Kiwi Property invests $18.8m in Christchurch Northlands shopping centre expansion

Friday, 24 November 2017

An artist's rendering of expansion plans for Northlands Mall in Christchurch.

Kiwi Property will start work on its $18.8 million entertainment development at the Northlands shopping centre in Christchurch in January.

The precinct has been named Langdons Quarter and is expected to open in October next year.

The mall's upgrade will cost Kiwi Property $18.8m.

Manager of shopping centres Shelley Jenkin said the expansion towards Main North Rd would create space for two large restaurants, a new entrance way and pedestrian access to the south-western carpark, a refurbishment of existing toilets and some smaller retail spaces.

Langdons Quarter will replace 29 car parks with a new 'winter garden' food court beneath the existing cinema complex.

The precinct will include $6.8m in earthquake strengthening. Greenery will cover the steel beams.

Kiwi Property boss Chris Gudgeon will retire a month before the Northland expansion is expected to finish.

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The project will also include $6.8m of earthquake strengthening work to add steel structure to the building.

Northlands shopping centre manager Vicki Bain said, the steel would be used to create an 'industrial aesthetic' to the design, while planting would provide a sophisticated feel to the precinct.

The shopping centre is the second-largest in the South Island, after Westfield Riccarton and valued at $448.5m.

Kiwi Property chairman Mark Ford said the company's retail and office assets were in high demand and performing strongly.

The company's $8.9m food court 'The Grove' in Auckland's Sylvia Park mall was due to open in December.

Kiwi Property was also building a $36.3m carpark at the mall, a second-level galleria expansion, and is working to lease the remaining space in its 'No. 1 Sylvia Park' office building above the mall.

Chief executive Chris Gudgeon, who is stepping down in September 2018, said the company would lock in construction costs before proceeding with the development.

Kiwi Property has It also bought purchased adjoining land to Sylvia Park as a 'long-term strategic holding'.

The company has also earmarked land in Drury, South Auckland as part of a larger Drury/Opaheke precinct development, but has yet to secure a 'town centre' zoning for the property.

The company has seen more muted gains so far this year on the back of massive sales and upgrades to trophy assets.

Kiwi Property reported a profit of $47.9m for the half year to September 30, up $2.3m on the same period a year ago.

The company announced the sale of the Majestic Centre, Wellington's tallest office building, last week for $123m to a South African investment fund. The sale is due to settle next month.

It is the largest commercial sale in New Zealand so far this year.

Kiwi Property spent $83m earthquake strengthening the Majestic Centre over nearly four years.

The building's tenants include the Earthquake Commission, EY financial consultants, and the Japanese Embassy.

Kiwi Property has also put the North City shopping centre in Porirua up for sale.

The company's assets were valued at $3.1 billion, up $100m on a year ago.

* A previous version of this story incorrectly stated that Langdons Quarter will replace 130 car parks.