2 Apr 2009

Property trust raises $50m

2:05 pm on 2 April 2009

Kiwi Income Property Trust has also raised $50 million from institutional investors in a share placement.

The trust says the proceeds of the capital raising will be used to reduce debt and strengthen its financial position.

It says the offer received strong support from existing local and international investors, as well as new investors.

The Trust has also sold $38 million worth of assets, including BP House in Wellington earlier this week.

As with other property investors, the value of the Trust's portfolio has fallen due to the effects of the financial crisis and recession, shedding 10% in the year to March.