INDEPENDENT NEWS

Unit Holders Approve Debt Threshold Increase

Published: Fri 28 Jan 2005 12:13 AM
27 January 2005
Unit Holders Approve Debt Threshold Increase
At the Extraordinary General Meeting of Kiwi Income Property Trust held in Auckland today, unit holders approved the resolution set out in the Notice of Meeting dated 5 January 2005. The extraordinary resolution amends the Trust Deed so that the limit on money borrowed is increased from 35% to 40% of the gross value of the Trust Fund.
Chief Executive of the Manager of the Trust, Angus McNaughton, said it was pleasing to have received strong support for the resolution from unit holders, with over 80% voting in favour.
"The additional debt capacity has the potential to deliver enhanced unit holder returns, both through providing the Trust with greater flexibility to pursue added value opportunities as they arise, and through lowering the Trust's cost of capital.
"The higher proportion of debt in the funding mix will not alter the stable, low-risk profile of the Trust, and the debt threshold remains at the lower end of the range for New Zealand listed property entities", said Mr McNaughton.
ENDS

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