Diversified NZ Property Trust
Diversified NZ Property Trust (Diversified), established in its current format in April 2016, owns $538 million (as at 31 March 2018) of retail shopping centre property, and is an unlisted property trust managed by Stride. It has issued units under a trust deed, with the majority of the units being held by two Australian based institutional superannuation funds and 2% being held by Stride. The four properties owned by Diversified are Queensgate Shopping Centre and Johnsonville Shopping Centre (owned 50:50 by Diversified and Stride) in Wellington, Remarkables Park Town Centre in Queenstown and Chartwell Shopping Centre in Hamilton.
Subject to the availability of resources and restrictions agreed with Diversified, Stride may look to manage other property entities and/or their portfolios if and when suitable opportunities arise for consideration by the Board. Stride has agreed with Diversified that it will seek its approval before establishing or raising capital for any unlisted fund having similar investment objectives to Diversified.
Governance of Diversified
An Investment Committee comprised of one member nominated by Stride Investment Management Limited and one independent member is tasked with overseeing the investment process and investment decisions for Diversified and monitoring and managing its investment activities, and undertaking periodic reviews of the manager’s performance. In addition to the Investment Committee, there exists a Member Representative Committee, which consists of three members, one appointed by each investor for a three year term. The role of the Member Representative Committee is to make determinations in relation to a transaction involving a related party conflict of interest for Diversified or Stride; consult with, and provide advice to, the Investment Committee on whether to approve investment in an opportunity offered to Diversified.
Investore Property Limited
Investore Property Limited (Investore) is a commercial property ownership business that has been established to invest in quality Large Format Retail property assets. Investore is a Listed Portfolio Investment Entity (PIE). Shares in Investore began trading on the NZX Main Board on 12 July 2016.
As at 31 March 2018 Investore owns 40 large format retail properties, including supermarkets (Countdown and New World), and general and DIY stores (Bunnings, The Warehouse and Animates). Investore’s portfolio is valued at $738 million as at 31 March 2018.
Investore’s investment strategy is focused on “large format retail” property assets. Large format retail means a single-storey or low level property comprising retail shops and outlets and car parking areas with more than 50% of the property generally occupied by, and more than 50% of the rental generally provided by, a single major tenant or a limited number of major tenants under net leases.
Stride owns a 19.9% cornerstone interest in Investore, and manages the assets of Investore by way of a management agreement, for which Stride receives management fees.
Governance of Investore
Investore is governed by a Board of Directors, which is comprised of three independent directors and two directors appointed by Stride Investment Management Limited. Being listed, Investore is subject to the NZX listing rules, and reports on compliance with the NZX Corporate Governance Code.
More information regarding Investore (including its latest annual report) can be found at www.investoreproperty.co.nz
As the manager of both its own activities and the activities of Diversified and Investore, Stride may, from time to time, have a conflict of interest in acting in both capacities. The Board of Stride has adopted a Conflicts Policy that provides guidance to Directors and Stride employees on when a conflict of interest may arise and sets out procedures for managing conflicts of interest. This Conflicts Policy can be found in the Corporate Governance section of this website.
In addition, as Stride Investment Management Limited is managing more than one investment entity, it has adopted an Acquisition and Leasing Protocol, which is intended to assist Stride management and employees in making decisions in the event of any conflict between the interests of Stride Property Limited and the other management funds, Investore and Diversified.