The $70.7 million New Zealand Rural Property Trust (NZRPT) has survived a wind-up threat, and is now looking to get on with business and will try to attract new investors into the fund.
A group of unitholders sought to have the fund wound-up citing concerns about NZRPT's structure, level of management fees and its poor recent performance.
However, unitholders voted four to one against the wind-up proposal at a special meeting in Wellington on Wednesday.
Alex Paterson, who headed the group of rebel unitholders, says he is disappointed with the result.
Yet he felt that a strong message has been sent to the management company regarding unitholder unhappiness.
"With less than 26 million votes cast in support of the management company, being less than half the total number of units on issue, this must be a signal to the trustee and the management company that there is considerable unhappiness amongst unitholders," he says.
At the meeting the management company, New Zealand Rural Property Management, outlined plans for future growth and said it wanted to attract new investors into the fund.
The first resolution put to the meeting - that the trust deed be amended allowing for a committee of inspection to be appointed in the event of a wind-up was lost by with 21 per cent voting for it and 79 per cent against.
Similarly 80 per cent of those present at the meeting voted against winding up the trust.
"It would seem that the result of today's meeting leaves unitholders who remain dissatisfied with little option but to offer their units back (to the manager) for redemption," Paterson says. The trust's future plans Meeting adjourned Structure flawed Trust under wind-up threat Suspension lifted
The $70.7 million New Zealand Rural Property Trust (NZRPT) has survived a wind-up threat, and is now looking to get on with business and will try to attract new investors into the fund.