The almost-finished Ikea has risen beside New Zealand’s largest mall, so how much of a boost could one be to the other?
Clive Mackenzie, chief executive of Kiwi Property Group, which sold Ikea the land, cited his company’s Sylvia Park shopping centre as neighbouring the almost-finished Swedish giant’s firstoutlet in this country.
That, he indicated, would boost the $3.3 billion business he heads.
“The opening of Ikea next to our centre is expected to drive retail tourism and a significant boost in foot traffic for Sylvia Park, attracting new customers from across the country to visit."
Retail tourism is domestic travellers who don’t live in Auckland but would come here to go to Ikea or Sylvia Park, he said.
The long-awaited arrival of such a huge global leader in home furnishings was creating excitement amongst retailers, shoppers and residents alike, he said in releasing the Kiwi full-year result today.
Ikea is due to open in this year’s last quarter on Clemow Drive, Mt Wellington, but no exact date has yet been announced.
Kiwi Property Group CEO Clive Mackenzie today announced the company's full-year result. Photo / Jason Oxenham
Kiwi announced its full-year result today. In the year to March 31, 2025, property revenue was $259 million, up from $240m in 2024. Devaluations were less severe: $77.8m in 2024 but only $11m in 2025.
That was one of the reasons why net profit after tax rose from a $2.1m net loss in 2024 to $56m net profit after tax in 2025.
Kiwi now has $3.3b of property, up from $3.1b in 2024.
Mackenzie said Sylvia Park had 4.7% rental growth, Hamilton’s The Base had 5.9% and LynnMall in west Auckland had 2.5%.
Resido apartment lease progress
The opening ceremony of the Resido apartment complex in Mt Wellington. Hauauru Rawiri of Ngāti Pāoa (from left), Housing Minister Chris Bishop, Prime Minister Christopher Luxon, Clive Mackenzie from Kiwi Property and Simon Shakesheff from Kiwi Property. Photo / Jason Oxenham
Kiwi’s new 295-unit Resido build-to-rent apartments are also beside the Sylvia Park mall, which is across the railway line from Ikea.
Despite the more challenging rental market, the pace of leasing was at the faster end of the expected 12 to 18-month range, at 85% leased in under 12 months.
And it now stands at 88% as of this morning, Mackenzie said.
Resido rents are about 26% higher than Auckland’s median apartment rent.
While still early, initial data from ANZ Research showed that the average Resido resident is spending three times more within the wider Sylvia Park precinct than before they moved in, Mackenzie said.
Kiwi said today that Drury remained early in its development, with foundational work continuing over the year.
Kiwi has made the first sale of large-format retail land to Foodstuffs, striking an unconditional deal last month.
Mackenzie said that is for a New World but the deal would not settle till 2027 or 2028.
But times are tough for such a huge scheme.
Kiwi chairman Simon Shakesheff said: “The economic environment both locally and globally has meant transactions of this nature have taken longer than expected, but it is pleasing to see activity starting to return to the New Zealand property market.
“We are already gaining momentum from this sale and a number of other parties are in advanced discussions to acquire Drury land,” Shakesheff said.
Mackenzie said the company was continuing to develop the site and sell land.
Kiwi’s outlook
Shakesheff said the company’s conviction over its strategy had strengthened.
Kiwi was well-positioned for future growth as the economy recovers and as key macro trends move in its favour.
Mackenzie cited the tougher economic climate in his wider presentations and indicated the company was tightening its purse strings.
“Tight management of operational costs and capital expenditure will continue, with future recycling of non-strategic assets allowing for further investment, in line with our capital allocation framework,” he said.
Kiwi will pay a cash dividend of 1.35 cents per share (cps) for the fourth quarter, bringing the total dividend payment to 5.4cps – down 5.3% on FY2024.
But Mackenzie forecast Kiwi shareholders’ dividends would rise 3.7% to 5.6cps in FY2026.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.
