Sylvia Park Lifestyle sale: Kiwi Property secures $90m Mackersy agreement

Kiwi Property has agreed to sell its Sylvia Park Lifestyle complex for $90m to Mackersy fund. Photo / Google Maps

By RNZ

Listed company Kiwi Property Group is set to sell a large-format retail property next to its Sylvia Park complex in Auckland for $90 million.

The buyer will be the yet-to-be-established Mackersy LFR Fund, a large-format retail investment fund managed by Queenstown-based commercial property investor Mackersy Property.

Kiwi Property chief executive Clive Mackenzie said it would continue to manage Sylvia Park Lifestyle and the sale would provide capital for new developments and strengthen its balance sheet.

“By retaining a significant stake in the LFR Fund, we can continue to leverage our retail management and leasing capabilities to drive the performance of the asset on behalf of both Kiwi Property and LFR Fund investors.”

The deal is subject to Mackersy LFR raising the required funds by mid-December.

Kiwi Property has agreed to buy 50% of the units and underwrite another 25%, giving it up to 75% of the fund, while receiving between $52.9 million and $65.3m cash for the sale of the property to the fund.

Mackersy chief executive Hamish Wilton said the new fund would suit wholesale investors to invest in large format retail, which tends to be resilient in all market conditions.

“Our valued relationship with Kiwi Property has meant we have been able to secure Sylvia Park Lifestyle as the initial seed asset for the fund.”

Sylvia Park Lifestyle covers 16,500sq m and houses major retailers such as Animates and Spotlight.

Kiwi Property Group also invested in the parent company, Mackersy Property in November 2024, and expects this to convert to a 50% stake in December 2025.

– RNZ