Esplanade Property Fund to delist

The Esplanade Property Fund is intending to put a proposal to shareholders to unlock value by delisting the fund from the Australian market.

The decision of board of Entrust Funds Management, the entity responsible for EPF, to de-list comes after an extensive investigation of alternatives seeking to narrow the discount that has developed over time bewteen the trading price of EPF and its net asset backing.

EFM believes that the size of the discount in recent times has been unwarranted, particularly given the quality of EPF's investment portfolio and its low gearing levels.

The relatively low level of liquidity in trading, together with the compliance costs of maintaining an ASX listing, have also been contributing factors in reaching this decision.

As part of the delisting proposal, EFM intends to establish a redemption facility providing shareholders with the opportunity to redemms units in the fund following the delisting, taking effect at a price which more accurately reflects EFM's net asset backing.

More to come...