Opus Capital Group has labelled Century Funds Management's plan to waive $1.3 million worth of management fees on the Opus 21 fund as a desperate attempt to win unit holder votes.
Opus chairman Maurice Kluge said that Over Fifty Group (OFG) owned Century was clearly now in "desperation mode" as it faced defeat in its campaign to oust Opus as the manager of Opus 21.
"Opus Capital has rejected Century's fee holiday proposal to unit holders as a meaningless stunt worth less than half a cent per unit," he said.
"With just days to go before the February 28 unit holders' meeting, with their early supporters jumping overboard, with the Federal Court knocking out their gag attempt on Opus, with their own performance and motivation now under scrutiny, Century has wildly cast about for a last ditch stunt."
"It obviously thinks that by throwing a fistful of dollars at the problem it might win some last minute support. Frankly, I don't think any unit holder can be bought like that."
On Friday Century said it would waive the first year of its management fees if it is successful in being voted in as the manager of the Opus 21 fund.
Century would use the net savings to immediately reduce debt with Opus 21's bank lender, OFG chief executive John McBain said.
"This undertaking is in addition to Century's ongoing commitment to Opus investors to provide parent company financial support for a modest equity raising to be approved by investors as well as the proposed fee reductions set out in the original notice of meeting which includes a halving of property sales fees," he said.
"Unit holders in this fund have seen a long and continuing reduction in the value of their holding. We're offering an opportunity for change, far greater transparency and better management."
Opus 21 holds about $240 million worth of commercial property in Queensland and Victoria.
Over 400 financial planners Australia-wide have clients invested in the fund, according to Century.
