ING faced with many choices

ING Property Trust is considering five options in its battle to buy medical landlord Calan Healthcare Properties Trust, including raising its offer or axing conditions.

ING managing director Andrew Evans said he had many choices in deciding on his next move to get 75 per cent of Calan, which has $219.7 million of property, but increasing the price was one of the least likely options.

"We thought we had the price right at $1.25 because, at the time we announced, Calan was trading at $1.15," he said.

"But you put a good offer in and human nature says it's worth more than that, so even at $1.40 people would have said it was not enough.

"We can't overpay for it because our existing unitholders would object."

Last month, ING said it would launch a $1.25/unit cash-and-scrip offer on February 22, valuing Calan at just over $172 million. But a critical independent report from Ferrier Hodgson put Calan's mid-point worth at $1.48 and criticised ING's string of conditions.

An ING team consisting of Evans, trust chairman Mike Smith and Symphony chief and management shareholder Colin Reynolds is exploring all options before deciding on the next step.

"We've got a number of options, which include doing nothing, proceeding with the restricted transfer notice, increasing the price, decreasing the number of conditions or some other variation," Evans said.

This last option might result in offering to buy key Calan assets or taking a lesser stake in the trust than originally envisaged.

ING wanted Calan's property assets rather than its management company and another potential scenario was to buy two key assets accounting for 70 per cent of the portfolio: The Ascot Hospital in Auckland and the Epworth Eastern campus in Melbourne.

"We feel like we're under no pressure because we don't believe there will be anyone else out there," Evans said on the possibility of a rival bidder.

Executives at the two trusts have scheduled a meeting this week to discuss issues.