Orchard is the flavour of the week

Insiders said yesterday that Brisbane's Cromwell Group had until Friday to make a firm proposal for Orchard, but Orchard's managing director, David Hinde, denied this.

Orchard granted Cromwell an exclusive due diligence period of 30 days, which began last Wednesday. Cromwell aims to conclude the deal by the end of September.

But Taemas Bridge, a private property investment group led by the former Babcock & Brown executive Robert Topfer, has $100 million-plus immediately available and is said to be eager to secure Orchard.

Mr Hinde said the Cromwell proposal would involve a transfer of the management rights of all of Orchard's managed funds with the exceptions of the Essential HealthCare Trust and the Orchard Primary Infrastructure Fund. Both are subject to separate offers now being evaluated by Orchard Funds Management. Mr Hinde said Orchard would issue a statement to investors on its website to clarify the current market speculation.

Cromwell has indicated it will pay shareholders an initial $15 million for Orchard Funds Management.

However, market observers said any move on Orchard Funds Management would require additional capital.

Insiders believe stabilising Orchard's main fund and its associated investments could cost a friendly bidder more than $80 million.

Cromwell's chief executive, Paul Weightman, said the group planned to broaden its base of unlisted funds this year. It is also close to buying Qantas's headquarters at Mascot in a deal valued at about $140 million.