Clive Mackenzie, chief executive, Kiwi Property talks build-to-rent apartments and office space development at Sylvia Park. Video / Michael Craig
Multibillion-dollar landlord Kiwi Property Group’s chief executive Clive Mackenzie says interest rates, housing and his company’s new build-to-rent scheme beside Sylvia Park are what interests him most.
Events planned for 2024 will take the company forward, especially when hundreds of tenants move into the company’s new apartment brand,Resido.
Q: What are your hopes for the new Government?
I’d love to see the Government do more to unlock housing in New Zealand. There’s currently a shortfall of homes in this country that, when coupled with the surge in migration and declining levels of construction, is making renting more expensive and home ownership harder to achieve.
New types of residential accommodation, such as build-to-rent apartments, could play an important role in the broader residential solution but will need more support if it’s to scale up in New Zealand as it has in markets such as Australia and the UK.
We’ve been undergoing a strategic transition over the past few years, reducing our exposure to traditional shopping centres and instead focusing on creating mixed-use communities at key transport nodes.
In 2023, we started to see the benefits of that evolution, with sales at Sylvia Park growing almost 20 per cent to more than$910m for example, and our latest medical and office development opening at 3 Te Kehu Way. We’re looking forward to continuing that momentum into 2024 and have some exciting opportunities ahead.
Q: What will be your biggest business challenges in 2024?
Recent interest rate hikes have created significant headwinds for the property sector and made new developments hard to stack up. Hopefully, we’ll see rates level off or even start to decline in 2024, which will help inject confidence back into the market, reignite construction and take some pressure off the cost of living.
Naylor Love removed cranes at Kiwi Property's new build-to-rent towers at Sylvia Park in late 2023, ready for tenants to shift in during 2024. Photo / Naylor Love
Q: What opportunities do you see in 2024?
We see huge opportunities for the growth of the build-to-rent residential sector in New Zealand in 2024 and we’re excited to be opening the country’s first large-scale BTR development, called Resido, from May 2024.
Build-to-rent is an exciting new way of living that will offer Kiwis a combination of quality accommodation, secure tenancies and great amenities. With the number of renters in Auckland growing sharply, our aim is to help alleviate the current housing shortfall while delivering a superior renting experience.
Q: What was the most interesting news story of 2023?
The Auckland floods and Cyclone Gabrielle were two of the most memorable events to impact this country in 2023. The scale of the devastation was tough to watch, but as always, it was impressive to see the way Kiwis rallied together to support one another through tough times.
These extreme weather patterns gave us a stark reminder of the threat of climate change and the importance of taking steps now to protect our people and our communities in the future.
Ivy-covered bund and poplars between Sylvia Park and the new BTR scheme. Photo / Michael Craig
Q: What would you recommend as a good book to read over summer?
I’ve just finished Outlive by Peter Attia, which looks at human longevity and the steps people can take to improve their health and wellbeing. It’s a great read, especially if you’re making a New Year’s resolution to take better care of yourself in 2024.
Q: Where and how are you holidaying this summer?
I’ll be holidaying on Waiheke Island and am looking forward to spending plenty of time relaxing at the beach with my family.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
