Well, good morning. Morena. Tena koutou, tena koutou, tena koutou katoa. Welcome, everyone, to Precinct Properties' 2023 Annual Meeting of Shareholders. I'm Craig Stobo, independent director and chair. It really is great to see so many of you in attendance today at our Generator Commercial Bay Meeting and Event Suite. Just a few housekeeping notes and health and safety practices for the use of this venue before we get started. The bathrooms can be found out the black door at the back of the room and through the glass doors to the left. The Commercial Bay bathrooms can also be used and are located through the brick panel doors and to the right, black panel doors and to the right. In the unlikely event of emergency, the nearest fire evacuation route is through the door next to the toilets.
Please follow the instructions of Generator staff and fire wardens in the event of an evacuation. The meeting point is outside Downtown Carpark, located by turning right once you exit the PwC Tower. We have several Precinct and Generator event staff present here today, so you should... Should you need any assistance, please put your hand up. Similar to previous years, today's meeting has a hybrid format, so in addition to the in-person meeting being held, shareholders, proxies, and guests can attend the meeting online via the Computershare online meeting platform. Shareholders and proxies attending virtually also have the ability to ask questions and submit votes online. For online participants, if you have a question to submit during the live meeting, please select the Q&A tab on the right half of your screen anytime. Type your question into the field and press Send.
Your question will be immediately submitted. Should you require any assistance, one of the Computershare team will be able to assist you via the chat function and reply to your query. Alternatively, you can call Computershare on 0800 650 034. Please note that while you can submit questions from now on, I will not address them until the relevant time in the meeting, which is at the end of each of the presentations. Please also note that your question may be moderated, or if we receive multiple questions on one topic, amalgamate them together. While we will try to get through as many questions as possible, we do apologize in advance for any questions submitted online that we are unable to answer due to time constraints. In this case, questions will be followed up by email after the meeting.
Voting today will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will shortly open the voting for all resolutions. For those attending virtually, if you are eligible to vote at this meeting, you will be able to cast your vote online under the Vote tab. Once the voting is opened, the resolutions will allow votes to be submitted. To vote, simply select your voting direction from the options shown on the screen. You can vote for all resolutions at once or by each resolution. Your vote has been cast when the tick appears. To change your vote, simply select Change Your Vote. You have the ability to change your vote up until the time I declare voting closed. I now declare voting open on all items of business.
For those physically attending today, we do hope you will stay and join us for some light refreshments after the meeting's conclusion. I'd now like to introduce you to the members of the board and executive team joining us today. We have Anne Urlwin, Graeme Wong, Chris Meads, Nicola Greer, Mark Tume, Chris Judd, Scott Pritchard, George Crawford, and Richard Hilder. We also have Alanna Barron, who joined Precinct through the Future Director Program, in an observer capacity. Also present with us are representatives from our auditors, Ernst & Young, our tax advisors, KPMG, legal advisors, Chapman Tripp, and our registrar, of course, Computershare. Now, moving to the agenda of today's meeting. We'll begin with reviewing the performance and activity of Precinct over the last financial year. Following the conclusion of that presentation, we'll then take any questions you may have.
We will start with any in-person questions before moving to any online questions. We welcome any feedback, and we'll consider any other matters that may properly be brought before the meeting today. The meeting will then proceed to the formal business, where we have six resolutions to consider and have been put forward for shareholder approval today. There are four resolutions for Precinct Properties New Zealand Limited, including one special resolution, and two resolutions for Precinct Properties Investments Limited, which also includes one special resolution. In summary, and detailed in the notice of meeting sent to shareholders last month, resolutions today will consider the election of Chris Meads as an independent director, propose changes to director remuneration, fixing the remuneration of Ernst & Young as auditor for the ensuing year, and minor amendments to the constitution for each of Precinct Properties New Zealand Limited and Precinct Properties Investments Limited.
As you will all be aware, this is the first annual meeting of shareholders since Precinct moved to a stapled company structure. Receiving both shareholder and board approvals early this year demonstrates the support for our business and for Precinct to continue to execute its long-term strategy while retaining the benefits of the portfolio investment, or PIE regime. Before we move to some of the highlights this year, I'd like to give a brief update on board changes, which have resulted from the progress we have made across our succession planning. I would also like to provide a bit more detail on resolution two, which considers proposed changes to director remuneration. As previously announced, following the conclusion of my current term, I'll be stepping down today as chair and independent director of Precinct, with Anne Urlwin to replace me as chair of the board.
