Kiwi Property Group

Kiwi Property Group Limited is a New Zealand NZX-listed company, formerly a real estate investment trust, that owns many properties throughout New Zealand; including the Sylvia Park Business and Shopping Centre, and the Vero Centre. It is also New Zealand's largest-listed property fund.

Kiwi Property Group Limited

Trade name	KiwiProperty
Type	Public
Traded as	NZX: KPG
Industry	Real estate
Predecessor	Kiwi Income Property Trust
Founded	1992; 28 years ago
Founders	Ross Green Richard Didsbury
Headquarters	Vero Centre, Auckland, Auckland , New Zealand[1]
Area served	New Zealand
Key people	CEO: Clive Mackenzie
Revenue	$250.8 Million[2] (2015)
Operating income	$89 Million[3] (2015)
Total assets	$2.67 Billion[2] (2015)
Owners	see below
Number of employees	130[3] (2015)
Website	www.kp.co.nz

History

1990s

Kiwi Property was established in 1992 as the Kiwi Income Property Trust as a property trust by Ross Green and Richard Didsbury.

Kiwi Income Property Trust acquired New Zealand Land Limited in 1994; which held a total portfolio of nine properties.

In 1995 Kiwi Income invested $9.75 million into 11.8ha of land in a 'brown zone' area, Mt. Wellington. They further invested another $20 million in 1999 for 9.1ha of land directly adjacent to the north of their existing land. [4]

In 1998 Kiwi Income divested a 50% shareholding in their management company leading to Land Lease investing and becoming a joint-ownership partner of Kiwi Income.[5]

2000s

In 2001, a strategic move lead Kiwi Income to acquire Kiwi Development Trust, the developers and managers of the Royal & Sun Alliance Building which is now known as the Vero Centre.

In 2002, Colonial First State acquired a 100% shareholding in the management company of Kiwi Income, making Kiwi Income a wholly owned subsidiary of Colonial First State.[5]

In 2007 the Sylvia Park Shopping Centre was completed.

2010s

During the 2011 Christchurch earthquake both of Kiwi Income's properties in Christchurch were affected. In the aftermath of the earthquake the Northlands Shopping Centre underwent seismic remediation, and the PricewaterhouseCoopers Tower was demolished; however a $70 million insurance claim was paid out. [6]

Kiwi Income developed ASB North Wharf, the New Zealand headquarters for ASB Bank, with Fletcher Construction completing the development in 2013.

In 2013 a consortium of investors purchased all Kiwi Income shares from Colonial First State; leading to 5 December 2014 vote of which 99.9% voted in favor of a name change and rebranding as Kiwi Property Group, becoming a New Zealand registered company rather than a trust.[7]

In September 2015, Kiwi announced the purchase of Westgate Lifestyle, a shopping complex located in Westgate for $82.5 million.[8] It was also reported that they entered into a joint-venture with Tainui Group Holdings to own and manage 50% of The Base in Hamilton for $192.5 Million.[8]

In October 2017 a deal was signed by Kiwi Property and Meridian Energy to install hundreds of roof top solar panels to harness renewable energy at four of its shopping malls namely Auckland's LynnMall, Hamilton's The Base, Palmerston North's The Plaza and Christchurch's Northlands.[9]

Listings

Kiwi Income was listed on the New Zealand Exchange in 1993 under the ticker code of KIP.

In 2014, after the name change from Kiwi Income Property to Kiwi Property Group, Kiwi Property changed its NZX ticker code to NZX: KPG.

All Kiwi Property shareholders are required to hold a minimum of 200 shares. [10]

Assets

Division	No. of Properties	Net Leaseable Area (sqm)	No. of Tenants	Valuation (millions)
Retail	7	246,496	798	$1,562.3
Office	5	118,026	73	$720.2
Total	12	364,522	871	$2,282.5

Shopping Centres

Sylvia Park and Sylvia Park Lifestyle

Main article: Sylvia Park

Sylvia Park and Sylvia Park Lifestyle are collectively a large business park and shopping centre in the Auckland suburb of Mount Wellington, in New Zealand. Less commonly known, the area around the centre (which includes some residential and other commercial developments) is also called Sylvia Park (the centre takes its name from the area, not vice versa, but Sylvia Park is not officially a suburb). The area is located adjacent to two major interchanges of the Auckland Southern Motorway – the South-Eastern Highway (which passes directly through the shopping centre on a viaduct) and Mount Wellington Highway.

Land and store space in the Sylvia Park development is let out to a wide variety of major retailers, with key tenants including The Warehouse Group, Hoyts Cinemas, Whitcoulls bookstore, H&M, Zara (both opened in October 2016) and Kmart (opened in early 2019)[11][12][13] as well as the Pak'nSave supermarket. In addition, the centre has franchises of all major New Zealand banks and a wide variety of other retailers. The centre employs approximately 2,500 staff.

In a rating of New Zealand shopping centres by a retail expert group in 2008, Sylvia Park received four stars, the maximum rating, based on the criteria of amount of shopping area, economic performance, amenity and appeal as well as future growth prospects. Especially praised were the wide catchment of shoppers and the motorway accessibility

Kiwi Income purchased the Apex Mega Centre located opposite the existing Sylvia Park Shopping and Business Centre in December 2014 for $64 million. After the purchase, Apex Mega was rebranded as Sylvia Park Lifestyle and was subsequently integrated into the Sylvia Park complex; however it still remains a separate shopping complex.[3]

LynnMall

Main article: LynnMall

New Zealand's first shopping centre, LynnMall, has been serving Auckland's western suburbs since opening in 1963. The centre has continued to evolve and is undergoing redevelopment.

