Kiwi Property turns Sylvia Park into '20 minute city'

Saturday, 10 June 2023

New Zealand’s largest shopping mall, Sylvia Park in Auckland, is being transformed into a “20 minute city”, and more such centres are planned, the mall’s owner says.

Kiwi Property Group was one of the country’s biggest retail and office landlords, but it was expanding into mixed-use and residential build-to-rent developments, and Sylvia Park was first on the list.

At Sylvia Park there was already 106,427sqm of retail space and about 250 shops, and an office building, ANZ Raranga, but a new office building, 3 Te Kehu Way, would be opening shortly.

The precinct would also soon be home to the publicly listed company’s first build-to-rent development. It would have 295 apartments, and was scheduled to be ready for tenants in June next year.

Kiwi Property chief executive Clive Mackenzie said the company was on a mission to create connected communities around some of its shopping centres in key transport nodes.

A connected community revolved around the “20 minute” city model, where everything people needed to lead their life was in a 20-minute walking or cycling radius, and people were less reliant on cars, he said.

“Sylvia Park is being developed into a multifunctional hub where work, home, shops, entertainment, and healthcare will all be accessible by foot, bike, or public transport.”

The mall’s location close to a train station, bus interchange, and the motorway made it the prime location for the development, he said.

“It is already an attractive shopping destination, with good connectivity back into the community, but in the new office building there will now be a medical precinct, and a large co-working space run by Regus.

“With the build-to-rent development, Sylvia Park will become a mixed-use town centre, and will enable more people to work close to home.”

The trend towards compact, walkable communities was a global trend that had accelerated during the Covid pandemic, Mackenzie said.

“It allows for the revival and recreation of the old town centre which brought people together to live, work, and play. “

Kiwi Property would be developing mixed-use town centres on its land holding in Drury in south Auckland, and at Lynn Mall in New Lynn in west Auckland.

The company would also be working in partnership with Tainui Group Holdings on similar projects at The Base and Centre Place retail outlets in Hamilton.

Build-to-rent projects would be a big part of Kiwi Property’s future development, Mackenzie said.

A 200-apartment build-to-rent tower was planned for New Lynn, and the company saw scope to develop 1200 build-to-rent apartments around Auckland over the next 10 years.

Global workspace provider Regus is one of the tenants in Sylvia Park’s new office building, and the company’s country manager, Alexander Sykes, said there was an increasing shift towards mixed-use precincts and the “20 minute city” concept.

Hybrid work, which was cheaper and more flexible for companies, meant more businesses were swapping central city locations for suburbs, he said.

“This has led to a new future for town centres, which can offer not only retail outlets, but also essential services and leisure amenities to local residents.

“It offers workers and residents improved work-life balance, where they can spend time previously dedicated to commuting on doing activities that enrich their lives.”

These trends and the increase in hybrid working meant Regus planned to accelerate the growth of its network across New Zealand to meet the demand, he said.

“Sylvia Park is a desirable area with a thriving local community. It’s precisely the type of area that is set to soar with the continued popularity of hybrid working.”

Swedish furniture giant Ikea had also just started construction on its first New Zealand store at Sylvia Park, and it was expected to open its doors at the end of 2025.

Mackenzie said it would add to the attraction of the town centre.