Kiwi Property has posted a profit increase of $89 million (13 percent) in the year ending 31 March. It has a retail portfolio of six shopping malls and one large retail centre. This includes Mount Wellington based mall, Sylvia Park, which it says it is keen to expand to draw in more customers.
Over the last year, the company has invested over $100 million into Auckland retail assets.
It purchased the Apex Mega Centre for $64 million to become part of Sylvia Park’s lifestyle precinct, and sunk $39 million into an expansion of Lynn Mall.
As well as this, Kiwi Property chief executive Chris Gudgeon says it is evaluating a 20,000 square metre retail expansion of Sylvia Park at an estimated cost of $150 million.
The company hopes to make the centre into Auckland’s most attractive retail destination.
“Our investment strategy favours the Auckland region and we are particularly excited about the potential expansion of Sylvia Park as part of our town centre vision for that site,” Gudgeon says.
He says the opening date could possibly be three years from now in 2018.
“This would accommodate new international retailers and additional specialty and department stores,” Gudgeon says.
“The redeveloped centre would offer a world-class experience and cement the centre’s position as Auckland’s most attractive retail destination.”
Total retail sales across all of its centres were up 4 percent at $1.29 billion. The value of its retail portfolio has increased $58 million to $1.53 billion.
Sylvia Park mall, which the company is considering expanding, is the flagship item in its retail portfolio.
The mall’s value increased by $31 million to hit $601 million. Over the past three years Sylvia Park has grown $89 million in value.
The company attributes this rise to improving rentals after a strong sales growth of 6 percent in the last year.
Kiwi Property’s retail assets are almost full, with 99 percent occupancy.
The company says all of its centres have posted positive sales growth.
Some of its future strategies outlined in the report are to strengthen its retail offering with dining, leisure, entertainment and service options that go beyond bricks and mortar retail.
This could be to increase not only the in-store experience but rather, the in-mall experience, drawing keen internet shoppers away from their computers and into a mall.
It also says it will upgrade its website to provide a more “compelling connection” with shoppers.