![Avoca Investment Management's John Campbell will reject 360 Capital's proposal.](http://web.archive.org./web/20170716115239/http://www.afr.com/content/dam/images/g/x/b/m/v/7/image.related.afrArticleLead.620x350.gxat3m.png/1500173856117.jpg)
One of the major investors in the $200 million listed Asia Pacific Data Centre Group (APDC) will reject an attempt by Tony Pitt's acquisitive 360 Capital Group to replace the management of the listed data centre landlord.
The managing director of Bennelong Funds Management's boutique Avoca Investment Management, John Campbell, is the first of the major security holders in the data centre landlord to speak publicly about Mr Pitt's proposal to take control of the manager at a meeting later this month.
"Frankly we see very little merit in [Mr Pitt's] proposal," Mr Campbell told The Australian Financial Review, "We struggle to see how any value could be added."
Last month Mr Pitt's 360 Capital took a 19.9 per cent stake in the fund that owns three facilities in Sydney, Melbourne and Perth – all leased to listed operator NEXTDC.
Mr Pitt argued that APDC's balance sheet was "very lazy" and that securityholders needed to back his proposal to change management and expand the business' acquisitions.
"As you know we are fairly active with our investments. We think we can create value," Mr Pitt said.
However, Avoca Investment Management's John Campbell, who oversees a 6 per cent shareholding in the data centre landlord, said any new management could damage the value of the current portfolio.
"It is hard to see what value they could add, but there is significant risk that introducing an unproven external manager who would be financially incentivised to grow the asset base would lead to material diminution in the overall quality of the asset base over time," Mr Campbell said.
"The current board has been extremely mindful of this high-quality asset base and whilst they have investigated growth opportunities, have not just grown for the sake of it."
"In our opinion, the slightly elevated internal corporate cost base is a small price to pay to ensure good governance."
Mr Campbell said the current structure had served unitholders well, having outperformed the A-REIT index.
He also said it was "exactly the wrong time to consider such a proposal when a number of external parties are running the ruler over the fund."
Further to Avoca's stake, APN Property Group also has a 4 per cent stake in the data centre landlord. It is not known how APN will vote in the upcoming meeting, however Mr Pitt challenged APN Property Group in his attempt earlier this year to take control of the listed Industria REIT which APN manages.
Last week, the board of the $200 million listed Asia Pacific Data Centre Group (APDC) told its security holders to reject Mr Pitt's proposal.