Wellington office a star performer
The value of some of Kiwi Property’s retail properties has fallen but its office properties all gained on value.
The listed property investment company experienced an overall average fall in its shopping centre values of just 1.2 per cent.
However, some individual centres fell significantly. Hamilton’s Centre Place North took the biggest fall at 11.7 per cent to $59 million.
Declines of nearly 7 per cent in value were recorded at The Plaza in Palmerston North, North City Porirua, and Northlands in Christchurch.
But Sylvia Park Shopping Centre in Auckland took the biggest rise of 4.7 per cent to $74m, and smaller rises were posted at LynnMall and Westgate in Auckland, and The Base at Hamilton.
The value of Kiwi’s office buildings was up 1.1 per cent overall, with the star performer being 44 The Terrace in Wellington, up 11.8 per cent to $49m.
ASB North Wharf and Vero Centre took rises of 5 per cent and 7 per cent respectively to $209m and $420m, and the Aurora Centre at 56 The Terrace also rose in value 7 per cent to $152m.
Collectively the values took the total portfolio to just over $3 billion for the year ended March 2018.
Chief executive Chris Gudgeon said Kiwi Property’s portfolio had benefited from generally positive property market conditions.
New leasing deals, developments, and strong sales at the Auckland shopping centres, and tenant demand for office properties increased the values.
The increases were partially offset by the cost of seismic strengthening activities, predominantly in Wellington, and related increases in insurance costs.
The weighted average capitalisation rate for the investment portfolio firmed 27 basis points to a record low of 6.10 per cent.
Gudgeon also announced the appointment of Linda Trainer to the position of general manager of the retail portfolio. She will have overall responsibility for the strategic and operational aspects of the retail portfolio and optimising its investment performance.
Trainer brings 20 years of experience in property, retail, management and marketing. She was most recently at Scentre Group, with overall operational responsibility for Westfield shopping centres in New Zealand.
Kiwi Property also recently gave the green light to a $223m Galleria expansion at Sylvia Park, which it has been developing over the past decade.
The expansion will add about 60 new retailers and 18,000 square metres of shops.