century may target more becton property funds

Some more detail on Century Funds' intentions : -

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http://www.theaustralian.com.au/business/vote-puts-becton-in-century-funds-managements-sights/story-e6frg8zx-1225916746797

Maurice Dunlevy From: The Australian September 10, 2010
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THE listed Over Fifty Group's Century Funds Management business is likely to target at least five more Becton Property Group funds.

Yesterday Century received unit-holder backing to take control of two of Becton's unlisted funds.

Investors in the unlisted $123 million Becton Office Fund No 2 and $102m Becton Diversified Direct Property Fund voted overwhelmingly to replace Becton as fund manager, fuelling speculation Century would pursue more of Becton's remaining 14 funds.

Century Funds chief executive John McBain would not comment on the group's intentions, but at least three large funds, and several smaller ones, are believed to be on its radar.

Becton Office Fund No 2 unit-holders, representing 59.1 per cent of issued capital, voted in favour of Century, with only 7.4 per cent against. The Becton Diversified Direct Property Fund vote was 73.26 per cent in favour and 1.8 per cent against.

Some 19 per cent of votes held by Becton were not allowed. Although the Melbourne-based property group completed a recapitalisation and debt refinancing little more than a week ago, the rescue package was too late to save it from mostly mum-and-dad investors unhappy with reduced distributions.

The outcome of yesterday's two Melbourne meetings, both adjourned from Tuesday after confusion over a small number of proxy votes, was something of a fait accompli after Sydney-based investment bank Castle Partners, acting for Century, secured the backing of the financial adviser network. Financial advisers had introduced most of the 1200-1300 investors to each fund.

For Century, yesterday's only unknown was the voting intention of Melbourne's APN Property Group, which has a 6.5 stake in the Becton Diversified Direct Property Fund. APN went with Century, which before the meeting had secured 52.5 per cent of the vote.

Becton chief executive Matthew Chun, who did not attend the meetings, said the strong position of the funds -- both with reduced gearing of 44 per cent -- was a direct result of Becton's "active management" during one of the most severe financial downturns in history.