This article is from the Australian Property Journal archive
VALAD Property Group and Peter Hurley have decided to go their separate ways following his failed takeover for Valad’s European business.
At the same time, a $726 million European fund managed by Valad has gone into bankruptcy.
Acting CEO Clem Salwin said the group and Hurley have reached a mutual agreement which will see him step down effective immediately.
As part of these agreed terms Hurley will be paid $1,902,198 which includes an agreed termination payment of $940,000, payment in lieu of the contractual nine month notice period, accrued annual leave and long service leave entitlements.
Salwin said the board wishes him well.
Hurley has been on a leave since December last year after he led a takeover bid for Valad Europe, which had total assets under management of $6.4 billion as at 31 December 2010.
The MBO proposal was made in December by a consortium of Valad’s executives, including Hurley, CEO of Europe Martyn McCarthy, head of funds management David Kirkby, Europe’s chief financial officer Fraser Kennedy, head of Nordics Michael Bruhn and chief operating officer Christian Bearman.
The other executives remain in their positions as of yesterday.
Hurley joined the Valad board in 1997 as joint managing director until 2004 when he took over as the sole managing director.
Prior to joining Valad, he held senior positions at Lend Lease including establishing Lend Lease’s funds management operations in Paris, London and Singapore.
Meanwhile Valad also announced that has received notice of termination of its investment management mandate with Kefren of Sweden, because Kefren’s senior banks’ agent have called up their loan and apply for bankruptcy.
“Despite almost two years of intensive negotiations regarding reconstruction of the debt structure of the company have received an Acceleration and Demand Notice regarding the senior debt and a notice that the senior banks will file for bankruptcy. We will immediately contact the Special Servicer who has an obligation to call for a bondholder meeting in the case of the bankruptcy of the Issuer,” Kefren Properties said in a statement.
Salwin said Valad will now initiate negotiations with the banks’ agent on the terms of the termination and subsequently explore opportunities to evaluate a range of possible strategic alternatives.
Australian Property Journal
