rvg floating update (afr)

Superannuation fund REST has accused FKP Property Group of acting in self interest by proposing a merger of two of its managed vehicles. As The Australian Financial Review revealed last week, the combined $825 million entity would create the largest listed retirement real estate trust on the ASX 200. The move depends on investors in RVG, a large wholesale fund, agreeing to the plan. A spokesperson for REST, an RVG investor, poured cold water on the merger, citing concerns about FKP’s capacity to execute it. The pension fund said, “The motives behind the proposed merger related to FKP’s agenda to clean up its own balance sheet.” REST stressed that any solution would require “support from all investors”. A source cautioned that RVG, which owns retirement villages in some of the country’s wealthiest suburbs, “may hit a wall” given that it is in breach of its covenants and any attempt to sell down its 42 per cent stake in a listed retirement company in New Zealand is likely to trade at a hefty discount. Gretchen Friemann