Loud voice for KIPT changes

16:00, Dec 12 2013

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.

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