Argosy attacks DNZ 'using the media'

Ian Purdy from ACC Photo / Paul Estcourt

Trevor Scott, an independent director of $900 million Argosy Property Trust has attacked DNZ Property Fund.

Addressing Argosy's annual meeting at Greenlane, Scott said DNZ had agreed not to "use the media" to further its cause in seeking to take over Argosy.

"It agreed to deal directly with the independent directors. A day after that, they again used the media for an extensive release of their proposal," Scott said.

About 200 investors are meeting to decide to a number of resolutions which include voting on internalisation which would mean a $20 million payment went to OnePath owned by ANZ.

Scott has urged investors to vote against resolutions proposed by powerful institutions who want OnePath fired as the manager.

But Ian Purdy of ACC fired back at Scott's board accusing them of being bad managers who should leave.

ANZ was not involved in managing property anywhere else in the world and badly-performing managers should not get a big payout, Purdy said.

Tim Storey, DNZ chairman, hit back at Argosy accusing it of lacking transparency in its management and objecting to the media accusation.

"We didn't give an undertaking but we thought it appropriate matters were discussed directly rather than through the media," Storey said.

He implored investors to reject the internalisation proposal and consider alternatives, forcing the board to commission a comprehensive independent report explaining all the alternatives and financial benefits of a new path such as another manager taking over, a process which could be achieved quickly.

"It's only then we will be in a position to make a proper decision," Storey said.

"This process has been characterised by vigorous and hostile responses from the manager but I don't want to get into petty debate," Storey said.

He also asked investors to consider why they would think of paying $20 million to have precisely the same managers, same governance team and same directors in charge of Argosy.