ASX-listed property group Trinity has responded to institutional investor unrest by appointing Brisbane lawyer Chris Morton as MD and McCullough Robertson partner Brett Heading as chairman of the board.

Last week, Morton invested A$1.3m for a 7% stake in the company that is trying to retain control of it’s A$800m funds management loan. Heading and Morton will be meeting with major shareholders and the Investors Advisory Board (IAB) this week to try and persuade them to abandon plans to put the funds to public tender. Late last month, the IAB voted to remove Trinity as fund manager but a further vote is necessary before the public tender becomes inevitable. Trinity's new management team will want to avoid that at all costs since it is unlikely the group would win a public tender.

“What I would like to stress is that the Board is taking decisive action to address governance concerns in Trinity and the funds management operations and in particular to address concerns of major investors in those operations,” he said.

Morton has a strong funds management background having founded Property Funds Australia, which controlled the A$700m PFA Diversified Property Trust. PFA was acquired by Mirvac in October 2007.

Morton will not receive a sign on fee or termination payment and will be paid for the first three months at the equivalent rate of a non-executive director of A$65,000 per year after which salary negotiations will take place. Morton will receive a grant of options to acquire 4.75m stapled securities at an exercise price of 18 cents. These options will be escrowed until 12 months after he starts his contract and will expire at the end of the 2014 financial year.

As part of the reshuffle Sydney lawyer Tony Hartnell will step down as non-executive director.