Kiwi increases Mt Wellington presence with $27m, 3.2ha purchase

Kiwi Property's growing Mt Wellington presence has taken a further step forward after the NZX listed real estate giant struck a deal to snap up a further 3.2ha.

Chris Gudgeon, chief executive of Kiwi which owns Sylvia Park, said the company was buying a further 3.2ha at 79 Carbine Rd and 10 Clemow Dr for $27.1 million.

"When combined with our existing landholdings on Carbine Rd and Clemow Drive, this acquisition enables us to consolidate a strategic 7.7ha landholding with a road bridge connection to Sylvia Park over the railway line," Gudgeon said.

"We have no immediate plans to redevelop the land; however, given our world-class town centre vision for Sylvia Park and Mt Wellington's status as a metropolitan centre, it makes good sense for us as a long-term investor to increase our landholdings in this strategic location," he said.

Kiwi now controls more than 30ha of Mt Wellington land including the 20.4ha Sylvia Park, he said. It owns the retail centre across the Mt Wellington Highway from Sylvia Park, where shops like Spotlight and Torpedo 7 trade.

Buildings in its new holdings are a coolstore, industrial buildings, truck fuel stop and temporary structures for office and storage.

Those buildings are leased to eight tenants, including Fonterra and VINZ, with current passing income of around $1 million a year, Kiwi announced.

Kiwi has three expansion projects at Sylvia Park: a new dining lane, office building and multi-level carpark. A fourth development project, comprising a retail galleria expansion and carpark, is in an advanced planning stage, the company said.