Sylvia Park Lifestyle sale unlocks more capital for Kiwi Property

Monday, 10 November 2025

Kiwi Property has sold one of the properties in its Sylvia Park precinct to a new big box retail property fund.

Kiwi Property Group has entered into a conditional agreement to sell one of the properties in its Sylvia Park Precinct to Mackersy Property Limited for $90 million.

Sylvia Park Lifestyle is a big box retail property close to Sylvia Park shopping centre in Auckland. It has 16 tenants, and is part of NZX-listed Kiwi Property’s mixed-use community around the mall.

On completion of the sale, the property will become the initial seed asset in a new big box, or large-format retail fund to be established by Mackersy Property - a New Zealand-based commercial property investment and management firm with assets under management of $2.2 billion.

Hamish Wilton, chief executive of Mackersy Property, said large format retail was a class of assets that tended to be resilient in all market conditions. It was entering a new phase of renewed momentum, driven by monetary easing and investor confidence.

“We are pleased to be creating a new fund for wholesale investors to have the opportunity to invest in large format retail,” Wilton said.

Mackersy’s relationship with Kiwi Property enabled the firm to secure the sale, which was conditional on a capital raise by the new fund, which was expected to be satisfied by December 19, he said.

Kiwi Property invested in Mackersy Property with a $6.5m convertible loan in November last year.

When the loan is converted to equity in Mackersy, which is expected in December, the arrangement will see Kiwi Property become a 50% owner in the firm.

Kiwi Property head of corporate finance and investor relations Fraser Gunn said the sale of Sylvia Park Lifestyle would unlock capital for the company.

The idea was to sell into the new fund and release between $52.9m and $65.3m cash, depending on the level of equity underwrite required, he said. Kiwi Property will also underwrite a further 25% of the units in the fund.

Proceeds from the sale will be used to fund some of Kiwi Property’s projects, chief executive Clive Mackenzie says.

“Long-term, the intent is to grow the fund over time. That will include adding suitable large format retail assets with external partners, and potentially new assets from Kiwi Property.”

Kiwi Property chief executive Clive Mackenzie said the sale demonstrated the benefit of the investment in Mackersy as it provided a new source of capital to support the company’s strategic objectives.

“Proceeds from the transaction will be used to fund some of the company's development projects and provide further balance sheet flexibility.”

He said retaining a significant stake in the new fund meant Kiwi Property could leverage its retail management and leasing capabilities to drive the performance of the asset on behalf of investors.

It would also release capital to reinvest in the company’s mixed-use assets, and might provide a source of capital for future big box developments at existing Kiwi Property sites, he said.

Kiwi Property is one of the country’s biggest retail and office landlords, but in recent years it has expanded into mixed-use and residential build-to-rent developments, with the aim of building “connected communities” around its shopping centres.

The Sylvia Park precinct also includes two office buildings and the company’s flagship build-to-rent development Resido, which has 295 apartments.

It is also home to Swedish furniture giant Ikea which will be opening its first New Zealand store on December 4. Ikea purchased the site adjacent to the shopping centre from Kiwi Property in 2021.