This article is from the Australian Property Journal archive
THE ongoing tussle between Asia Pacific Data Centre Group and the sole tenant of its three properties, NextDC, continues to play out after revelations that APDC is concerned about potential regulatory action by ASIC.
Meanwhile, APDC Holdings yesterday announced that Vishant Narayan, former long-term managing director of Real I.S. Australia Investment Management, had been appointed as chief executive officer, and the head of major shareholder 360 Capital, Tony Pitt would step down from his non-executive director positon of APDC Holdings.
The latest hearing in the Supreme Court of New South Wales revolves around APDC’s claim that it was unable to get access to the facilities on “numerous attempts” for inspection by valuers and potential purchasers.
It follows a year-long battle for control of the APDC between Pitt’s 360 Capital and NextDC, which saw 360 Capital seize a two-thirds majority interest in the trust and pursue the sale of the centres, while NextDC built a blocking stake and remains keen to wind up the trust – a spat that has also landed the parties in court.
In a statement to the ASX yesterday, NextDC said that in the Supreme Court of New South Wales on Friday, APDC informed NextDC that one of the key reasons it is seeking valuer access to the properties is to “minimise the risk that APDC will face regulatory action for failing to comply with the Corporations Act”.
The ASIC enquiry concerns the APDC board’s decision to increase the fair value of the properties by $67.2 million, or 31%, to $280 million at December 31, 2017. After releasing its audited accounts for the end of 2017, APDC told the market early in March that a mystery offshore bidder for the three properties, at $280 million, had withdrawn the offer “due to reasons external to the APDC portfolio”.
APDC then made a third pre-emptive first right of refusal offer of $265 million to NextDC, following offers of $300 million and $265 million on the same grounds. NextDC has refused each of the offers, and the properties remain unsold.
NextDC said it had offered APDC access to the properties through an independent valuer appointed by APDC.
“In the light of the latest ASIC development, NextDC is resolute in its view that APDC is not operated with sound governance practices and as such it remains appropriate that the vehicle be wound up.
“Accordingly, the company continues to proceed with its proposal to wind up the APDC Trust and related court proceedings.
“APDC (controlled by 360 Capital Limited) advised the Court that it remains concerned that ASIC has expressly reserved the right to make further enquiries and has left open whether APDC had complied with its obligations under the Corporations Act,” NextDC said.
APDC Holdings’ new CEO Narayan oversaw the European-based Real I.S. Group’s involvement in more than $1.5 billion in acquisitions, divestments and leasing deals across Australia assets, and has also been responsible for managing state and federal government assets and is a fellow of RICS.
Pitt has stepped down from his role at APDC Holdings “as a result of an increase in other business commitments”.
Australian Property Journal
