APGF Management (APGFM) has quashed claims by fund management group CYRE Trilogy that investors rejected the Brisbane-based property group’s recent merger proposal.
Investors in 10 single-asset property syndicates and six Austgrowth investment trusts managed by APGFM were supportive during the property group’s merger proposal, managing director Geoff McMahon told InvestorDaily.
He said the ultimate merged fund comprised more than 50 per cent of the gross assets on investors in the eligible funds.
“While a number of funds chose not to participate, there was overwhelming support from investors for the prudent management skills of APGFM and its management team,” McMahon said.
“We are encouraged by investors who did not support the merger proposal but were clearly in favour of our prudent management of their money.
“This has been evidenced by the capital gains enjoyed by most of the funds that were eligible for the merger. Our success has always been predicated on the proactive management of fund assets.”
McMahon said APGFM respected the decision of investors who did not wish to participate in the merged fund.
“Following their decision, we have outlined a clear future strategy for the management of their funds and their exit. Our priority and focus is to continue to proactively manager their funds and to maximise investors’ returns through an exit for their funds,” he said.
“It should be noted that the funds which voted against the merger will ultimately not bear any costs from the merger as these will be offset against APGFM’s disposal fee on the sale of the fund’s properties.”
Last week, CYRE Trilogy said investors in each trust – amounting to more than the 5 per cent of units – approached the fund manager and gave their approval for it to call the meetings on their behalf to vote to replace APGFM as manager and appoint CYRE Trilogy.
