Colonial buys NZ trust

Colonial First State Property, a wholly-owned subsidiary of Commonwealth Bank of Australia, has bought the Kiwi Income Property Trust's management company.

The acquisition of Kiwi Income Properties Limited will see the management of New Zealand's largest listed property trust, the Kiwi Income Property Trust, join the Australian based fund manager upon completion of the sale at the end of March 2002. The acquisition is subject to Overseas Investment Commission approval.

Colonial First State Property's general manager, Geoff McWilliam, says the purchase reinforced the Commonwealth Bank Group's commitment to New Zealand.

"Colonial First State Property already has a significant commitment to New Zealand via its interests in the management of two listed property trusts, the Colonial First State Property Trust and Newmarket Property Trust."

These two listed trusts have combined total gross assets of $325 million.

"We were attracted to Kiwi Income Properties because of its strong management team and leading market position.

"These attributes combined with the expertise of our Australian business, will provide a broad skill base in property funds management that will benefit investors in all funds managed by the Group in New Zealand."

The Commonwealth Bank Group also has a strong commitment to New Zealand through its ownership of the ASB Bank and Sovereign. The Colonial First State Group also has a wholesale funds management operation.

Kiwi Income Properties director and joint managing director, Ross Green says that "Colonial First State Property's involvement is a major step forward for Kiwi Income Properties and the investors in the trust as it resolves the long term ownership of the management of the trust."

Kiwi Income Properties Ltd was previously half-owned by Lend Lease, 25 percent by interests associated with Ross Green and Richard Didsbury, and 25 percent by Canadian interests.

Following this deal Didsbury and Green will step down as joint managing directors. However, they will continue to act as consultants to the group.

Green will remain a director of the company, while current Kiwi Income Properties general manager, Angus McNaughton, will become the new chief executive.

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