Trust Deed Changes
19 December 2012
Trust Deed Changes
Kiwi Income Properties Limited, as Manager, and New Zealand Permanent Trustees, as Trustee, of Kiwi Income Property Trust (KIPT) have made a number of technical changes to KIPT’s Trust Deed consistent with the Securities Amendment Regulations (No. 2) 2011 (the Regulations) which were introduced late last year, and recent changes to the Unit Trusts Act 1960 (the Act).
The Regulations prescribe further clauses that (a) must be included in, and (b) are deemed to be contained in, all trust deeds required for the purposes of the Securities Act 1978 and relating to debt securities. While the Regulations do not apply to KIPT, the Manager and Trustee have determined, in the interests of best practice, to make appropriate changes to the Trust Deed as if the Regulations did apply.
In addition, changes to the Act have come into force allowing for the provision of financial information and summaries of Trust Deed amendments to be provided to unit holders by electronic means.
The specific amendments that have been made to the Trust Deed are summarised as follows:
• A duty is now imposed on the Trustee to determine whether a breach of the Trust Deed has occurred, and to do all things that it is empowered to do to remedy the breach. The existing duty for the Manager to notify the Trustee as soon as possible of a breach has been heightened to require notification where the Manager has reasonable grounds to believe that a breach may have occurred.
• The Manager is now required to provide any reports to the Trustee that the Trustee requires within the period of time specified by the Trustee (so long as it is reasonable). The reports may be about any matter relevant to the performance of the Trustee's duties and also may include forward-looking reports. In all other respects, the reports will be provided in the same manner as certificates are currently provided under the Trust Deed.
• The list of experts or other advisers from which the Trustee may obtain advice is extended to include an auditor, investigating accountant and actuary, and the Trust
Deed will direct that the fees of all listed experts or advisers engaged for certain limited reasons are to be paid directly out of the Trust Fund.
• The Manager is now permitted to provide summaries of Trust Deed amendments to unit holders electronically in the manner permitted by the NZSX Listing Rules and the Act.
• Various other minor and technical amendments such as specifying the corporate form of the Trustee and the Manager.
The changes have been
made by the Manager and Trustee in accordance with the
amendment provisions of the Trust Deed. The changes have
also been reviewed and approved by NZX in accordance with
the NZSX Listing Rules.
A copy of the amended and restated Trust Deed is available on the Trust's website: www.kipt.co.nz/corporate-governance
About Kiwi Income Property Trust
Kiwi Income Property Trust’s objective is to optimise returns for its Unit Holders through the careful acquisition, development and professional management of its property portfolio. The Trust is listed on the New Zealand Stock Exchange and is ranked within the top 15 on the NZX 50 Index, and is a member of the NZX 15 Index.
The total value of the Trust’s property portfolio is $2.01 billion. Assets include:
Key Retail Assets
Sylvia Park Shopping Centre Auckland
LynnMall Shopping Centre Auckland
Centre Place Shopping Centre Hamilton
The Plaza Shopping Centre Palmerston North
North City Shopping Centre Porirua
Northlands Shopping Centre Christchurch
Key Office Assets
Vero Centre Auckland
National Bank Centre Auckland
The Majestic Centre Wellington
Unisys House Wellington
44 The Terrace Wellington
Kiwi Income Property Trust’s website address is kipt.co.nz