Park expands to fit in more shops

Angus McNaughton

Demand for space in the country's largest shopping centre has been so strong that the project has been expanded by 10 per cent.

Kiwi Income Property Trust said it would add an extra 6200sq m of buildings to its Sylvia Park centre at Mt Wellington.

Angus McNaughton, chief executive of the trust's manager, said 3500sq m of shops and 2700sq m of space for service and office tenants had been added because of demand for more retailing and commercial space.

Two Australian retailers who have never before opened shops in New Zealand have leased space at the $388 million centre.

Womenswear retailer Kookai and surf brand Roxy have leased stores which will open next year, Kiwi Income said.

The first stage of Sylvia Park opens on June 8, bringing The Warehouse, Foodtown and 57 specialty stores to the site.

Angus McNaughton, chief executive of the trust's manager, said other retailers who had not opened in New Zealand before had also leased space at the centre.

However, they would not be announced until next month.

Last year, Kiwi unitholders complained about Sylvia Park, saying it exposed them to too much risk, forced the trust to borrow too much and marked a change in the trust's direction away from being an investor to becoming a developer.

Last winter, Kiwi raised $143 million, mainly to fund Sylvia Park.

As a result of complaints, Kiwi changed rules to give investors more say.

Kiwi, whose units closed at $1.29 on Friday, has leased all of stage one which opens next month and 95 per cent of stage two due to open in the third quarter of next year.

That second stage will be 14,000sq m and include a Pak'n Save supermarket and 50 fashion retailers.

Sylvia Park's indoor retailing space will be 6.52ha once it is completed.

The Warehouse store will be the first hypermarket the chain has opened.

It will be called The Warehouse Extra and include a full supermarket offering, the first time the concept had been tried, McNaughton said.

Kiwi also plans to develop five office blocks on the site, each up to five levels with basement carparking, on the land.

However, McNaughton said this phase of the project was dependent on demand from the commercial sector.