Kermadec Property Fund's shareholders have backed a $7 million deal to internalise its management contract.
Despite concern from the New Zealand Shareholders Association about the cost of the deal, and its related party nature, 82% of shareholders voted in favour at a special meeting in Auckland on Wednesday.
Kermadec, which owns five commercial properties worth $100 million, is run by managing director Mark Francis and his brother Chris, an executive director.
It plans to buy the assets of its manager, Augusta Funds Management, costing up to $7 million.
Augusta is owned by the Francis brothers, making them the main beneficiaries of the deal.