The People and Performance Committee agreed that Anne is the best replacement for the chair, and believe Anne has the right skills and experience to ensure a seamless transition and handover. Since her appointment to the Precinct Board in 2019, Anne has been chair of the Audit and Risk Committee and has made a significant contribution to Precinct's governance regime.... At the end of the presentation, after the shareholder questions and answer session, I will invite Anne up to say a few words in her capacity as incoming chair. We're also delighted to have recently appointed Chris Meads as an independent director. Chris is an experienced professional and has worked in banking and funds management across Asia Pacific, including more recently as a role as Chief Investment Officer of Pantheon Ventures, based in Hong Kong.
Chris will also address you later today and provide a bit more detail on his background before voting on his election. As I mentioned earlier in our introductions, Alana Barron joins Precinct as its first future director for a one-year term starting on 13th of November 2023. That is yesterday. Alana is a capital markets professional with 20 years experience in New Zealand, Australia, Hong Kong, and United States. Welcome, Alana. Administered by the Institute of Directors, the Future Directors program is designed to help identify and grow the next generation of directors in New Zealand, including recognizing talented executives who are interested in developing governance skills. We are pleased to join this program as part of our commitment to helping ensure New Zealand has a greater pool of governance talent from which to draw from. Moving to the proposed changes to directors' remuneration.
As you will recall, the board last proposed an increase in director remuneration in 2021. Since then, the regulatory landscape has continued to change. There is increased regulatory risk and obligations, resulting in increased demand on directors' time and broadened scope of responsibilities. In line with Precinct's policy to engage in external review of director remuneration every two years, the company engaged independent advisors, PwC, to provide remuneration benchmark data in considering the proposed changes to director remuneration in Resolution two. Following this review, the Precinct board reviewed the benchmark data and, based on a comparison of the Precinct directors market, considered the proposed increases to the director remuneration as appropriate, fair, and reflective of market conditions.
The board considers that alignment of directors' fees to market is important in order for Precinct to be able to continue to attract and retain high-performing directors, whose skills and experience are well suited to our requirements. Ensuring an effective governance structure to oversee Precinct's long-term strategy on behalf of you, our shareholders, is an ongoing priority. Moving now to our 2023 highlights. The last financial year has seen Precinct successfully advance a number of transactions. These transactions have further reinforced the quality of our business and the leading position we hold in our markets. Notably, the business has achieved high occupancy of 99% across its portfolio, with Precinct's 2023 financial year result being underpinned by significant leasing and market rental growth achieved during the period.
This has resulted in net property income of NZD 130.2 million for the year, which contributed to net operating income before tax of NZD 102.1 million, a yearon-year increase of 7.1%. Key strategic initiatives included NZD 1.6 billion of capital partnerships established, which Scott will provide more detail on later in the presentation. In addition, Precinct has settled NZD 680 million of asset sales, which includes 40 and 44 Bowen Street, and more recently, the issue of NZD 150 million of subordinated convertible notes. The notes have provided Precinct both strategic and capital management benefits. It has further strengthened our balance sheet and allows Precinct to advance our partnership strategy. Precinct's active approach to both asset and capital management, as well as its third-party capital strategy, is expected to support Precinct's outlook.
Before I declare the first quarter dividends for financial year 2024 and hand over to Scott, I would like to share the progress we continue to make across our ESG, that is, environment, social, and governance responses. During the year, Precinct has progressed strategies to reduce our negative impacts and scale positive impacts informed by our material topics, in particular, climate change. Precinct's commitment to the World Green Building Council Net Zero Carbon Buildings Commitment will see us achieve net zero carbon emissions for all buildings under our direct operational product control by 2030. Precinct has offset construction-related emissions for several years now and will continue to, to procure high-quality, verified offsets to help us meet our net zero targets. However, we acknowledge that the priority must be on decarbonizing our activities through the sustainable design of buildings, products, processes, and supply chains.
Another key area of focus for the ESG committee over the last year has been preparing Precinct for compliance with the External Reporting Board (XRB), Aotearoa, New Zealand Climate Standards in Financial Year 2024. Precinct has voluntarily prepared interim climate-related disclosures in this year's annual report to support transparency. Towards compliance with XRB's NZ CS 1 standards, Precinct will apply the full CS 1 standard in its Financial Year 2024 annual report. Precinct continues to perform well across its ESG performance benchmarks. As previously announced with our full-year results, Precinct achieved a Global Real Estate Sustainability Benchmark, or GRESB, score during the year of 82, which was above the global average of 74. Today, we're extremely proud to share our most recent 2023 GRESB result. Precinct improved its score to 86, which is well above the current global average of 75.
