Kiwi Property Group Ltd has secured an agreement to acquire a 3.2ha property at 79 Carbine Rd & 10 Clemow Drive in Mt Wellington for $27.1 million.
Chief executive Chris Gudgeon said on Friday: “When combined with our existing landholdings on Carbine Rd & Clemow Drive, this acquisition enables us to consolidate a strategic 7.7ha landholding with a road bridge connection to Sylvia Park over the railway line.
“We have no immediate plans to redevelop the land. However, given our world-class town centre vision for Sylvia Park and Mt Wellington’s status as a metropolitan centre, it makes good sense for us as a long-term investor to increase our landholdings in this strategic location. Kiwi Property’s landholdings in Mt Wellington now total over 30ha, including the main 20.4ha Sylvia Park Shopping Centre site.”
Improvements on the newly acquired property comprise a coolstore, industrial buildings, a truck fuel stop and temporary structures for office & storage. The property is leased to 8 tenants, including Fonterra & VINZ, with current passing income of about $1 million/year and a weighted average lease term of 4.77 years.
Mr Gudgeon said Kiwi would fund the acquisition from existing debt facilities. It’s due to settle this Friday, 13 October.
Kiwi already has 3 expansion projects underway at Sylvia Park – a new dining lane, an office building & a multi-level carpark. A fourth development project, comprising a retail galleria expansion & carpark, is in an advanced planning stage.
Attribution: Company release.