Investor ING expects up to half of the country's eight listed property landlords will manage their own portfolios in the next five years.
Last week, AMP New Zealand Office Trust outlined changes to the way it will pay its manager, in response to criticism the current structure had encouraged an acquisition that had cost investors.
The Trust will switch from calculating the management fee from one based on the value of assets, to a lower base fee plus a performance component benchmarked against other listed property landlords.
ING investment manager Craig Tyson says he would still like to see a lower base fee, but he says it's a move in the right direction.
But Mr Tyson says ideally, the trust should manage its own $1.4 billion portfolio.
The trust will also have a new board of mainly independent directors, of which one will also be the chair.
The new management fee structure will set a base fee of 0.55% for the first $1 billion of investment properties, dropping to 0.45% above that.
The trust will now consult with investors about the proposed changes.
