Capital Properties might sell management rights

Thursday 2 December 2004

Capital Properties is looking to sell management rights worth up to $60 million promising a potential windfall to shareholders ahead of any possible takeover bid at the hands of Kiwi Income Property Trust.

By The Landlord

Capital Properties chief executive Chris Gudgeon said while the move to offer property management rights to the open market was not defensive, it would be "unjust" if someone else received the value for rights owned by existing share- holders.

An industry commentator said while the sale of management rights would not stop a full takeover by Kiwi, it was a "frustration at least".

Gudgeon said: "We are facing the music that we are an endangered species.

"We are the only one of 11 listed property vehicles that doesn't have external management, so the whole sector tends to get valued by the norm and we are finding that the value of our management rights is not being properly reflected in our share price."

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