Loud voice for KIPT changes

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

Relevant offers

Industries

This is the cheapest broadband will get in New Zealand Spark share buy-back announced NZ terms of trade improve on lower petrol prices Craigs Investment Partners fined $30K for NZX breach Kiwi falls against US dollar ahead of Reserve Bank interest rate review Court action against Ports of Auckland wharf expansion begins Hooters may be coming to NZ Retirement village operator Ryman Healthcare mulls an Australian sharemarket listing Peter Talley knighted for services to business and philanthropy Burger King headquarters on the market

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