Submission Made to Protect Interests of Investors
Media Release – Macquarie Goodman (NZ) Limited
Submission Made to Protect Interests of Property Trust Investors
Date: 27 September 2006
Macquarie Goodman (NZ) Limited (MGNZ) today made a submission to the Select Committee reviewing the Taxation (Annual Rates, Savings Investment and Miscellaneous) Provisions Bill, regarding the impact of proposed changes to the Bill on property fund investments.
MGNZ manages the NZX-listed Macquarie Goodman Property Trust (MGP), which has assets of approx NZ$1 billion. MGNZ made its submission in support of the Property Council of New Zealand to ensure a level playing field is achieved for all collective investment vehicles.
“MGP has in excess of 6,000 retail, or “mum and dad” investors’ and unless changes are made, they could be inadvertently penalised,” says John Dakin, Chief Executive Officer, MGNZ. “The intention of the Bill is to encourage saving and investment and there are some straightforward changes that will resolve the issues for investors in property trusts.”
MGNZ has filed an extensive written submission to the Select Committee regarding the proposed changes. In its presentation to the Committee today MGNZ provided two alternatives that would resolve issues that directly affect MGP:
1. Allow a listed property trust to
meet the “investment-in” test through its compliance
with NZX rules. Under NZX rules, a listed entity must have
at least 500 shareholders, thereby ensuring that a “widely
held” test is met.
2. Existing cornerstone shareholdings should be “grandfathered” for the purposes of the “investment in” test. Listed property trusts would be amenable to some form of cap or constraint on existing shareholding.
“The role the changes to the Bill can play in encouraging savings and investment in New Zealand is very positive,” says John. “If the Select Committee accepts our proposed changes, investors will be able to make decisions based on the characteristics of the investment, rather than its tax treatment,”