BREAKING NEWS
One driver dead following truck crash on SH27, 7km south of Matamata ... More soon
Close

Commonwealth Bank sells down KIPT

LAURA WALTERS
Last updated 11:01 16/12/2013

Relevant offers

Industries

Scrap metal prices for Taranaki 'in the doldrums' Spotless Facility Services to pay $15,500 for bullying complaint failures BNZ reports half a billion dollar increase in impaired dairy loans Gym chain Cityfitness launches review to investigate national selfie ban NZ's foreign trust review slammed as 'limited' by Transparency International Huge fee hike approved for Overseas Investment Office Civil and environmental engineering courses come to Waikato John Key says Panama Papers leak a cautionary tale for Kiwi businesses Ford NZ lost in transmission over Australian class action Tesla production, spending rising, 500,000 cars planned in 2018

Commonwealth Bank of Australia (CBA) is reducing its holding in Kiwi Income Property Trust (KIPT) .

The NZX-listed property trust, said in a market announcement this morning that CBA had appointed Goldman Sachs to sell down its holding.

The Australian bank owned about 8.6 per cent of the trust's units through subsidiaries and also held KIPT's management contract.

Last week KIPT unitholders voted overwhelmingly to bring the trust's management back in house.

KIP's units were placed in a trading halt this morning and would not trade for the rest of the day so the sell-down could occur in an "orderly fashion", KIPT said.

The sell-down will terminate CBA's management contract and cost $70m. However, KIPT expects the buyout will save it $8m a year. The trust 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.

KIPT's units last traded at $1.10, 3.9 per cent lower than a year ago.

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

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content