ING in control of Urbus after slow takeover process

Listed landlord ING Property Trust has control of the $453 million Urbus Properties and looks set to create a new $800 million property business.

Mike Smith, chairman of the trust's management company, said it had acceptances from shareholders with more than 50 per cent of Urbus. The Overseas Investment Commission had also approved the deal.

The trust needed approval because of the involvement of Dutch-owned ING and Australian-owned ANZ, which have control of the management companies of Urbus and ING Property Trust.

Trust managing director Andy Evans said the takeover process had been slow because 11,000 separate acceptances had to be secured.

"These are from many elderly investors who had a big pack of information, some of which is quite detailed.

"They take their time to review that and often get financial planning advice."

Evans said Urbus investors got a 35-page offer document, a 76-page prospectus and a target company statement with another 68 pages.

The average Urbus holder had only 17,000 shares or notes, worth about $19,000. Unlike other entities, Urbus had few institutional shareholders, which also slowed up the process.

Smith said he was confident of reaching 90 per cent.

The merged entity will become the second-largest listed real estate trust behind the $1.2 billion Kiwi Income Property Trust.

Urbus shareholders have until June 24 to accept the deal.

Trust matters

* The trust now has more than 50 per cent of Urbus.
* The takeover process has been slow because 11,000 acceptances had to be secured.
* The merged entity will become the second-largest listed real estate trust.