AMP NZ Office Trust (ANZO) is changing its governance structure and fees to make it more attractive to current and future investors and chief executive Rob Lang will leave in June after seeing through the changes.The proposed new corporate structure and g
AMP NZ Office Trust (ANZO) is changing its governance structure and fees to make it more attractive to current and future investors and chief executive Rob Lang will leave in June after seeing through the changes.
The proposed new corporate structure and governance model, which has to be approved by unit holders, separates the interests of ANZO and the manager and creates a management fee structure that incentivises the manager.
"Market conditions have changed markedly in recent years and the proposed changes are the outcome of a strategic review of the business initiated in 2009 to ensure ANZO is appropriately structured and best positioned to maximise its attractiveness to current and future investors," said Craig Stobo, chairman of ANZO's manager, AMP Haumi Management Ltd.
ANZO will have a management contract with AMP Haumi Management Ltd specifying its role, responsibility and remuneration and performance standards and delivery criteria.
There will be a base fee of 0.55 percent for the first $1 billion of investment properties and 0.45 percent thereafter. There will be performance fee of 10 percent of any outperformance over other NZX listed property vehicles, with a cap.
"The proposed changes to the governance and management fee structures represent a significant shift in position and commitment from the manager's point of view, and we believe they will meet or exceed investor and market expectations.
"Notwithstanding this, we are committed to genuine consultation with investors in developing the details of the final proposals that will be put to unit holders for approval, to ensure a smooth transition and the best long-term outcomes for ANZO as an investment vehicle," said Mr. Stobo.
The changes mark the beginning of a new era for ANZO.
Mr Stobo paid tribute to Mr Lang and said an international recruitment process would identify a successor.
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