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Kiwi Income to buy back up to 20m units

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, June 23 NZPA - Kiwi Income Property Trust is to buy back up to 20 million of its units in the next 12 months.

The buy-back was announced today by trust manager Kiwi Income Properties Ltd, which is wholly owned by Colonial First State Global Asset Management.

Colonial head of property Darren Steinberg said the trust manager had determined there may be opportunities for the trust to buy units at prices which would enhance value for unit holders.

That was due to volatility in global financial markets and the adverse impact of recently announced changes in tax legislation, Mr Steinberg said.

Chris Gudgeon, chief executive of the manager said the buy-back would be funded from existing committed bank debt facilities. Units bought in the buy-back would be cancelled.

The value of Kiwi Income's portfolio is put at $1.85 billion. Among its assets are several shopping centres, including Sylvia Park in Auckland, and offices in Auckland, Wellington and Christchurch.

Trust units were up 2c in early trading to 93c, having ranged between $1.13 and 88c in the past year.

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