Kiwi Property directors discount fears of shopping mall decline.

Friday, 28 July 2017

Chris Gudgeon, retiring chief executive of Kiwi Property about to enjoy a cup of tea with shareholders at the annual meeting in Christchurch.

Kiwi Property Group is refining its retail offering with an emphasis more on 'experiential' retailing such as food and services and less on fashion retailing.

Chairman Mark Ford told shareholders at the annual meeting in Christchurch the Stock Exchange-listed company was keeping on top of changing trends and the challenge of online trading.

Kiwi Property Group chief executive Chris Gudgeon will leave the company in September 2018 after 10 years with the company.

He also discounted a shareholder's concerns about US shopping centre closures because that country was over-shopped by four to five times compared with New Zealand, he said.

The company was embarking on more expansion at Auckland's Sylvia Park Shopping Centre and was reviewing redevelopment of Northlands Mall in Christchurch.

* Kiwi Property secures land in south Auckland's Drury for 'town centre'

* Rents ahead but value growth slower for Kiwi Property**

Ford said projections for New Zealand indicated considerable growth in the years ahead.

'Our focus in the year ahead will be to progress our town centre vision at Sylvia Park, continue our planning for medium-term potential redevelopment at Northlands and The Base (Hamilton), and in the longer term at Drury (south Auckland),' Ford said.

None of the 50 or so shareholders at the Hagley Cricket Oval questioned a lift of the directors fee pool from $700,000 to $737,000, a 2.4 per cent increase since last year's rise.

The meeting is one of the last addressed by chief executive Chris Gudgeon who will step down after 10 years in the job.

Meanwhile, Ford highlighted the company's focus on increasing the value of its $3 billion portfolio of shopping centre and office properties.

He announced a forecast increased in the 2018 annual dividend of 6.85 cents per share, up from 6.75c a share.

In addition to Kiwi's shopping centre investments, Ford said the company's office buildings in Auckland and central Wellington were wel leased with the redeveloped Aurora Centre and 44 The Terrace fully tenanted.

Kiwi is one of the largest property companies in New Zealand.