Tainui-owned MDC Investments has ploughed a further $2 million into buying units in the New Zealand Rural Property Trust (NZRPT).
Originally MDC spent $3 million in March buying units in the trust which were up for redemption
(see earlier story). Since that offer was made it has nearly doubled its holding and now has an 11 per cent stake in the unlisted trust.
MDC chief executive Waari Ward-Holmes says MDC is comfortable with its holding and has no intentions of increasing its stake.
He says MDC bought the units as it believed NZRPT is a good investment, and it is interested in the trust's Ngaruawahia forest which is in the Tainui region.
MDC's arrival on the unit register is a welcome boost for the trust's manager which is currently planning to put a proposal before unitholders which would freeze the fund for five years.
Ward-Holmes says MDC supports this move, however some high-profile financial planners have, earlier, expressed their disapproval for the scheme and have suggested the manager be replaced.
Meanwhile, NZRPT chief executive Tim Ryan says the upcoming special meeting to vote on the closure proposal has been delayed.
The meeting, which was expected to be held in the middle of this month, is now likely to be held next month.
Ryan says the manager and the trustee have jointly commissioned an independent appraisal of the proposal from PriceWaterhouoseCoopers.
The trust has recently sold a deer and arable farm in the South Island for $1.25 million. Freezing the farms for five years
Knives out for the manager
Tainui-owned MDC Investments has ploughed a further $2 million into buying units in the New Zealand Rural Property Trust (NZRPT).