Loud voice for KIPT changes

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

Relevant offers

Industries

Fletcher Building slows down on land purchases but remains the enemy of Auckland golfers Truck shop Bestdeals fined over $47,000 for lack of disclosure Ministry of Transport fraudster Joanne Harrison jailed Sam Neill's from Dunedin and doesn't want you to buy Cadbury chocolate - ever again Massive Port Nelson wine warehouse boost for region China's Geely to bid for Malaysian car maker Proton Have businesses pocketed money meant for employees out of work from quake? Rescue after scaffolding collapse at old Panmure Bridge, Auckland Fairfax Media shares placed in trading halt with news expected about Domain Christchurch population steadies after leakage to districts

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