Loud voice for KIPT changes

CATHERINE HARRIS
Last updated 05:00 13/12/2013

Relevant offers

Industries

Oil and gas conference to be held in New Plymouth for first time ever in 2017 Leadership week: Be Accessible invites people to think outside the leadership square New $20m private cancer care facility for Wellington Hamilton-based Pacific Aerospace recognised at industry awards Spark struggles under tsunami of fault reports Mitsubishi recalling 27,000 NZ vehicles Professor Judy McGregor supreme winner of Women in Governance Awards Rising damp a major problem in Wellington houses - Victoria University NZ looking good in a crazy world after Brexit, says Xero boss Rod Drury Intergen named supreme Wellington Gold Award winners

Unitholders in Kiwi Income Property Trust have voted in landslide fashion to internalise the trust's management.

Ninety-nine percent of votes favoured the plan, which required a 75 per cent pass rate to be accepted at the annual meeting in Auckland yesterday.

The move will terminate KIPT's management contract with a subsidiary of the Commonwealth Bank of Australia, for a fee of $70m. However, the trust expects the buyout will save it $8m annually. It will be managed by Kiwi Property Management (NZ), a newly established company controlled by unitholders.

Trust manager chairman Mark Ford said that management would be on a break-even basis.

Unitholders also agreed to increase directors' total fees to $585,000 a year and raise the amount the trust can borrow to 45 per cent of the fund's gross value.

NZX-listed KIPT holds a $2.1 billion portfolio that includes Wellington's Majestic Centre.

Ad Feedback

- BusinessDay

Special offers

Featured Promotions

Sponsored Content