Originally Posted by
Jerry
What is the general take on the announcement
http://nzx-prod-s7fsd7f98s.s3-websit...537/273628.pdf ?
Was the drop in share price due to general growly sentiment or are there ramifications of this
announcement regarding the integration of its Australian and New Zealand management platforms.
Good question Jerry and as I hadnt understood the announcement at the time , a question that made me go and investigate given that I am a small holder.
Firstly, Northwest is a 24% stake holder in VHP (Vital Healthcare Property Trust) and given the naming I am going to assume they also fully own the property management vehicle that VHP outsources their property management to.
From the last Annual Report
The Manager of Vital is Vital Healthcare Management Limited, awholly owned subsidiary of NWI Healthcare Properties LP. TheManager has responsibility for the management of Vital inaccordance with the Trust Deed.The Manager’s responsibilities include the day-to-daymanagement of Vital’s portfolio of properties and assets,negotiating the acquisition and disposal of assets, developmentand construction planning and management, treasury andfunding management, ensuring Vital meets its financial, reportingand other statutory and regulatory obligations andcommunicating with unitholders and the market.Vital does not engage or employ any Directors or employees ofits own. The Manager provides a highly experienced and diverserange of professionals with expertise across a range of areas
So I will also understand from the announcement that Northwest look to rationalise their property management platform (software as well as people?) and this will improve the services they provide to VHP. It may not of course reduce the cost of providing these services to VHP, but should keep them more competitive in case VHP considered other options.
I personally wouldnt see recent price movements in VHP as anything other than market fluctuations possibly based on projections of increased funding costs etc
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