This article is from the Australian Property Journal archive
BECTON Group’s funds management business is under siege from OFG after it lost control of two property funds. OFG now has set its sights on the remaining 14 Becton funds.
Yesterday unitholders in the Becton Office Fund No 2 and Becton Diversified Direct Property Fund voted to replace Becton’s subsidiary Lachlan REIT, with OFG’s subsidiary Century Funds Management as the responsible entity.
The two Becton funds have a current aggregate value of about $220 million and will see Becton’s FUM reduce to around $1.1 billion.
Yesterday OFG told Australian Property Journal that it has set its sight on taking control of the remaining 14 funds, together the 16 funds will boost OFG’s FUM to $3 billion.
“We are pleased that unitholders have at last been given an opportunity to vote on the management of their funds. Equally, as their selected candidate, the vote is a pleasing endorsement of our management team and Century appreciates the support of the unitholders,” OFG CEO John McBain said.
Becton stands to lose one of its main businesses if OFG is successful.
In FY10, funds management contributed EBIT of $4.6 million which is a large share of the group’s EBIT of $10.3 million.
Becton currently earns $10.7 million in management fees from the 16 funds.
Meanwhile Becton CEO Matthew Chun said the recently announced recapitalisation and refinancing of the Becton Group will finally put to rest many of the claims made against Becton in the recent past.
“More importantly, it will put Becton on a stable footing to capitalise on its core strengths and enable the group to pursue the numerous opportunities presently before us,” he concluded.
Australian Property Journal
