Loud voice for KIPT changes
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.