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Kiwi Income Property Trust says it's full steam ahead

By Chris Hutching

Friday 22nd August 2003

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Kiwi Income Property Trust has never been in better heart, chief executive Angus McNaughton told about 200 shareholders at the annual meeting in Christchurch at Northlands Shopping Centre. Northlands is nearing completion of a $91 million building rebuilding and expansion programme including over 100 specialty shops. Mr McNaughton said only four retail spaces remained to be leased.

Between 80-90% of the leases contain clauses providing for annual rental increases of 3-5% to lock in future earnings and distributions to shareholders, he said.

Mr McNaughton spoke about other initiatives across the KIP portfolio that would maximise rentals and efficiencies.

The company is seeking strategic partners for its next major development ­ 24ha at Auckland's Sylvia Park ­ estimated to require investment of about $500 million (KIP's total assets are $911 million with borrowings of $200 million).

"We're being very cautious about this because we're mindful it's probably one of the largest blocks available in Australasia in such close proximity to a major city. It's beyond the financial risk of this trust."

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