PFI's manager sale welcomed

AMP Capital Investors' sale of listed landlord Property For Industry's manager to DPF Management drew praise from professional Auckland institutional investors.

Craig Tyson of OnePath said the market was not anticipating the deal but he was pleased to see PFI's management in the hands of interests associated with Auckland property experts Greg Reidy and Malcolm McDougall.

"It was not expected but is a good fit for the management team at DPF Management, owned by McDougall Reidy," he said.

"They already manage the $400 million unlisted Direct Property Fund so they have some form in this space.

"Malcolm McDougall, one of the directors of DPF and a shareholder of the manager, is one of the guys who set up PFI nearly 15 years ago before selling out to AMP," Tyson said.

But he could not say what price AMP might get.

"PFI is a company rather than a trust structure and it has an iron-clad management contract so there is no need for the new manager to acquire units to have a blocking stake."

Shane Solly of Mint Asset Management said the DPF executives were experts in their field.

He also sees the deal as beneficial for PFI which owns 50 industrial properties valued at $351 million. The sale is due to settle on January 20.

Some of McDougall Reidy's developments lately have included Parnell's Quest short-stay apartments at Carlaw Park, the DataCraft/Nestle/SKM building next door, the neighbouring KiwiRail/National Library NZ block and Albany's new 38-unit Quest short-stay apartments.

Direct Property has been one of New Zealand's most active commercial property investors lately and describes its mandate as being "an unlisted company designed and managed to represent, as close a surrogate to direct property ownership as possible".

"The performance of the fund is directly linked to the performance of the property."

Direct's board is Reidy, McDougall, Arthur Young, John Waller, Sam Bufton and Wendell Phillips.

Shares in PFI were trading around $1.16 on Friday.