Kiwi Property profit drops 77% as writedowns hit half-year result

Operating profit before tax rose 11.5% to $62.9m, reflecting income growth and disciplined cost management, the statement said.

Last year’s opening of Resido apartment complex in Mt Wellington. From left, Hauauru Rawiri of Ngati Paoa, Housing Minister Chris Bishop, PM Christopher Luxon, Clive Mackenzie from Kiwi Property and Simon Shakesheff from Kiwi Property. Photo / Jason Oxenham

An interim dividend at 2.80cps is up 3.7%.

The company listed business highlights as including:

ASB extended North Wharf lease in July for a further nine years;Resido apartments at Sylvia Park 99% leased;Vero Centre occupancy up to 94.3% from 92.4%; Shopping centre sales up 0.2%, foot traffic up 1.1%;Kiwi’s loan to Mackersy Property converts to a 50% equity stake next month;Kiwi sold Mackersy its Sylvia Park lifestyle centre opposite Sylvia Park.

The new over-railway line walkway between Sylvia Park and Ikea is now open.

The highly anticipated opening of Ikea adjacent to Sylvia Park on December 4 is expected to act as a significant drawcard to the precinct.

Ikea opens beside Sylvia Park next month. Photo / NZME

A short walk via a pedestrian walkway from level one of Sylvia Park gives a seamless integration of the two sites.

“We anticipate that the opening of Ikea will drive additional consumer activity and reinforce the long-term value proposition of Sylvia Park,” the company said.

This month, Mackenzie and Costco country manager Chris Tingman made a joint statement about New Zealand’s second Costco being built at Drury.

“Kiwi Property has reached a conditional agreement with Costco Wholesale to sell the retailer 6.4ha of land at its new Drury development, paving the way for New Zealand’s second Costco store,” they said.

Kiwi at Drury in May – a site is being prepared to be sold to Foodstuffs for a New World supermarket. Photo / Kiwi Property Group

Kiwi is spending hundreds of millions on a new town centre at Drury, where the American-headquartered retailer is to be its trump card after the same NZX-listed entity brought Ikea here.

Mackenzie referred to the success of Costco opening at Westgate on September 28, 2022.

Kiwi has also sold Drury land for a Foodstuffs supermarket.

On Friday, Swiss chocolate retailer Lindt opened its third New Zealand shop at Kiwi’s Sylvia Park, after opening at Auckland Airport’s Mānawa Bay retail outlet centre and Queenstown.

The new Mt Wellington store will offer the full Lindt experience, the company said, citing 16 million customer visits annually to Sylvia Park.

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.

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