Rural Property Trust unitholders says keep it going

Friday 29th October 2004

Yesterday's vote was part of a restructuring package put to unitholders five years ago.

The meeting was tipped to be a show down as PricewaterhouseCoopers had suggested in a report that the fund should be wound up over a period of 36 months. It said that the trust had not achieved most of its growth plans, mainly because the units had traded at a substantial discount to net asset value and the trust was not allowed to issue new units at less than 90% of net asset value to finance growth.

However NZRPT chairman Sir Selwyn Cushing who owns nearly half of the trust was in favour of keeping it going.

The motion to keep going was passed with 76.32% of unitholders voting in favour.

Cushing said the positive vote reinforces the view that the trust will continue to provide excellent returns in the future.

The market price of the units has shown an average return of 23% annually over the past five years, out performing a number of other property and agricultural investment vehicles, he said.

Units in the trust have recently sold at up to $1.75, however the asset backing is well over $2.

NZRPT directors said after the meeting that they believe the trust has a diverse portfolio of quality properties which have strong potential for further capital growth in the long term.

It owns 30 farms, mainly in the Hawke's Bay area, and a forest near Ngaruawahia.

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