According to Kiwi Income Property Trust, in the coming years, Auckland's and Wellington's office markets will experience pressure because vacancy rates have been increased by new buildings and they are exerting pressure on rents.

The income property trust of Kiwi that has left behind the index of NZX 50 this year, will purchase back up to 20 million of its units in the next 12 months, as  excise changes and the instability of market weigh on their price.

The property investor said in his statement that the on-market trade will initiate on June 29 and run through until June 28 next year.

According to Kiwi Income Property Trust, changes of tax in the Government's budget have abridged the prosperity of investors in listed property trusts, many of whom are retirees. The trust fell 1.1% to 92 cents.

The kiwi might drop further after reports and later Government officials denied and recommended that Spain was approaching a fiscal bailout following the diverse data from the US.

Investors in New Zealand's largest listed property trust will be getting 7.5 cents per unit full year cash distribution, based on distributable profit of $61.1m. The amount is marginally better compared to the last year. Even though it recorded a 12.4 million after tax loss it will still give payouts to unit holders due to asset sales and capital raising efforts to lower its debt ratio.

It has been learnt that a new lease agreement has been reached by Kiwi Income Property Trust with Vero Insurance for around a quarter of the trust's flagship office asset, the Vero Centre in Auckland.

It was today confirmed by Kiwi Income that the nine-year lease was for 7-1/2 levels, about 9600sq m, and included naming rights, storage areas and associated car parking spaces as well as the office areas.

The largest tenant of the building since its completion in December 1999 had been Vero, which acquired space over 9-1/2 levels.