Trust doubles its base

Industrial and office park landlord Macquarie Goodman Property Trust doubled in size yesterday, after unitholders backed a deal to buy $304.3 million worth of properties from an Australian associate.

Trust chief executive John Dakin said Macquarie was headed towards becoming New Zealand's second-largest listed real estate vehicle, owning $551 million worth of properties.

Kiwi Income Property Trust, with $1.2 billion of real estate, is the country's largest listed property trust.

Only three questions were asked at yesterday's meeting at Ellerslie, one from a family trust representative who queried the motives of Australian-listed Macquarie Goodman Group in deciding to sell the $304.3 million properties to the New Zealand trust.

Trust non-executive director Greg Goodman said the intentions were "purist" and although there was speculation of a downturn in the property market, Macquarie in Australia wanted to see a strengthened trust here.

He said the changes would create a more robust investment vehicle.

Unitholders were told their fees for managing the trust would be some of the lowest in the sector.

Macquarie yesterday got approval to introduce a performance management fee and cut its base management fee from 0.7 per cent of assets under $500 million to 0.5 per cent.

Actions approved

The purchase of $304.3 million worth of real estate from Macquarie Goodman Group.

An institutional unit placement, already undertaken, to raise $82.3 million of extra capital. This was completed on March 7 and 8 at $1.09 a unit, but unitholders still had to approve it.

Amendments to the trust's deed so the new management fees could be set.

Approval of changes to the way the New Zealand and Australian Macquarie entities buy and sell properties so they do not need unitholder approval for each deal.
*The four resolutions were voted on a show of hands; all were carried by a majority.