Trinity Group to Sell 50 percent Stake of TFML

Submitted by Jim Thesiger on 7 May, 2010 - 15:51

Trinity Group (TCQ), the Australia based company that concentrates on the investment, fund management and property development business in the real estate sector has declared that it will sell as much as 50 percent of its stake of the wholesale fund management business as the company is currently working on reorganizing its management and reducing debts. Brett Heading, the chairman of Trinity stated that the recent agreement was a part of the initiatives taken by his company in an attempt to reduce its loans with National Australia Bank (NAB).

According to Trinity, Clarence Property Corp is going to buy that stake from the company. It is to be mentioned that Trinity came into the spotlight last year due to the secret payment to a lobbyist. The company announced on February that failing to match with the forecasted cashflow this year is going to be a big blow for the company. Trinity recorded a $38 million worth of losses for the second half of the year 2009 which occurred mainly due to the property writedowns. Under the agreement, Clarence is expected to purchase half of the stake and 50 percent of the stocks of the assets that Trinity has in Trinity Funds Management Ltd (TFML). The buyer is expected to pay as much as $4 million upfront this month. According to the agreement, Clarence will obtain a service trust which has been developed recently to serve Trinity Funds Management Ltd.

It is to be mentioned that the NWS based Clarence holds as much as $300 million plus worth of assets under its management and operates with Westlawn Property Trust, which is the principal externally managed vehicle of the fund manager. The transaction has valued Trinity Funds Management Ltd at $9.6 million, something that was the book value of Trinity during December 2009. The company securities closed at 8.6c on Thursday, sliding down as much as 0.4c.