This is a great result and reflects the continued progress Precinct is making across our ESG targets and, of course, the significant amount of work undertaken by the entire Precinct team to achieve this score. Precinct has also validated its Toitū CarbonZero certification for the year, and again, participated in the Carbon Disclosure Project, CDP, with results due in the coming months. Now moving to FY 20 24 dividends. While there is no change in the underlying assets represented by your shareholding following the corporate restructuring of the demerger, before I declare the first quarter dividend. I've done that one. Let's move right through the dividends statement, so slide 14. Thank you.
While there's no change in the underlying assets represented by your shareholding following the corporate restructuring of Precinct into a stapled group, shareholders will now receive a PIE dividend for Precinct Properties New Zealand Limited and a separate dividend for Precinct Properties Investments Limited. The board expects total combined cash dividends for Precinct Properties New Zealand Limited and Precinct Properties Investments Limited for the 2024 financial year to be NZD 0.0675 per stapled security to be paid to shareholders. Payment of the 2024 first quarter dividends for Precinct Properties New Zealand Limited and Precinct Properties Investments Limited will be made on the fifteenth of December this year. On behalf of my board colleagues, thank you for joining us today. I'd like now to hand over to Scott for the next session of the presentation. Scott?
Good morning, everyone, and welcome to the 2023 Annual Shareholder Meeting for Precinct Properties. I am Scott Pritchard, the Chief Executive. As Craig mentioned earlier, the 2023 Financial Year has seen our business progress in advance in all aspects of our strategy. The business continues to evolve, supported by its premium quality investment portfolio and supportive occupier markets. Through our market position and the team's expertise, we have extended our capital partnerships with direct investors on our assets and on our projects and have sourced new development projects. We've established a residential development platform in partnership with Lamont and Co, which has extended our real estate offering and is supporting Precinct's strategy focused on mixed-use precincts. Our investment partnerships continue to demonstrate the strong demand for joint investment into high-quality assets and large-scale development projects.
The next slide summarizes our capital partnering to date. During the year, we advanced Precinct's partnership with the Singaporean Sovereign Wealth Fund, GIC, with the sale of 75% of Wynyard Quarter Stage III development project. We also agreed a new investment partnership with global, Global private investment firm, PAG, which has been another key transaction during the financial year. More recently, Precinct has also announced it has formed a joint venture with Ngāti Whātua Ōrākei to invest in the regeneration of the Te Tōangaroa precinct in Auckland City Centre. Precinct's investment will be in partnership with global investor, PAG. The Te Tōangaroa portfolio comprises two low-rise commercial buildings situated at Eight Tangihua Street and Thirty Mahuhu Crescent, totaling approximately 22,000 square meters.
By investing alongside our capital partners, we create alignment, and by being a local partner with deep market knowledge, we aim to provide our partners with superior investment performance. The key benefit for Precinct is an improved return on equity. We can use our balance sheet more effectively and participate in a greater range of value-add activities alongside our partners. Moving to our key themes. We have delivered on our strategy of growing our capital partnerships to around NZD 1.6 billion over the last 12 months. The occupier market for premium grade space continues to perform well, with material rental growth and growing demand. Occupiers are prioritizing their workspace in an effort to attract workers back into the office. And despite this demand, though, with further increases in interest rates during the year, valuations have come under pressure as capitalization rates have expanded.
I would now like to share some of our 2023 portfolio highlights with you. Our investment portfolio remains in very good shape, with occupancy across our assets at 99%, a long weighted average lease term of six years, and rental growth of around 14% in the last 12 months. In total, we recorded around 53,000 square meters of leasing, which was completed in the last 12 months, demonstrating the strong demand from businesses wanting to occupy high-quality office space. Now moving to our development portfolio. In total, we have around 74,000 square meters of space that's under construction, valued at over NZD 1 billion. Pleasingly, across all of these developments, pre-leasing has been advanced to over 90%.
Over the past six years, Precinct has successfully developed NZD 1.8 billion in development projects, the most recent completions being Bowen Campus Stage Two and Willis Lane, which were both in Wellington. The commencement of 61 Molesworth Street in Wellington and One One Seven Pakenham Street, Wynyard Quarter in Auckland, have replenished our development pipeline, with further small residential projects anticipated to start later this year. This next slide shows some of the images of our current development projects. The next development completion that we anticipate will be One Queen Street. We're expecting practical completion in early 2024. We believe our ability to continue to create premium-grade real estate through our developments is a key feature in growing our capital partnerships. The following slide shows some images of the residential development platform from Lamont and Co.
