Kiwi Income unitholders overwhelmingly approve corporatisation
Kiwi Income Property Trust [NZX: KIP] unitholders have overwhelmingly voted in favour of corporatisation, completing a year-long transformation that saw the property trust taking management in house by buying out Commonwealth Bank of Australia.
A total of 99.9 percent of votes cast were in favour of turning the trust into a company, which is to be called Kiwi Property Group Ltd. Its units will be halted from trading at the close of business to allow them to be redeemed and exchanged for shares in the new company. NZX has already assigned a new ticker for the stock, KPG, which will begin trading on Dec. 22.
The board of Kiwi Property will be made up of the same directors as the board of the current manager of the trust, it said. The company is to have a revamped brand.
"In the past 12 months, our investors have supported us through two major changes to our structure, including the internalisation of our management and, now, corporatisation," said chairman Mark Ford. "These initiatives will create long-term cost savings and investment value."
Kiwi Income's property portfolio is currently valued at $2.1 billion and includes Auckland's Sylvia Park Shopping Centre, LynnMall Shopping Centre and Vero Centre and Wellington's Majestic Centre.
Units of Kiwi Income rose 1.2 percent to $1.25 and have gained 14 percent this year.