Shareholders of AMP NZ Office Trust this morning voted more than 70% in favour of corporatising its structure and implementing a new management fee structure.The corporatisation will mean it is a company no longer a trust but its underlying business and a
Shareholders of AMP NZ Office Trust this morning voted more than 70% in favour of corporatising its structure and implementing a new management fee structure.
The corporatisation will mean it is a company no longer a trust but its underlying business and assets will be unchanged. It would be considered a Portfolio Investment Entity (PIE).
Fees received by its manager AMP Haumi Management, a joint venture between the Abu Dhabi Investment Authority and AMP Capital Investors will be changing as voted by 81% of investors.
At the moment its management fees are set at 0.65% of the value of its portfolio but under the new scheme it will receive 0.55% of the value up to $1 billion and 0.45% of the value of assets above $1 billion,a nd $0.35% above $1.5 billion.
The exception to this rule is it’s swish but untenanted 21 Queen St building, for which the management agreed some time ago to take a 50% discount on its fees.
It is also eligible for a performance bonus of 0.125% of the company’s market capitalisation paid every quarter.
A new company called AMP NZ Office will be formed. Shares in the trust will be suspended from trading on October 26 to be transferred to the new company.
Chairman Craig Stobo will become a new independent director on the board along with an existing director Graeme Horsley, and Graeme Wong and Don Huse who are both new to AMP NZ Office Trust.
AMP NZ Office Trust owns $1.27 billion of properties including Vodafone on the Quay in Wellington and the AMP Centre in downtown Auckland. Its shares were trading at $0.77 a unit at press time.
