likely AMP Property Portfolio will reach the 90 per cent threshold under the current offer and recommended that shareholders who expect AMP Property Portfolio to reach the 90 per cent threshold and move to compulsory acquisition should consider accepting the offer now," Costley said.