Centuria Change of Heart

1 November 2018

Last month Centuria partitioned unit holders in Propertylink to support their proposal to remove the Directors of Propertylink forcing an EGM which is to be held on the 15th November 2018. It seems that Centuria have had a change of heart and have now recommended that Propertylink defer the meeting to ensure PLG security holders have time to fully consider information that may follow ESR’s completion of DD and entry into the BIA and that as a result unit holders take no action in relation to the resolutions to change the Directors. The completion of DD and the entry of the BIA is required by the 5th November, so it would seem that security holders would in fact have time before the meeting to consider those matters. Centuria appears to be encouraging Propertylink’s board to continue to support the sweetened ESR proposal but if does not proceed Centuria still wants new directors appointed​. ESR holds 19.9% of the securities in Propetylink and have previously indicated they intend to vote against all of the resolutions proposed by Centuria, who also hold a 19.5% stake in the Trust. Reading between the lines is difficult however I would suggest that three options may be playing out; Centuria do not expect to succeed with the resolution, or Success may not actually be what they want, (ie the disruption to the bid process by introducing a new Board could jeopardise the deal with ESR and result in a loss of value for Centuria), or Centuria have progressed discussions with ESR in relation to a broader deal which includes Centuria allowing the ESR proposal to proceed with the current Propertylink Board. #Centuria #Propertylink #ESR