ING Property Trust today said it was to sell 10 of the 71 properties it recently bought from private superannuation funds MFL and SIL.
ING said it had entered into unconditional contracts to sell 10 of the properties for $30.71 million. The trust's book value for the properties is $27.8 millionafter provision for sale costs.
ING's $282.7 million purchase of land and buildings from MFL and SIL provoked controversy because its management company also manages the MFL and SIL funds, prompting worries about conflicts of interest.
However, an independent appraisal by Grant Samuel deemed the terms of the deal fair.
The sales announced today represent the first stage in the trust's rationalisation plan as set out in the Explanatory Memorandum issued to unit holders, ING said in a statement to the NZX.
The trust's rationalisation programme was "ongoing and progressing well with announcements in relation to further property sales expected over the next few months", ING said.
Sales campaigns for a further 14 properties were in progress and the trust had received conditional offers for two of these, totalling $6.7 million net of sale costs.
ING Property Trust Management Ltd independent director Peter Brook said the directors were "pleased with the level of interest in the properties currently being offered for sale and the sale prices achieved."
ING shares were unchanged at $1.00 in mid-afternoon trade.
