Want to live at Sylvia Park?
Big retail and office landlord and developer Kiwi Property is pushing ahead with its mixed-use strategy, planning development of another office tower, a hotel and maybe also apartments for rent at its Sylvia Park mixed-use development.
Traditionally an office and retail landlord, Kiwi Property has adopted the new strategy to lift income by intensifying development of existing assets and properties.
Kiwi Property said it was progressing concepts for more mixed-use development at Sylvia Park, since completing its first office building there, ANZ Raranga.
The building was fully tenanted and good demand has been signalled for a second office tower. There was potential for a
15,000square-metre office and a
140-room hotel.
It had received strong interest from office tenants and international hotel operators and was targeting construction from the end of next year.
Kiwi Property said analysis suggested strong potential demand for build to-rent (BTR) accommodation.
Initial design was underway for a 150-250 residential apartment complex.
The company has reported its half-year profit of $36.8 million, a drop of 24 per cent from $59.6m in the previous half-year, due to a
$12.9m loss in the value of its interest rate swaps, following interest rate falls.
By the same token interest rate falls were having a favourable impact on the company’s average cost of debt, Kiwi Property
chief executive Clive Mackenzie said.
In the six months to September 30, the company’s total rental growth had been a solid 4.6 per cent, maintaining the momentum from the previous period. ‘‘The demand for space at leading mixed-use and retail locations, as well as premiumgrade office buildings, is driving solid rental growth.
‘‘New leases and renewals were particularly pleasing, with mixed-use up 14.1 per cent, office up 8.5 per cent and retail up 0.8 per cent,’’ Mackenzie said.
Net rental income was down marginally from last year to
$89.6m because of the sale of North City, Porirua, in the previous first half.
But on a like-for-like basis net rental income rose $1.8m or
2.1 per cent. Like-for-like net rental income excluded the sale of North City, the impact of Sylvia Park’s Galleria and new rental income from ANZ Raranga.
Retail sales at its properties rose 2.1 per cent to $1.71 billion, including traditional shopping centre sales rising 2.3 per cent to $1.54b.
Specialty sales productivity improved to $11,400 a square metre up from $11,000 in March.
At the half-year its property portfolio was 99.4 per cent occupied with a weighted lease expiry of 5.1 years. The value of its portfolio rose $100m to $3.3b.