Sandy Maier, chairman of Radius Properties wrote to shareholders on 8 December. If you are a Radius investor, you should have received a copy of this letter. For those of you who haven’t, or are interested, here are the highlights. Sandy writes…

“In spite of the concerted and determined efforts of Chris Holmes and Tony Hannon leading up to the AGM, three new directors were appointed to the RPL Board – Sherry Maier, David Glenn, and myself (the “New Directors”). The final vote at the AGM was approximately 8 million votes in favour of the New Directors to 3 million votes against.”

“The New Directors promised, if elected, to get to the bottom of the various problems within RPL and report back to shareholders fully, frankly and promptly. Unfortunately the news is not good, and your investment in RPL is at risk.”

After analysing previously unavailable company information, we are told that RPL faces some serious short term issues, including… (more…)

It was a very interesting Radius AGM yesterday, with vigorous discussions on both sides and some interesting revelations coming out during the course of the meeting.

David Glenn seemed to have direct access to live share registry information because twice during the meeting he queried (more…)

Radius investors have received two alarming letters in the last few days, one from Radius titled “Radius Properties Limited – External Interference” and one from David Glenn titled “I Believe Your Investment in Radius Properties Limited is AT RISK.”

In short, David Glenn is concerned that the current managers and directors of Radius Properties Ltd are exhibiting a continuing pattern of poor judgement, seriously prejudicing your investment in Radius.

Radius investors Delwyn & Colin Trigg have made a shareholder proposal which, after much subterfuge and obfuscation by Radius, will be voted on at the short-notice AGM on Monday 28 September 2009.

VoV has investigated the allegations very carefully and will outline in this article the background to the allegations and why VoV will be voting in favour of Delwyn & Colin Trigg’s proposal… (more…)

A year ago when I interviewed Radius managing director Chris Holmes, we discussed the lack of liquidity in the shares and investors’ frustration at being “locked in” to an illiquid investment.

Chris explained that the Board, which is led by Tony Hannon, had been looking at the unlisted market as an option for introducing liquidity to the shares. Holmes said he wanted to see it given priority on the agenda at the following board meeting, and that would be his recommendation to the Board.

“The one thing I can see being a necessary problem to solve is getting some liquidity there for people that want to get out.”

They’ve had a good year to address this issue now, so how do you get your money out of Radius?

The short answer is… (more…)

It has been a year since I reported on my interview with Radius Properties’ managing director Chris Holmes, just prior to Radius’ AGM on 23 September 2008.

Here we are a year later, with Radius’ latest AGM scheduled for Monday 28 September 2009. Has anything changed in the past year?

Most definitely!

Unfortunately, they are not pretty changes.

Last year Chris Holmes explained that rather than pay dividends to investors, Radius preferred to spend the money on property developments. The idea was to create capital growth in the share price as opposed to paying direct income in the form of dividends.

Let’s see how they did… (more…)

Radius is an unlisted public company that invests in health care sector property assets. It owns real assets that generate a real income.

The company also has opportunities to add value to some of its properties which have development potential. Radius managing director Chris Holmes says this is the reason shareholders’ dividend income is down. Rather than pay dividends for the past couple of quarters, Radius has spent the money on getting development sites through the resource consent process.

“In the last two weeks we’ve had the Bute Road [Browns Bay, Auckland] site resource consent come through and that’s taken a little over 18 months. Bute Road is a nice site. We’ve nearly got double the value we paid for that particular site.”

The benefit of that ultimately flows through to shareholders, but Holmes acknowledges shareholders may differ in opinion over (more…)

Vestar pumped a disproportionate amount of investors’ funds into two unlikely “investments” – Radius Properties and Clendon Shopping Centre.

One $400,000 “conservative” portfolio we viewed had 15% of the portfolio allocated to New Zealand Property, which on the face of it seems okay. But well over two thirds of this was in Radius and Clendon. [Why such a disproportionate amount in these two? Is there more to this relationship than meets the eye? If you know anything, leave a comment below or email victims@vov.co.nz in confidence.]

The next biggest allocation was MINT Australia New Zealand Real Estate Investment Trust, an entity associated with the chairman of Vestar’s investment committee, Donal Curtin. A conflict of interest, surely? (more…)