CITY Pacific is frightened of losing control of a $1 billion fund and is resorting to spooking unitholders, claims Trilogy executive chairman Roger Bacon.
Bacon said City Pacific is trying to frighten unittholders with unsubstantiated allegations about the BalmainTrilogy bid because the company has received 328 million proxy votes of which 97.5% voted for change in the management of the $1 billion First Mortgage Fund.
“City Pacific is really ‘grasping at straws’ when it says BalmainTrilogy’s management fee will exceed 1.5%.
“It has been clear for more than six months that the BalmainTrilogy management fee for the City Pacific First Mortgage Fund would not exceed 1.5% — and this undertaking remains unequivocal,” he added.
Bacon said in relation City Pacific’s comments about the provision of custodian and registry services.
He added that the company had already informed the City Pacific Unit-holder Action Group early this year that it would be outsourcing these services.
“In early April, this important information was posted on our website and that these fees, to be paid by the fund, would be 0.12% a year.
“The commitment to outsourcing these services was then part of our Explanatory Memorandum and Notice of Meeting that was sent to unit-holders on May 24,” he added.
Unitholders will meet to vote on the management of the FMF on June 25.
Australian Property Journal