Kiwi Property, which has just secured international retailer H&M, is considering a $200 million office and floor space expansion of its vast Auckland Sylvia Park shopping centre where it will also build new offices.
Chris Gudgeon, Kiwi chief executive, welcomed H&M, as Kiwi announced further details of the expansion planstoday including a $150 million mall expansion and $50 million of new offices.
"Kiwi is currently evaluating a 20,000sq m $150 million expansion of the centre's retail offer. The retail expansion project is currently in the pre-development phase (which includes design, consenting and pre-leasing), with construction potentially commencing in 2017 for a possible 2018 completion.
"Kiwi Property is also investigating a potential $50 million office development at Sylvia Park, as part of its town centre vision for the site. Sylvia Park has been a standout performer for Kiwi Property since opening in 2007. The centre has enjoyed strong growth in both retail sales and net income, providing investors with an overall value gain of $180 million above its original development cost," the statement from Kiwi said.
"A range of options are currently under consideration, including the addition of further international retailers, more specialty retail stores, department stores and additional customer parking," the statement said.
Gudgeon said H&M was a welcome addition.
"Consumers the world over have come to know H&M as a leading fashion giant, and to have secured their first New Zealand store at Sylvia Park is great news for shoppers. We really believe in investing in Auckland's growth, and bringing H&M to Sylvia Park is part of our plan to create a truly world-class retail offer in an increasingly world-class city.
"Almost a decade ago when Sylvia Park opened, few could imagine that Kiwi Property would turn a brown-field site next to a motorway into New Zealand's best shopping centre. Sylvia Park is today Auckland's premier retail destination, with more than 12 million shoppers coming through our flagship shopping centre every year," Mr Gudgeon said.
Kiwi Property will invest $7.7 million to accommodate H&M and upgrade adjacent mall areas.
