The independent chairman of Kiwi Income Property Trust's manager says a plan to internalise its management contract at a cost of about $NZ70.6 million ($A62.75 million) won't strain the property investor's balance sheet.

The trust’s gearing may rise to 38 per cent on settlement from 34 per cent in the first half, though it will reduce again on receipt of the first $NZ47.5 million payment in the sale of its 205 Queen Street, Auckland building. That sale, to Brisbane-based Bloomberg Inc, was announced…