AMP, the new co-sponsor of MacarthurCook Industrial REIT (MI-REIT) has expressed its plan to regain the trust of unitholders before it embarks on new acquisitions, possibly industrial properties in Japan and Singapore.
According to Simon Vinson, head of Asian property and new business initiatives at AMP Capital Investors, concerns raised at a recent turbulent general meeting “will become front and centre in the way we will operate.”
Concerns include failure to consult unitholders early enough about the governance and investment processes of real estate investment trust (REIT) and the controversial recapitalization plan, Mr. Vinson said in an interview yesterday.
The unitholders were only presented with the rescue plan, which was approved by narrow margins at a meeting held on Nov 23, less than two months prior to the specified deadline for the REIT to meet its obligation of $315 million.
The deal significantly diluted their holdings and was overly in favor to new investors, said enraged unitholders. Headed by Cambridge Industrial REIT (CIT), which owned nearly 10 percent share, the unitholders prepared a campaign for one week to oust the manager of MI-REIT. However, this plan faltered when CIT said the Monetary Authority of Singapore blocked its intention to take over as manager.
Mr. Vinson said that AMP will now focus on regaining the trust of its investors through better management of the REIT, before planning new acquisitions.
The past travails of REIT have raised distribution yields and depressed unit prices. Mr. Vinson admitted that this would likely make yield-accretive acquisitions difficult. “But the management team and sponsors are capable of showing investment performance that, over time, will bring the unit price up to net asset value,” he said.