Angus McNaughton says all shops in stage three of Sylvia Park - which is now complete - have been leased. Photo / Kenny Rodger
Listed developer and investor Kiwi Income Property Trust says the value of its real estate has soared by $210 million since last year to $1.9 billion.
The developer of Mt Wellington shopping centre Sylvia Park announced yesterday its annual revaluations for the year to March and said the
rises had added considerable wealth to the trust's portfolio.
The value increases follow a year of strong demand for property and big rent rises, which have helped Kiwi in its specialist office and retailing sectors.
Angus McNaughton, chief executive of the trust's manager, said the 13 per cent rise in portfolio value was spread between Kiwi's retail and office portfolios.
The controversial Sylvia Park was assessed as being worth $420 million, up $43 million in the past year, he said. That was also significantly ahead of the centre's revaluation gain projected in April next year, he said.
Retailers have questioned the centre's performance, dubbing it "spooky park" because of a lack of shopper numbers. But Mr McNaughton was positive yesterday, saying Kiwi would today open stage three of the project, a leisure and entertainment precinct with 45 new shops.
These were fully leased, he said.
"The centre has been valued on a cap rate of 6 per cent, which is comparable with recent Australasian transactions and the valuations of assets with Sylvia Park's growth potential and quality," McNaughton said.
Kiwi's revaluations are subject to an audit and will be confirmed as part of the full-year financial result for the year to March, the trust said. The trust's units were trading around $1.68 yesterday.
On The Move
Kiwi Income Property Trust's new valuations:
* Centre Place Shopping Centre, Hamilton: $122m, up $22m.
* Northlands Shopping Centre, Christchurch: $249m, up $19m.
* North City Shopping Centre, Porirua: $135m, up $18m.
8 Vero Centre, Auckland: $300m, up $44m.
* Unisys House, Wellington: $74m, up $14m.
* PricewaterhouseCoopers Centre, Christchurch: $58m, up $13m.
* National Bank Centre, Auckland: $120m, up $13m.
