Successful Completion Of Institutional Placement

NZX & MEDIA RELEASE

2 April 2009

Not for distribution in the United States or to U.S. persons

Successful Completion Of Kiwi Income Property Trust $50 Million Institutional Placement

Kiwi Income Property Trust today announced the successful completion of a $50 million institutional placement [Note 1], of approximately 56.9 million ordinary units at a price of 87.9 cents per unit. This reflects an 8.4% discount to the closing price of units on 31 March 2009, the day prior to the placement.

The proceeds of the equity raising will be used to reduce debt and further strengthen the financial position of the Trust. Prior to the placement, bank debt represented approximately 33% of total assets and the effect of the institutional placement and recent asset sales announced would be to reduce this gearing level to approximately 29%.

Chris Gudgeon, Chief Executive of Kiwi Income Properties Limited, said, "We are pleased the placement closed well oversubscribed with strong support received from existing domestic and international investors as well as a number of new investors to the register."

Darren Steinberg, Head of Listed Property, Colonial First State Global Asset Management said: "The support we have received for the placement reflects our view of the importance of maintaining a strong balance sheet and financial flexibility, for the benefit of all unit holders."

Settlement of the new units issued under the placement will occur on 8 April 2009. The placement units will rank equally with existing Kiwi Income Property Trust units.

Goldman Sachs JBWere was the lead manager, placement agent, bookrunner and underwriter for the placement.

[Note 1]: This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to any U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended ("Securities Act")). Securities may not be offered in the United States, or to any account or benefit of, any U.S. persons, unless the securities have been registered under the Securities Act or an exemption from registration is available. The units, the subject of the placement, have not and will not be registered under the Securities Act.

ENDS

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 10 Index.

The total value of the Trust's property portfolio is $1.91 billion. Assets include:

Key Retail Assets
Sylvia Park Shopping Centre Auckland
Centre Place Shopping Centre Hamilton
Downtown Plaza 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
21 Pitt Street Auckland
The Majestic Centre Wellington
BP House Wellington
Unisys House Wellington
44 The Terrace Wellington
50 The Terrace Wellington
PricewaterhouseCoopers Centre Christchurch

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

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