Kiwi Income Property Trust seems to be getting richer. The company has raised $120 million through the sale of convertible notes.

A tricky but a smart view has been shown by the company towards clearing its bank debt of $557 million. As the case goes, they could also go towards buying some new commercial buildings, but this is still in mystery.

The rate of interest on the notes is 8.95%, which will be paid quarterly. These will be used in reducing the debt. The first payment will be made on 20 December.

Kiwi's portfolio worth $1.83 billion owns gearing assets which are Sylvia Park Shopping Centre, Vero Centre in Auckland, Unisys House in Wellington and the Christchurch PricewaterhouseCoopers building.

On this Milford Asset Management manager Alan Moore said, "Kiwi has good properties that are soundly managed, with a respected track record. The offer's a good one".

Since last year shares of Kiwi have recorded an increase of 2 %, but today remain the same at $1.02.