The multi-unit residential developments are a natural extension to Precinct's strategy, providing competitive and diversification benefits for future investment opportunities. Through our joint venture with Lamont and Co, we have one residential project to complete at the end of this year, and we have commenced two new projects on behalf of Capital Partners. Looking ahead, our business is well-positioned, and we will continue to explore opportunities to scale our capital partnerships, which support Precinct's outlook. While the New Zealand economy is facing rising interest rates and some global uncertainty, we are committed to managing our market position and ensuring our balance sheet remains in a strong position. We are supported by the strength of our office markets here in Auckland and in Wellington, with workers now back in the office and the demand for premium grade space remaining robust.
To conclude, it's been an incredibly busy 12 months, with progress made across all fronts of our business. The quality and effort put in by those in our organization has been outstanding. I would like to again acknowledge the huge contribution our people continue to make for the success of Precinct. I would also like to thank our board of directors for your ongoing support and governance of Precinct. Of course, Craig, before I hand back to you, on behalf of Precinct's management team, we would like to again thank you for the significant contribution you have made to Precinct during the time that you have served on the Precinct board. Since joining in 2005, and through corporatization in 2010, you have been an exceptional chair and played a key role in the success of our business over the years.
You have truly been instrumental in the direction of Precinct through your governance leadership, which includes the corporatization in 2010. More recently, leading the challenge of internalizing our management function for the business in 2021, and seeing Precinct move to a stapled group structure in July this year. Personally, Chair, I've appreciated your support and your guidance. You are incredibly respected by your peers, and we wish you all the very best for the next phase of your career. Thanks, everyone, for joining us today. Greetings. Back to you, Mr. Chair.
Thank you, Scott. That was very heartfelt. Thank you very much, and I appreciate the warmth of the audience, so thank you very much. Okay, we've had no questions sent through via email prior to the meeting, so we'll now open the floor to any in-person questions and address these first before we move to any online questions. I'd now like to give any shareholder present in person today the opportunity to ask questions of the board, management, the auditors, or our legal representatives. Directors and management are also, of course, happy to answer questions from shareholders here more informally during the refreshments to be held at the end of this meeting. When asking questions, can you please state your name and advise whether you are a shareholder? Okay, the floor is now open. Who would like to ask a question? Yes, ma'am.
I'm Beryl Plummer. I'm both a shareholder and a shareholders' association-
Oh, well, welcome. Yeah.
Thank you. I've got two or three questions.
Yes.
One at a time?
Yes, yes, of course.
So the first one is the development you're doing with Ngāti Whātua Ōrākei. I read in the paper of a number of people who have had residential properties they've bought with Ngāti Whātua Ōrākei Trust getting very badly burnt. So can you tell us a bit more about that development and how you protect against that sort of-
I'm not aware of the burnt nature. Scott, do you have any comments on that?
Is that on? It's on. Thank you.
Yes.
Look, that component... I can't speak on behalf of Ngāti Whātua Ōrākei, but that, part of their business is not a part of the business that we have invested alongside them. We have effectively acquired two office buildings with them and with PAG, our partners, and our strategy is to reposition those office buildings and to attract, occupiers back into them. Some of those have vacancies coming up, and so that is an opportunity, we think, to take some assets that have been, managed okay and to lift their performance and provide good returns to shareholders.
Is the land leasehold land?
The land is a prepaid leasehold structure.
Cool.
It's how we would describe it as the equivalent of freehold, given the length of the leasehold interest.
Which is what?
125 years.
In which case, it'll be under the sea.
Yes, a while.
Okay.
Perhaps.
So that was one, and I mean-
It was actually two or three within one, but that's fine.
Yeah. I mean, I voted for the stapling. I read the stuff about stapling. I didn't really, truly understand it, but I thought, "I trust you guys." Can you explain to me, and I guess there may be some other people, about how the dividends are going to work, and particularly the tax implications of the pie and the dividend, and if you're splitting it, and imputation credits and all that?
Yeah. So it's... Well, yes. Let me explain. Firstly, there will be two dividends from two different companies.
Mm-hmm.
One is a PIE company, P-I-E, like a portfolio investment entity company, and one is not. So that general deduction, would I ask Richard or George to explain in more detail around tax per se, so it's very clear to our shareholders?
I mean, say I had 1,000 shares, you know?
... how would that dividend work in the coming year?
You have 1,000 shares.
Yeah.
You, you've now got 1,000 shares in PPNZ, which is the PIE.
Yep.
You've got PPNZ, and you've got 1,000 shares in PPIL. PPNZ remains a PIE.
Mm-hmm.
So you'll have imputation credits, if there are any, and the rest will be excluded income. So no change for that side of the dividend. The other side will be like any other company. So, any other company that you would own, there'll be imputation credits attached to that. And you'll need to file those within your tax return.
