Source: Radio New Zealand
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Listed property 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 a yet-to-be established fund, 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 percent of the units and underwrite another 25 percent, giving it up to 75 percent of the fund, while receiving between $52.9 million and $65.3 million 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 16,500 square metres 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 percent stake in December 2025.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand