05 Aug DNZ Alters Argosy Annual Meeting Resolutions
DNZ Alters Argosy Annual Meeting Resolutions 5/08/2011
DNZ Property Fund (DNZ) has confirmed it wishes to put just two resolutions to Argosy unit holders at the Argosy Annual Meeting scheduled for late August, and has made this request to the Manager today.
DNZ Chairman Tim Storey said the resolutions were similar in intent to the six resolutions the company had sought to have discussed ahead of the AGM.
“We still believe Argosy unit holders should be presented with enough detailed information to make decisions about the internalisation proposal advanced by the Independent Directors and the alternatives to it which include our proposed merger. The options available to Argosy unit holders need an independent and thoroughly transparent assessment.”
The resolutions are:
“That the Unit Holders:
(a) request the Manager to:
(i) take all reasonable steps to fully investigate, evaluate and (if appropriate) develop the DNZ merger proposal;
(ii) appoint an Independent Adviser to prepare a written report to the Unit Holders on the merits of all Alternative Proposals, (including, for the avoidance of doubt, whether it is in the interests of Unit Holders that the Manager should cease to hold office and whether the Trustee should so certify under clause 24.1 (b) of the Trust Deed) ; and
(iii) present as soon as reasonably possible the Independent Adviser’s report to Unit Holders for consideration; and
(b) record their view that an important element of the DNZ merger proposal will be that the Manager ceases to hold office as Manager of the Trust and that the total fee payable to remove the Manager and terminate the management rights is limited to the maximum extent legally possible (for example, either no payment to the Manager, if the Manager is removed by the Trustee, or the estimated payment of approximately $12 million to the Manager, if the Unit Holders terminate).
“That the Unit Holders (to the extent lawful) direct, and otherwise request, the Trustee to immediately select and appoint an independent adviser (being a suitably qualified person who is not currently and who (for the avoidance of doubt) has not at any time been engaged in relation to the Argosy Internalisation Proposal) to determine and prepare a report to the Trustee advising (a) whether it is in the interests of Unit Holders that the manager should cease to hold office as Manager of the Trust and (b) whether the Trustee should certify pursuant to section 19(2) of the Act that is in the interests of Unit Holders that the Manager should cease to hold office as Manager of the Trust.”
For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: [email protected]
DNZ Property Fund Overview
DNZ Property Fund Limited owns one of New Zealand’s largest diversified investment property portfolios with commercial office, retail and industrial properties located in the main urban areas throughout New Zealand.
As at 30 June 2011, DNZ Property Fund owned 50 properties with 285 tenants, a weighted average lease term (WALT) of 4.5 years, an occupancy rate of 98% over a net lettable area of 372,279m², and a portfolio value of $638m (31 March 2011 valuations).
DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares and is managed by its own internalised management team. DNZ Property Fund Limited also manages the property portfolio of Diversified NZ Property Fund Limited for Australian institutional investors.