Yeah. And what will be the split in, particularly around the imputation credits and things like that? Like, for next year, have you got a plan for, you know, the next one?
The split will be based on the profitability of both of those companies. This year, the dividend that we're putting out is NZD 0.0076 per share on the PPIL side, and the balance of the guidance of NZD 0.0675 will be on PPNZ. The ultimate split moving forward will vary, depending on the performance of the entities within PPIL. So PPIL is the management business-
Yeah.
-and also has Generator and a number, and some other operating businesses as well. But that one will vary, depending on the kind of the delivery of our strategy over time.
Cool. Thank you. And my last question, just 'cause you didn't mention it: City Rail Link. How's it going, and what's it gonna be like when it's finished?
Well, of course, we're not responsible for the City Rail Link. You'll have to ask them directly.
No, but I'm sure, I'm sure you know about it.
But we look forward to it being completed, too, because it runs underneath our buildings. So we're very keen to have it operating so that Aucklanders from all parts of the suburbs that the rail link's on can come and enjoy Commercial Bay. So, I don't have a view on the timetable or the cost, for that matter, between government and ratepayers. So I don't know the answer. You'll have to ask City Rail Link, but we, we want it finished, too. Thank you for your questions. Any other question?
What's the current completion date?
I don't have that year, but anyone venture an answer?
Practical completion of the project is currently scheduled for November 2025. The actual date at which Auckland Transport or City Rail will be putting trains down the track will depend on their own operational readiness. So it will be some months after this.
So post-Christmas 2025, I think is what you're saying, Ian, when it may become operational?
Yeah.
Any other questions? Yes, sir.
Yes. Edward Strachan, I'm a shareholder. I noticed with the recent issue that you had of your subordinated notes, to repay your bank debt, that there were certain provisions and conditions in there regarding the tax deductibility of the, management fee. I thought that a bit unusual in being part of the terms of an issue like that. Is there actually some suggestion from the Inland Revenue that that may be about to happen?
Not that I-
Well, I don't quite understand. Is the deductibility being spread over a number of years, or is it being actually deducted in one year?
So the question is the tax treatment of the notes. So Richard, would you like to answer that, if we understand the question?
Yes. Sorry, not quite understanding the question. Is it tax deduction of depreciation on structure or?
No, the tax deductibility of the PAG management buyout fee that you paid, the NZD 213 million.
Oh, okay.
Yeah, of the tax treatment of that?
Yes.
No, there's no risk on that. So that's happened, we get a ruling on that, the internalization amount. So we have NZD 60 million of tax loss available.
Is that being spread over a number of years, the deductibility, or is it in one amount?
It w-
My guess is, well, NZD 213 million. So the figure we're talking about is deductibility of NZD 213 million. Is that in one year or spread over a number of years? And if so, how many?
It will be spread, as we start to have a tax expense going through our P&L, and that's probably over the next four to five years. And we'll use it up. So, over that time, there'll be no tax paid to IRD.
Thank you.
Yes, question over here.
Ask another question.
Hi there, I'm Nathan Hyland, and I'm a shareholder. I have a question around your capital partnerships to begin with. What are the main benefits of these capital partnerships, particularly with PAG and your other partners as well? What are the benefits outside of diversification and selling a portion of your new build assets above, of course, operating costs?
Well, thank you for your question. Two principal opportunities for us. One is that we are offering opportunities to third parties who have balance sheets that are not ours. So we can contribute a smaller amount of our balance sheet to a partnership with them. And secondly, because we would like to run those sites for those third parties, who are generally not based in New Zealand, we can earn management fee income, which goes to operating earnings of the partner company that we discussed before around dividends. So it gives us opportunities to create new non-pie income and to leverage opportunities with third parties who are trying to find partners in New Zealand who are credible development partners.
So the core reason is absolutely down to diversification and increased revenue on those management assets?
Well, it's sharing of the balance sheet risk, isn't it, with others?
It's the risk asset and/or the risk appetite as well as the income appetite?
Yes. It's diversification away from a core balance sheet approach, which was what we were doing in 2010. So very much different. Correct.
Awesome. Thank you. And one other is, I noted you had some, kind of retail offerings, like the build-to-rent kind of roadmap, that's similar to other firms within the industry, such as Kiwi Property. Are you able to expand on those developments, where they may be taking place? Any, like Auckland or, any other jurisdictions within New Zealand?
Yes. So we're still exploring the concept. You'll know that we've partnered with Lamont and Co-
Mm-hmm
... to start a residential, construction offering of residential, apartments, behind Domain, in Domain Road, Onehu nga, and now York Street, Parnell. That's not a build-to-rent strategy, but we're interested in exploring that. So no answers yet.
