CEO Q&A: Chris Gudgeon, Kiwi Property chief executive

Kiwi Property chief Chris Gudgeon says ASB North Wharf is strong on environmental design. Photo / Greg Bowker

Kiwi Property has snared global retailers Zara and H&M, as well as bringing Reading Cinemas to Auckland. Chief Chris Gudgeon tells Anne Gibson about the secret to his success.

You've just secured Zara and H&M at Sylvia Park. How did you do that?

To have Zara and H&M announce their first New Zealand stores will be opening in late 2016 speaks volumes about our long-term plan and our vision for Sylvia Park to be a world-class retailing destination.

We're always looking to create new retail experiences for our customers and we're proactive about targeting retailers that we think will work well in our centres around New Zealand. It's fair to say that Sylvia Park is Auckland's premier retail destination and a great fit for retailers like Zara and H&M who want to be in the best locations around the world.

We think New Zealanders will be genuinely excited to have access to these leading global brands and, if the opening of these stores around the world is anything to go by, they will be very exciting events.

Tell us a bit more about the planned expansion of Sylvia Park and what it might look like in 10 years.

It's early days yet, but we are currently evaluating plans to expand the centre to include further global brands, specialty retailers, department stores and even office accommodation.

You've just spent $39 million at LynnMall. How has that all gone for you?

Fantastic. We've had thousands of people through the new dining lane and our pedestrian count is up over 30 per cent on this time last year, which is a great sign.

The local community are loving the fact that they have a one-stop shopping, dining and entertainment destination so close to home.

We've also had great feedback from our new operators.

LynnMall has a long history of being part of the community for more than 50 years. Our recent investment is another chapter in this history and one that we are genuinely excited about for West Auckland.

How did you manage to get Reading Cinemas to its first Auckland multiplex?

We've had a great long-term relationship with Reading Cinemas at another of our shopping centres. Reading has been really keen to establish in Auckland and this was an excellent opportunity to bring back cinema to New Lynn after a 15-year absence.

They've got a 1000-plus seat complex and a $10 ticket price, which is going down really well with our local residents and the wider community.

Is online shopping making any difference to centres such as LynnMall and Sylvia Park and if not, why not?

Online shopping certainly has its place and is a growing market, not just in New Zealand but globally. We've been focusing on evolving our retail mix to include more dining, leisure and entertainment options for our customers, and to provide facilities and services beyond conventional retail.

We are very deliberate about creating great experiences for our customers.

Your ASB North Wharf is radical in terms of architectural design. How did the investment community perceive it?

We think ASB North Wharf is a great new addition to the Auckland skyline. It's strong on environmental design and offers a new benchmark for activity-based working.

We can't answer on behalf of the investment community but what we can say is that our investors are benefiting from a blue-chip tenant on an 18-year lease providing attractive income returns.

Vero is New Zealand's tallest office tower. Is it also the best? Weren't views obscured by an apartment block a few years ago?

Vero is an absolutely premium-grade building that has stood the test of time. Shortland Street remains at the heart of Auckland's CBD and the building continues to be strongly supported by the business community. Occupancy is at 99.4 per cent, its highest level since 2010.

We're confident it will continue to be a highly sought-after location. The vast majority of the building still has commanding city and harbour views and we have some impressive lobby refurbishment plans that will start in the new year.

What big plans do you have for the future at Kiwi?

Kiwi Property is in good shape with a committed and talented management team, a healthy balance sheet, a strongly performing property portfolio and a range of high-quality development projects. Next year we will complete our 35,000sq m government office accommodation project in Wellington and will hopefully be in a position to announce plans for the next generation of development at Sylvia Park here in Auckland.

Watch this space.