Vital Healthcare Property Trust's OnePath NZ-owned manager is close to reaching a new offer to bring management in-house, according to its independent directors.
Negotiations are expected to be reached "shortly" after ANZ's OnePath, and directors Bill Thurston and Graeme Horsley don't think dumping the manager will be of any benefit
to unitholders.
OnePath initially proposed a fee of $14 million to internalise the contract, and if it uses the quantum to cut the price as it did with sister company Argosy Property Trust, unitholders may face an $8.7 million bill.
"The independent directors remain confident of negotiating a lower price with OnePath that is in the interests of unitholders and which will enhance the trust's performance," they said in a statement.
The announcement comes after sister company Argosy Property Trust's trustee knocked back a bid to throw out its OnePath manager, saying the company hadn't breached the trust deed and that the cost of replacing the manager would create too much disruption.
The directors said dumping the manager may disrupt tenant and financier relationships and confidence and would likely lead to a destruction of unitholder value.
"The independent directors believe that it is extremely unlikely that the trustee would agree to dismiss the manager," they said.
The units were unchanged at $1.18 today, and have gained 11 per cent this year.
