Commonwealth Bank of Australia, the biggest lender by market value across the Tasman, plans to sell down its 8.6 percent stake in Kiwi Income Property Trust [NZX: KIP] after ceding the management contract for $70.5 million.
The Australian bank has hired Goldman Sachs to sell down its units in a placement today, and trading in the local property investor has been halted to let that go ahead. At the last trading price of $1.10, CBA's stake was worth about $95.7 million.
Investors in Kiwi Income last week approved internalising the contract in a near unanimous vote, settling the deal the following day. It was funded through the property trust's internal debt facilities, which increased by $25 million to $875 million.
CBA floated the internalisation in July before settling on a deal last month.