FRANKFURT, May 26 (Reuters) - Patrizia Immobilien shareholder Union Investment demanded that the German real estate company pay out proceeds from an asset sale to shareholders as a special dividend and criticised current management's strategy.
"Patrizia's management promised to use the roughly 250 million euros ($279.45 million) of proceeds from the Harald (portfolio) sale for further opportunistic transactions. That has not happened," Union fund manager Michael Muders told Reuters.
"We demand that the company pay out 300 million euros as a special dividend. That would be around 3.50 euros per share," he said.
Union holds more than 4 percent of shares in Patrizia, putting it among the group's biggest investors.
Patrizia finance chief Karim Bohn meanwhile rebuffed Muders' demand.
"Paying out a large part of our equity capital would hurt the company's development. That money is better invested in growth," he told Reuters.
$1 = 0.8946 euros Reporting by Alexander Huebner; Writing by Maria Sheahan; Editing by Tom Sims