AXA Property Trust Receipt of Proposal

 
TIDMAPT 
 
AXA Property Trust Limited 
 (a closed-ended investment company incorporated with limited liability under 
              the laws of Guernsey with registered number 43007) 
                       LEI Number: 213800AF85VEZMDMF931 
                                (The "Company") 
 
          Receipt of Outline Proposals for the future of the Company 
 
                                7 December 2018 
 
As previously announced, the shareholder who voted against the proposals to 
place the Company into voluntary liquidation at the adjourned EGM held in 
September 2018, had indicated he wished new proposals for the future strategy 
of the Company to be considered by the Board and, in due course, by 
shareholders.  The Directors had requested that he confirmed and elaborated on 
the proposals with further detail, including an expanded version of the 
proposed new investment policy. 
 
In response to the request, which was addressed to Worsley Associates LLP 
("WALLP"), key elements of outline proposals have now been submitted to the 
Company by Blake Nixon that: 
 
  * the Company revert to a continuing operation; 
  * the Company's investment policy be modified so as to provide shareholders 
    with an attractive level of absolute long-term return, principally through 
    the capital appreciation and exit of undervalued securities, through active 
    investment in undervalued smaller capitalisation British equities; 
  * Blake Nixon to be appointed forthwith as a director of the Company; 
  * the Curno property be taken off the market for the time being; 
  * the policy of returning capital to shareholders be discontinued; 
  * WALLP to be appointed as Investment Advisor to the Company, to be 
    responsible for the implementation of investment decisions made by the 
    Board and to assume executive management of the corporate structure and 
    affairs, as replacement for AXA Investment Managers UK Limited ("AXAIM"), 
    to the extent this role is not to be fulfilled by Blake Nixon personally; 
  * the Company's Board structure be reviewed in light of this new focus (and 
    in particular the potential to reduce the number of directors on the board 
    to three); 
  * an expense reduction exercise be undertaken to reduce the administration 
    and general costs of the Company as an ongoing listed vehicle; and 
  * the best option for the asset management of the Curno property to be 
    identified as replacement for AXAIM; 
 
(collectively, the "Outline Proposals"). 
 
Blake Nixon also confirmed that under the Outline Proposals: 
 
  * there will not be any capital returns from the proceeds of the eventual 
    disposal of the Curno property; 
  * in due course, it will be desirable for the Company to raise further 
    capital, at which stage views of investors will be canvassed on continued 
    listing on the Premium Segment or other segment of the London Stock 
    Exchange's Main Market, dividend policy and the possibility of discount 
    control, a continuation vote or other liquidity provisions; 
  * fees will be payable to Blake Nixon and WALLP in respect of investment 
    management of the Company; and 
  * no contribution will be made by Blake Nixon directly to any transaction 
    costs of the Company arising from the Outline Proposals, other than to the 
    extent that he is already indirectly as a major shareholder bearing his 
    percentage share of the Company's costs. 
 
The Board is considering the Outline Proposals and will seek to consult with 
the Company's largest shareholders.  A further announcement will be made in due 
course. 
 
In the meantime, the Board will continue to follow the current managed 
wind-down strategy until such time as shareholders approve any change. In order 
to support such a change, the Board will require a proposal which is 
sufficiently detailed to be shared with all shareholders for consideration and 
which the Board believes could be in the best interests of the Company and its 
members as a whole. 
 
retail.axa-im.co.uk/axa-property-trust 
 
All Enquiries: 
 
Investment Manager 
AXA Investment Managers UK Limited 
Broker Services 
7 Newgate Street 
London EC1A 7NX 
United Kingdom 
 
Broker 
Stifel Nicolaus Europe Limited 
150 Cheapside 
London EC2V 6ET 
United Kingdom 
Tel: [phone] 
 
Company Secretary 
Northern Trust International Fund 
Administration Services (Guernsey) Limited 
PO Box 255 
Trafalgar Court 
Les Banques 
St Peter Port 
Guernsey GY1 3QL 
Channel Islands 
 
 
 
END 
 

(END) Dow Jones Newswires

December 07, 2018 12:22 ET (17:22 GMT)