All good. Thank you so much.
Any more questions? Anything online at all, Louise?
Yes, we do, Craig. We have a question from Peter Truman: What are the current intentions for the redevelopment of Freyberg Building?
The current intentions for the redevelopment of Freyberg. Who'd like to answer that?
Sure, I can answer that. At the moment, that's being held as an asset that's generating income, and we're exploring a range of options to redevelop that asset. One of those is office, one of those is residential. And so it's really a question of the strength of each of those markets in Wellington. But the pleasing thing is, in the meantime, it's generating a holding income. And so it's one of those assets that we really like because we've got optionality.
No further questions.
No further questions online? Okay, thank you. Now I'd like to ask our incoming Chair, Anne Urlwin, to come up and say a few words before we proceed to the formal business of the meeting. Anne, please.
Thank you, Craig. Tēnā koutou katoa. Good afternoon, shareholders. As I stand before you today to take on the role of chair of Precinct, it is both a delight and a privilege to have been considered by Precinct's People and Performance Committee, the best replacement for Craig, although you're irreplaceable, Craig. I would like to express my sincere appreciation for the trust and confidence of my fellow directors and the management of Precinct, that they have placed in me to lead the Precinct board. As you'll be aware, I joined the board in September 2019, and I have been chair of the Audit and Risk Committee. I feel very fortunate to have been selected for those roles, which have enabled me to contribute to the Precinct board and its overall governance regime.
I believe my experience and professional skills, including as a chartered accountant and a good understanding of New Zealand's business environment and its capital markets, enhance the Precinct board, while also complementing the skills and experience of my fellow directors. As both Craig and Scott have mentioned here today, Precinct has successfully advanced a number of transactions over the last 18 months. These initiatives have successfully extended Precinct's real estate offering, supporting it to achieve its growth aspirations and create long-term, sustainable value, while also reinforcing the quality of Precinct's business and the leading position it holds in the markets in which we operate.
As Chair, I will ensure that the board's focus continues to be on the creation of long-term shareholder value and ensuring Precinct is run in accordance with best management and corporate governance practices, and that the legitimate interests of all stakeholders are taken into account in the decision-making of the board. While I do sit on a number of boards, I believe my time commitments are well-placed. As a professional director, I take seriously each of my respective roles and my ability to serve an organization effectively. To ensure my time commitments enable me to fulfill my director duties and obligations to the best of my ability, I have, in the last nine months, ceased to be a director of both Queenstown Airport Corporation and Summerset Group Holdings .
In addition, I have also retired from my long-time role as the independent chair of Ngāi Tahu's Audit and Risk Committee. This follows my appointment to the board of Infratil earlier this year, and this appointment as chair of Precinct. So I would like to thank you all once again for entrusting me with this important responsibility. I am excited to lead the Precinct board in the capacity as chair. I firmly believe that the Precinct business and team will continue to leverage off its achievements and learnings over the past years. It is a team made up of a diverse and talented group of individuals with a shared purpose and intention to ensure that the places and the spaces which are created have a lasting impact on our society, communities, and how people interact.
So I look forward to a journey of growth, success, and enduring value, ensuring that Precinct continues to deliver on its strategy through ongoing prudent management. But before I hand back to Craig for the formalities of today, I would also like to acknowledge the tremendous work undertaken by him over the years. As Scott acknowledged earlier, and many of you will recall, Craig led the corporatization in 2010, which saw AMP New Zealand Office Trust move from a unit trust to a company structure, a key turning point where a number of key governance changes were made, and the new name, Precinct, was subsequently adopted in 2012.
Notably, in 2018, Craig was a key advocate for Precinct becoming a significant partner of the Auckland City Mission's Home Ground project, which together brings permanent housing, expanded health and social services, state-of-the-art addiction withdrawal service facilities, and a comprehensive program of activities in a warm and welcoming space. During Craig's time as chair, his governance leadership has also contributed to the commitment of the transformational project that is Commercial Bay, which opened in 2020, marking a significant milestone for both our business but also Auckland city centre. In 2021, Craig led the internalization of Precinct's management function for the business and, more recently, the corporate restructure to create a stapled group structure, ensuring long-term growth opportunities for Precinct. So Craig, on behalf of our board colleagues, thank you for your ongoing leadership and guidance to date.
As Scott said, you have been instrumental in the direction of Precinct over the past 13 years and have made such a significant contribution to the business. So thank you for the opportunity to address the meeting, and particularly to acknowledge and thank Craig on behalf of us all. Thank you.
