The head of the $1.3 billion Kiwi Income Property Trust has taken a swipe at a rival for criticising the structure of listed property trusts.
Monday, December 13th 2004, 1:29AM
by The Landlord
Kiwi chief executive Angus McNaughton hit back at Capital Properties chief executive and former colleague Chris Gudgeon, saying many companies were worse than trusts because they delivered less to investors.
Kiwi and Capital are locked in a struggle after Kiwi bought 19.9 per cent of Capital without declaring its intentions.
Capital responded by putting up for sale its management company, one of its most valuable assets.
Gudgeon, a former Kiwi executive who was instrumental in leasing the Vero Centre, struck another blow last week.
Issuing the half-year report to shareholders, he promised to avoid the pitfalls inherent in trusts by aligning the interests of Capital's manager with its shareholders.
Property companies with external managers had better corporate governance, he said.
