Property trust portfolio purchase agreement
Agreement to Acquire Portfolio of 71 Properties
ING Property Trust (trust) has announced that it has reached agreement in principle with the trustees of MFL Mutual
Fund and SIL Mutual Fund (vendors) to acquire a portfolio of 71 properties.
The properties are located in Auckland, Wellington and Christchurch and are a mixture of commercial, industrial and
retail buildings. The vendors offered the properties for sale to the Trust as a portfolio. Accordingly, the trust will
look to dispose of a number of the smaller and lower value properties in due course and in an orderly manner.
MFL Mutual Fund and SIL Mutual Fund are two separate New Zealand superannuation funds registered under the
Superannuation Schemes Act 1989.
They have in aggregate $900 million under management and approximately 48,000 members.
The agreed price for the acquisition is $282.7 million. The purchase price will be funded through the issue to the
vendors of 182 million new units in the Trust at $1 per unit and $100.7 million cash. The trust has received approval
from the ANZ Bank to extend its banking facility.
The acquisition is subject to unitholder approval and the approval of the Overseas Investment Commission. Documentation
is expected to be concluded imminently. An explanatory memorandum and an appraisal report in respect of the acquisition
will be sent to unitholders shortly and a date for a meeting of unitholders to consider the acquisition will be advised
accordingly.