This article is from the Australian Property Journal archive
MACARTHURCOOK Property Securities Fund has received a proposal from BlackWall Property Funds to merge with P-REIT, an unlisted property trust.
However MacarthurCook Funds Management Limited said the proposal is incomplete and it currently has proceedings in the Supreme Court of New South Wales against RFML, both in its capacity as responsible entity of P-REIT and in its personal capacity, seeking damages of approximately $18 million.
“In its proposal, BlackWall refers to merger discussions. Those discussions have occurred, but have focussed on proposals to settle the proceedings.
“The current proposal does not appear to attribute reasonable value to the proceedings and would therefore result in an unfavourable settlement of the proceedings for MPS if a merger was to proceed on the terms of the proposal,” MCFL said.
MCFL also said the proposal contemplates an exchange of units on a 3:2 ratio between MPS and P-REIT, however as P-REIT is not listed it is not possible, in the opinion of the directors and having regard to all circumstances, to assess the proper value of P-REIT.
Australian Property Journal