Well, thank you for your warmth. Again, it's a team, though, isn't it? It's not a single person, it's a team. So I'm just one part of a team. So, you are very privileged to have a team such as the directors and management of Precinct to progress the journey of the business to where it is today. So look, thank you, Anne. Before we move to the formal business, I just wanna make sure that you understand that I support wholeheartedly Anne's decision and support by the board to become chairperson. She will lead Precinct's fortunes well into the future. So congratulations to you, Anne. As set out in the notice of meeting, voting entitlements have been determined as at 5 o'clock on 10th of November.
Registered shareholders at that time are the only persons entitled to vote, and only the shares registered in those shareholder names of, at that time, may be voted at the meeting. Votes can be lodged by attending the physical meeting today or during the virtual meeting or by proxies. For your proxy to be effective, it must have been received by 11:30 on Sunday, twelfth November. Proxies have been appointed for the purposes of this meeting in respect of 485 shareholders, representing 52.65% of all shares on issue. Voting on all resolutions put before the meeting will be conducted by poll only, and the board recommends you vote in favor of all resolutions. All shareholders present at today's physical meeting should have received a voting paper when registering at the registration table this morning.
If anyone does not have a voting paper, could you please raise your hand now, and a Computershare staff member will come and give you one. Has anyone not got one? No? That's fantastic. Shareholders will be given the opportunity to ask questions following the reading of each resolution. I ask that in the interest of fairness to all shareholders attending the meeting, that any shareholder wishing to speak should be as concise as possible and be considerate to other shareholders wishing to ask questions. Resolution one relates to the election of Chris Meads as an independent director of Precinct Properties New Zealand Limited. Before we vote on this resolution, I'd like to invite Chris to come up to the podium to address you today. Chris.
Good afternoon, shareholders, and thank you very much for allowing me to say a few words. I think the most difficult thing I've had to do this afternoon is get out from underneath that screen, but we'll cope. I'm very honored to have been asked to join the board of Precinct Properties in October this year, and I ask for your support as for my election as an independent director. Now, like many of you, what attracted me to Precinct was first and foremost, the very high caliber of the people that lead the business and work in the business, and virtually all of them are here today. So, it's testament to the fact that this is a well-run business, and that's why we're all here.
Secondly, the other thing that attracted me was Precinct's potential to really create long-term value for shareholders. Now, a little bit about myself. My professional experience, as Craig alluded to, was largely gained as an investment manager. Most recently, I spent a decade as Chief Investment Officer at a firm called Pantheon Ventures. Not probably well known to most people in New Zealand, but it's one of the largest global private equity and infrastructure investors, and with a very long history of market-leading investment performance... And at the time I retired from my position as CIO in 2020, we had around $66 billion of client funds under management, just to give you an idea of the scale of what we were managing.
As a shareholder, I would always be interested to understand how directors think about investment, and my own personal investment philosophy, and the one I really led when I was at Pantheon, could best be described as value-oriented. I spent 20 years learning about different investment styles from some of the best private equity and infrastructure fund investors around the globe, and it was based on that experience that I sort of honed my own personal investment style. When you have a long-term investment horizon, sort of say 10, sorry, 5-10 years or so, you quickly learn that your ability to predict the future is relatively limited.
You only have to think about some of the global events we face at the moment to see just how difficult it is, almost impossible, quite frankly, to account for everything in life that can happen, both in a global, political, or business context. What you can control, though, is being very clear-sighted and identifying the aspects of investment that you have some say over, and in particular, the price you pay for the investment at the outset.
So for me, in discussing my own investment style, paying very close attention to the price you pay for the asset at the outset, sticking to those areas of expertise that you fundamentally know and understand, and just accounting for the fact that life is uncertain and provide a margin of safety to cover for that uncertainty, is the type of approach, simply put, that has worked well for my own investments and the investment team that I led when I was at Pantheon. Now, it's very easy to talk about being a value investor. It's much harder to implement in practice. It requires you sometimes to go against fashion and the herd, and in particular, when times are great and bullish, to be a little bit more temperate in the way you approach investment staging and pricing.
Conversely, when the sky is falling and there's a bit of doom and gloom around, that's when it's time to step up to the plate and still be active in the investment market, because prices are likely to be a bit more attractive in the long run. As I say, easy to say, harder to do, and it's in getting those details right, that's what really separates the good from the great in the investment arena. Now, I'm very mindful that with the construction focus in this business, you know, there's the old saying, "If you have a hammer, everything looks like a nail." But for me, Precinct is first and foremost in the business of long-term investment. When we look at the board here, I think it's testament to what Craig and the team have developed over many years.
