News

Introduction and background

Following consultation with Shareholders, the Board of AXA Property Trust Limited (the "Company", together with its subsidiaries the “Group”) is pleased to propose that the Company become an investor in undervalued British listed securities and appoint Worsley Associates LLP ("Worsley") as its new investment advisor.

The Board believes that, if implemented, the new investment policy will provide an attractive alternative to the Company's current policy of winding-down its portfolio and distributing the realisation proceeds to Shareholders.

On 26 April 2013, the Company adopted the investment objective of realising all the Group’s remaining real estate assets by the end of December 2015 in a manner which achieved a balance between maximising the value from the Company’s investments and making timely returns of capital to Shareholders. Since then, all except one of the properties then owned has successfully been disposed of and returns made to Shareholders of £49.3 million, equivalent to over 87 per cent. of the Company's net assets when the managed wind-down of the Company's portfolio commenced.

The managed wind-down having been very substantially completed, the Board considers that the value inherent in the Company’s structure is best maximised through its continued operation. In addition, it believes that a materially better outcome could be achieved in respect of the last remaining real estate asset, a multiplex cinema in Curno, Italy (the "Curno Asset") were the Company to discontinue its current policy of winding-down its portfolio.

The Board is therefore proposing that the Company adopt a new investment policy of active investment in undervalued British securities, and believes that Worsley's experience in this area will provide the opportunity to create superior long-term value for Shareholders.

Worsley Investment Strategy

Worsley's investment strategy allies the taking of influential holdings in smaller British listed companies selling at a deep discount to their intrinsic value (as determined by a comprehensive and robust research process) with the employment of activism as necessary to drive highly favourable outcomes.

Worsley is regulated by the FCA and is authorised to provide investment management and advisory services. Worsley’s principal, Blake Nixon, is a veteran of more than 30 activist campaigns, and has a demonstrated record of producing substantial returns through both listed permanent capital vehicles and unlisted open-ended structures using the strategy.

Curno Asset

Were the Company to retain its exiting strategy of a managed wind-down it would be likely to continue to be regarded as a forced seller of the Curno Asset. By removing the necessity to liquidate the Company’s assets in a short time frame, the Board believes that it ought to be possible to extract a better valuation for the Curno Asset than its current carrying value. The Group plans to retain the Curno Asset until a disposal can be effected at a price which the Board believes properly reflects its prospects.

Adoption of the Proposals

Subject to Shareholder approval, it is proposed that:

1. the New Investment Objective and Policy be adopted; and
2. the Company's name be changed from "AXA Property Trust Limited" to "Worsley Investors Limited"

together the “Proposals”.

The Board believes that the Proposals present an attractive alternative to the existing realisation strategy, in particular because the Board considers that the Proposals will:

• improve prospects for long-term growth in the net asset value of the Company through the implementation of the new investment policy using Worsley's skills and expertise;
• allow the Group to optimise the disposal of the existing Curno Asset over time; and
• avoid the Company incurring costs in connection with the winding-up of its legal structure.

The Proposals will be subject to the approval of Shareholders at an Extraordinary General Meeting. The Board has received indications of support for the change of investment policy from Shareholders representing some 45% of the Company’s issued share capital. Further details regarding each of the Proposals, and a Notice of the Extraordinary General Meeting at which the Resolutions to approve the Proposals will be considered, will be set out in a Circular, which it is expected will be posted to Shareholders before the end of April.

Enquiries:
Blake Nixon
Director
Tel: 02038732288

Northern Trust International Fund Administration Services (Guernsey) Limited
The Company Secretary
Trafalgar Court, Les Banques
St Peter Port
Guernsey
GY1 3QLTel:

01481 745001