(7 May 2010 – Australia) In an effort to reduce its debt levels, listed group Trinity Limited is selling half of its wholesale funds management business.The group has entered a contract with property funds management player Clarence Property Corporation. Under the deal, Clarence will acquire 50 percent of Trinity Funds Management (TFM) as well as a recently established service trust that provides services to TFM.
The price tag is $4 million, plus 50 percent of the net assets of the business, with a further payment of $1 million contingent on subsequent events.
As a result of the sale, Trinity joint managing director Steve Leigh is to resign as a director from Trinity and take the position of chief executive officer of Trinity Funds Management. Trinity joint managing director Steve Morton will become deputy chairman of Trinity, initially in a full-time capacity – although the group said it would become a part-time role from July.
Craig Bellamy remains chief executive of Trinity Limited. The board of the responsible entity of TFM also remains unchanged, comprised of Geoff McWilliam, Ron Higham, Trevor Gordon and Trinity chairman Brett Heading.
Heading said the proceeds from the sale would assist in reducing the debt facilities the group has in place with the National Australia Bank.