Summer questions: Clive Mackenzie and holiday shopping magnet Sylvia Park

Kiwi Property chief executive Clive Mackenzie. Photo / Dean Purcell

If there’s only thing the last few years have taught Kiwi Property Group chief executive Clive Mackenzie, it’s that it’s impossible to make any firm predictions.

So he’s a little reluctant when it comes to forecasts for the year ahead.

But he does note some record results and the huge popularity of properties in the group’s portfolio, including a certain Mt Wellington mall which draws tens of thousands of shoppers - especially around this time of year.

Q: How would you describe 2022 for your business?

It’s been an unusual year. Inflation and interest rates are up and yet despite that, so are sales. Consumers spent around $800 million at Sylvia Park in the 12 months to November. Kiwi Property achieved a lot this year despite the challenging economic climate.

We posted some record financial results and made major progress on several transformative construction projects, including our new office and build-to-rent apartment developments.

We’re also underway with earthworks at Drury, where we’re planning to build a sustainable city, which is an incredibly exciting opportunity.

Q: How is your business planning to tackle 2023?

We’re tackling it head-on. There’s no doubt that economic headwinds are strengthening, but we’ve got a great team, robust balance sheet and some of the best retail and office assets in the country.

The key to maintaining the company’s performance is brilliantly managing our properties and delivering the best experience for customers and tenants. If we do that, we’ll put ourselves in the strongest position to be successful in 2023 – and beyond.

Q: What will be the major challenges and/or opportunities for your industry?

Rising interest rates create challenges for most property companies and ours is no exception.

We’ve already seen asset values start to come back slightly and there are lingering concerns in the market about a potential recession. There’s no doubt some firms will come under pressure next year, but that will also open new transaction opportunities.

We’re getting ourselves ready to take advantage of the chances that’ll lie ahead over the next couple of years.

Q: What are your predictions for 2023?

If there’s one thing the last few years have taught me, it’s that it’s almost impossible to predict what’s going to happen in the year ahead. Who would have thought we’d endure two years of a global pandemic and prolonged lockdowns, only to run headfirst into such a challenging macroeconomic climate?

I do think through that 2023 is going to be tough for many Kiwis as we deal with high inflation and rising interest rates. It’s difficult to say how deep or how long a potential recession might be, although hopefully we move through any possible correction quickly, and with limited fallout.

Q; What was the most interesting story of 2022?

It was fascinating to watch Elon Musk’s takeover of Twitter unfold, not just because of the size of the transaction, but also the public response and the way the restructuring of the company has been handled.

Twitter is an incredibly powerful and influential social media platform so the stakes are high for getting it right. I’m looking forward to seeing the way things unfold over the coming months. I’m sure there’s plenty of drama still to come.

Q; Where and how are you holidaying this summer?

I’ll be at Waiheke with my family. I’m looking forward to catching up with friends, spending some time at the beach and recharging my batteries ahead of a big 2023.