Kiwi Income property Trust welcomes cnz decision

4 April 2005

Kiwi Income property Trust welcomes cnz decision

Kiwi Income Property Trust (the Trust) today welcomed the decision announced by Capital Properties New Zealand Limited (CNZ) to abandon its plan to sell the management rights to its property portfolio.

The Trust, which holds 19.4% of the CNZ shares on issue, had pressured CNZ to seek shareholder approval for any sale of the management rights. The Trust firmly believes that the sale was an initiative that was unlikely to deliver additional value to shareholders.

The Trust will be seeking confirmation from CNZ that shareholder approval will be sought should a sale of the management rights be considered at any stage in the future. If this confirmation is received then the Trust will review its request for a special shareholder meeting.

Chief Executive of the Manager of the Trust, Angus McNaughton, said that the Trust’s view throughout the process has been that the proposed disposal of management rights represented a sudden and radical departure from CNZ’s core structure and strategy, and as such should require shareholder approval.

“While some shareholders may have preferred to receive a one-off payment in exchange for reduced future dividends and a lower share price, others may not have.

“CNZ’s change of heart would suggest that the proposal was not likely to be genuinely beneficial to CNZ shareholders. Had that not been the case no doubt the CNZ Board would have been happy to progress the sale process.”

ENDS

About Kiwi Income Property Trust

Kiwi Income Property Trust’s objective is to maximise 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 15th by market capitalisation on the NZSX50.

The Trust has a portfolio of 20 properties and has total assets of $1.2bn.

The Trust’s key office assets are located in CBD locations and comprise:
Vero Centre Auckland
National Bank Centre Auckland
Vodafone House Auckland
AUT Faculty of Arts Building Auckland
Majestic Centre Wellington
Unisys House Wellington
BP House Wellington
NGC Building Wellington
PricewaterhouseCoopers Centre Christchurch

The Trust’s key retail assets comprise:
Northlands Shopping Centre Christchurch
Centre Place Shopping Centre Hamilton
Downtown Plaza Shopping Centre Hamilton
North City Shopping Centre Porirua
The Plaza Shopping Centre Palmerston North

Kiwi Income Property Trust’s website address is www.kipt.co.nz

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