Sylvia Park expansion leads to hints of new international retailers

Wednesday, 28 February 2018

It was a bonanza for new brands here last year but there will be fewer big names in 2018.

The owner of New Zealand's biggest shopping mall is in talks with international retailers yet to set foot in the country.

Kiwi Property announced on Wednesday it has been given the green light to start work on its $223 million expansion of Sylvia Park, Auckland.

The expansion, called The Galleria, will have space for 60 retailers, which will be a mix of national and international retailers.

Artist's impression of new expansion at Sylvia Park to be called The Galleria.

But while Kiwi Property remains tight-lipped on who might be moving in, retail analyst Chris Wilkinson says it could be anyone from Australia's controversial lingerie brand Honey Birdette to UK department store Debenhams.

**READ MORE:

* Farmers promises a flagship store at Sylvia Park

* Which international brands will set up shop in NZ this year?**

Debenhams opened its first Australian store last October, but will the British retailer open in New Zealand?

'[They] will be targeting upcoming Australasian brands, and likely reaching further, possibly to the UK, as there are some exciting concepts emerging from there, which are keen for further international expansion,' Wilkinson said.

Kiwi Property retail leasing manager Aubrey Cheng said there had been 'strong tenant enquiry', including enquiries 'in-demand international retailers, some of whom, if secured, would be new to the New Zealand market'.

Sylvia Park has more than 200 retailers, including New Zealand's only Zara store, a flagship H&M store, as well as Seed, Adairs, Kiehls, Country Road, Hoyts Cinemas, Pak 'n Save, and The Warehouse.

Once complete, The Galleria will be home to a new two-level Farmers department store, and new international brands and concept stores, including retailers from Sylvia Park's waiting list of specialty tenants.

The development will also include a new dining precinct, and a multi-storey car park, which will offer 900 car parks and have direct access to The Galleria.

The new car park will take the total number of car park spaces at the centre to 5000.

Work is set to begin in March and is expected to be completed by mid-2020.

Wilkinson said Sylvia Park was 'becoming, essentially, a town centre in its own right', with offices, public amenities, a dedicated transport hub, and other features you would find in typical towns or cities.

'This differentiates from places like [Auckland's] Newmarket, where the centres are part of a wider town centre offer, [but] not the offer.'

Earlier this month, Scentre Group announced it was pouring $790 million into the redevelopment of Westfield Newmarket.

This redevelopment includes Australian department store David Jones, a new format Farmers department store, and more than 230 specialty stores.

Wilkinson said it would be 'very much cat and mouse' with Sylvia Park and Westfield Newmarket.

'Each mall will be pitching for similar consumers, an edge they can call their own, and differentiation in retailers (particularly anchors).

'David Jones announcing in Newmarket was the first indication of that differentiation.'

Scentre Group would likely target global luxury brands for Westfield Newmarket, while Kiwi Property would more likely target upcoming Australasian brands for Sylvia Park, Wilkinson said.

Brands likely to be a good fit for Sylvia Park were Honey Birdette, a controversial Australian brand which sells provocative lingerie and luxury bedroom accessories; COS, a Swedish clothing chain which is part of H&M; Wanted Shoes, an Australia shoe chain with a mix of own label and branded footwear; Debenhams, a British retailer which operates department stores in the UK and Ireland; and Barber Industries, an Australian barbering chain, he said.

Kiwi Property chief executive Chris Gudgeon said the company was positioning the centre for the future, by constantly evolving its retail mix focussing on 'high performing stores and in-demand retailers'.