ABP’s role at real estate firm Corio queried
NETHERLANDS - Dutch pension giant ABP risks being drawn into a row over the management of real estate firm Corio, in which it has a 39% stake.
Former Corio board members have in the past few days urged the current board to replace the management.
Former CIO John van Leeuwen said unrest at the top only leads to a disastrous performance of the overall company.
And former chairman Thom Wernink stated that the current strategy of the company is not feasible, saying: "In the past few years it has become obvious that the expansion strategy of Corio has not been successful, with the exception of a major acquisition in Turkey."
Until now, there's been no reaction by Corio management or the main shareholders. The former board members are questioning the present position of ABP.
Wernink said: "ABP should take a more active stand towards the management." Another point of criticism is the fact that the management does not comply with a normal decision-making process regarding investments.
Although Corio's share price has increased by 25% in the last five years, its performance lags rivals such as Rodamco Europe, Eurocommercial Properties and VastNed Retail.
Corio holds at present a real estate portfolio of €5bn in European shopping centres.