NZX & MEDIA RELEASE
13 July 2005
MANAGER FURTHER ALIGNS INTERESTS WITH SYLVIA PARK PROJECT
Kiwi Income Properties Limited, the Manager of Kiwi Income Property Trust, announced today that following discussions
with key institutional investors, it has elected to make a fund management fee rebate of up to $4.0 million, and to
undertake Sylvia Park’s retail project management at cost, enhancing the success of the Trust’s Sylvia Park project. The
fund management fee rebate of up to $4.0 million is to the extent that the retail project yield is below 7.5% for the
two years post completion, which is anticipated in mid 2007. The project management fees will continue to be capped at
the current fee of 3% of project cost, and will be verified by the Trust’s auditors.
Chairman of the Manager, Sean Wareing, said that the fee rebate and reduction in project management fees were further
examples of the Manager aligning its interests with those of unit holders.
The fund management fee rebate and reduction in the project management fee is in addition to the significant fee
reduction announced in March, following a review and restructuring of the Manager’s fund management fees. The revised
structure, effective 1 April 2005, comprises a base fee of 0.55% per annum of average gross assets and a performance fee
calculated on unit holder returns above 10% per annum. The total management fee payable, including both the base and
performance fees, is capped at 0.70%per annum of average gross assets, yielding significant cost savings to the Trust
and placing fees at the lower end of base and performance fees charged by New Zealand listed property entities.
As previously advised, the Trust has a number of parties interested in owning a part of Sylvia Park. The Manager will
continue to explore the opportunity for a partner, and should a proposal be presented to the Trust that is fully
acceptable and attractive, and in the best interest of unit holders, the Manager in consultation with the Trustee may
consider a sale of a portion of the development. If the level of the Trust’s ownership of Sylvia Park reduces, the fee
rebate will be adjusted accordingly.
ENDS