Vote confirms Argosy deal

Peter Brook and Trevor Scott. Photo / Richard Robinson

ANZ's OnePath banked its $20 million after winning the unsightly Argosy Property Trust battle this week and independent directors of the $930 million business say it is time to move on.

Peter Brook and Trevor Scott announced yesterday that 62.4 per cent of investors had voted 80.7 per cent in favour of internalisation so ANZ exits.

"It is especially pleasing that unit holder wishes have been decisively recorded with a good proportion of the units voted. This enables the trust to move forward with a clear direction," said Scott, who was re-elected.

The trust announced that the previous manager's rights had been terminated and $20 million paid.

Some investors remained disgruntled, particularly on superannuation giant MFL Fund's role in the fiasco.

OnePath provides management services to MFL Funds and owned Argosy's manager and ex-MP Philip Burdon is on both boards and the businesses are deemed related parties.

On July 18, an NZX waiver was issued which allowed MFL to vote its cornerstone Argosy stake, a point which angered Argosy unit holders at Tuesday's meeting and was the basis of a complaint from investor Paul Markham of St Heliers yesterday.

"I thought it was bad that MFL voted their 23 per cent of units in favour of OnePath. They had a clear conflict of interest. They even voted to increase directors' fees and to keep Trevor Scott there and to block Steven Blakeley," Markham said.

Blakeley stood for the board, giving an impassioned speech on Argosy's faults which he said included a bizarre scheme to buy Japanese real estate, a move he predicted would have forced the business under had it proceeded.

Blakeley was unsuccessful in seeking a directorship but he complained about the trust's high gearing, selling property for less than purchase price, unsustainable dividend payments and having to bail out a joint venture partner.

Mike Smith, Argosy's chairman, yesterday asked people to move on. "I am delighted to put the unwelcome and unnecessary attention of the last few months behind us and look forward to delivering results for unit holders with the benefits of an internalised management structure."