The best boards require breadth and diversity of views and experience to work well, and I hope my own personal experience and value-oriented investment style will actually stand both the discussions at the board level and interactions with senior management of Precinct in good stead, and ultimately deliver on value for you as shareholders. So thank you very much for allowing me to address the meeting. I'm very happy to answer any questions you may have, and finally, just I would very much welcome your support for my election as an independent director. Thank you.
Thanks, Chris. Now moving to the first resolution. I move as an ordinary resolution that Chris Meads be elected as a director of Precinct Properties New Zealand Limited. The resolution is set out in the notice of meeting and on the voting form you will receive. We'll, first of all, though, take any shareholder questions from the floor here today. Are there any questions from shareholders for the board or for Chris?
This is a very quick one. Are you resident in New Zealand or in Australia?
The question was, Chris, are you resident in New Zealand?
I actually... I live in Australia. I live in Australia, I have very close family connections with New Zealand, so-
Thank you.
I live in Australia, and I have very close family connections with New Zealand, so coming over the Tasman is quite straightforward for me.
Thank you. Any other questions? Any online questions, Louise? There are no online questions. Thank you. If there are no more questions, then voting of this resolution will now proceed to a poll. Moving to resolution two, I move as an ordinary resolution that, in accordance with NZX Listing Rule 2.1.1, the amount payable to any person who, from time to time, holds office as a director of Precinct, be increased pursuant to the per position sums shown in the proposed remuneration column of the table contained in explanatory note two, with effect from 14 November 2023. The resolution is set out in the notice of meeting and on the voting form you will have all received. We will now take any shareholder questions from the floor here today. Are there any questions on directors' remuneration? Nothing from the floor.
And then, Louise, from yourself? Nothing from Louise. As there are now no more questions, voting of this resolution will proceed to a poll. Resolution three, auditors' remuneration. I move as an ordinary resolution that the directors be authorized to fix the remuneration of Ernst & Young as auditor for Precinct Properties New Zealand Limited for the ensuing year. Again, this resolution is set out in the notice of meeting, and on the voting form you will have received. Any questions from the floor from shareholders? Nothing. Any questions online, Louise? Nothing online. As there are now no more questions, voting of this resolution will proceed to a poll. Resolution four, minor alteration to the constitution of Precinct.
I move as a special resolution that the constitution of Precinct Properties New Zealand Limited is amended by deleting Clause four of Schedule two and substituting the following: Proxy form must be sent or made available with notice. A proxy form must be sent or made available with each notice of meeting. The resolution is set out in the notice of meeting, and on the voting form you will have received. Are there any questions from the floor? Are there any questions online? As there are now no more questions, voting of this resolution will proceed to a poll. Resolution five, auditor's remuneration. I move as an ordinary resolution, that the directors be authorized to fix the remuneration of Ernst & Young as auditor for Precinct Properties. As we had this resolution, had we not? Is that correct?
Yes.
I beg your pardon, this is for PPIL, so a different company. That the directors be authorized to fix the remuneration of Ernst & Young as auditor for Precinct Properties Investments Limited for the ensuing year. This resolution is set out in the notice of meeting and on the voting form you will have received. Any questions from the floor? Any questions online? Okay, there's no more questions. We'll proceed to a poll. Minor alteration to the constitution of Precinct. Resolution six. I move as a special resolution that the constitution of Precinct Properties Investments Limited is amended by deleting Clause four of Schedule two and substituting the following: A proxy form must be sent or made available with notice. A proxy form must be sent or made available with each notice of meeting.
The resolution is set out in the notice of meeting and on the voting form you've received. Any questions from the floor? Any questions online, please? As there are no more questions, voting of this resolution will proceed to a poll. That concludes our discussion on the items of business. Computershare representatives will now bring ballot boxes around the room for any shareholders who have not yet voted. If you could please complete your voting paper, ensure that it is signed, and place it in the boxes being brought round now. Pens are available, and Computershare staff will be able to assist you with any questions. For those of you joining us online, a reminder that you can also vote online now, if you haven't already done so. In a couple of minutes, I'll close the voting system.
Please ensure that you have cast your vote on all resolutions. I'll just pause again to allow you time to finalize those votes online, as we've collected all the votes, I believe, on the floor. So Computershare, we're all good? Yep. Okay. All right. Voting is now closed. Finalized results will be announced to the NZX in due course. A copy of the announcement will also be available on our website. That concludes the formal business today. So thank you all for joining us and for your participation and your warm appreciation of what the board has achieved for the last financial year. I'll now formally declare the meeting closed, and for those of you present at the tower today, please join us for refreshments. Thank you very much, everybody. Thank you for your attendance.