LynnMall was acquired by Kiwi Property in early December 2010 from AMP Capital Property for $174 million.[14] The purchase was praised by analysts; including Buffy Gill of Goldman Sachs.[15]

LynnMall underwent a $50 million renovation in 2013.[16] Further expansion commenced in January 2015[17] at a cost of $39 million.[18]

Centre Place

Main article: Centre Place

Centre Place is a shopping centre located in Hamilton. In 2013, the centre was extensively redeveloped, providing a wide mix of high-quality national and international retailers and dining options. The centre is anchored by a Farmers department store and features Lido and METRO by Hoyts cinema complexes. Kiwi Property acquired the asset in three tranches between December 1994 and December 2005.

In 2000, Centre Place underwent a $10 million redevelopment to increase the size of the shopping centre from 65 stores to 85; other additions were a 'mothers room', a 14,000 m² international food-court, and a new 'Lifestyle Precinct'. Development Manager Nick Sharp said in a statement that "We want to put a lot more emphasis in the entertainment and leisure sectors". The build was managed by local construction firm Hawkins Construction.[19]

In December 2015, Kiwi Property sold the newly redeveloped section of the Centre Place shopping centre. Centre Place South was sold to an unnamed New Zealand buyer for $46.7 million.[20]

The Plaza

Main article: The Plaza Shopping Centre

The Plaza Shopping Centre is a shopping mall in the central area of Palmerston North, New Zealand owned by Kiwi Property. It is the largest shopping mall in the Manawatu region and is home to many of New Zealand's favourite brands.

Originally 19,700 m2 (212,000 sq ft), the mall underwent redevelopment from 2008 to 2010 refurbishing the existing space and expanding to 32,000 m2 (340,000 sq ft). Redevelopment was done in three stages. The first stage opened in March 2009 with a new food court, a multi-level carpark and 15 new specialty stores. The second stage opened in September 2009 with an additional 10 specialty stores. The third stage opened March 2010 with the addition of 32 specialty stores, a two-storey 7,200 m2 (78,000 sq ft) Farmers department store and another multi-level carpark.

Northlands

Northlands Shopping Centre is a shopping mall in Christchurch, New Zealand. It encompasses five major tenants (Pak'nSave, The Warehouse Group, Countdown, Farmers Trading Company and Hoyts) and 117 specialty stores equating to approximately 41,000 m² of retail.

In 2003, Northlands shopping centre underwent a $90 million expansion.[21]

Table of details

Property	Year of Ownership	Location	NLA (sqm)	No. of Tenants	No. of Carparks	Valuation (millions)	Notes
Sylvia Park	2007	Auckland	72,130	218	4,002	$605.4	[22]
Sylvia Park Lifestyle	2014	Auckland	16,182	14	393	$64.4	[23]
LynnMall	2010	Auckland	31,853	121	1,216	$248.8	[24]
Centre Place	1994	Hamilton	26,920	104	604	$117.6	[25]
The Plaza Shopping Centre	1993	Palmerston North	32,424	111	1,251	$206.4	[26]
Northlands	1994	Christchurch	41,538	125	1,870	$221.9	[27]
Total		7	246,496	798	10,416	$1,562.3

Office space

Vero Centre

Main article: Vero Centre

Vero Centre and surrounding buildings.

The Vero Centre (constructed as the Royal & SunAlliance Centre) is a high rise office tower located in Auckland, New Zealand. Constructed in 2000, it was Auckland's first major tower built since the 1980s. The centre contains a health club and gymnasium, main entry public foyer, retail outlets in the five podium levels and 32 office levels. As of 2005, it is New Zealand's tallest landmark office tower. It is also known for its 'halo' roof feature.

While atypically tall compared to the surrounding area, its construction is considered to have had a positive effect on the regeneration of the eastern Auckland CBD area. The site had previously been occupied by a number of vacant lots and low-rise buildings, including student accommodation, industrial warehouses and massage parlours.

Table of details

Property	Year of Ownership	Location	Net Leaseable Area (sqm)	No. of Tenants	Valuation (millions)	Notes
44 The Terrace	2004	Wellington	10,123	7	$25.5	[28]
56 The Terrace	2004	Wellington	22,194	(Under Renovation)	$95.4	[29]
The Majestic Centre	1994	Wellington	24,568	19	$99.9	[30]
ASB North Wharf	2013	Auckland	21,625	12	$175	[31]
Vero Centre	2001	Auckland	39,516	35	$324.4	[32]
Total		5	118,026	73	$720.2

Corporate governance

Executive team

Title	Name	Year Joined Group	Notes
chief executive officer	Mr. Clive Mackenzie	2018	[33]
chief operating officer	Mr. Gavin Parker	2002
Head of Strategy	Ms. Rebecca Oliphant	2003
GM of Development	Mr. Ian Passau	2015
GM of Commercial Portfolio	Mr. Michael Holloway	2010
GM of Retail Portfolio	Ms. Linda Trainer	2000
Head of Human Resources	Ms. Kylie Eagle	2011
National Facilities Manager	Mr. Jason Happy	1998
Manager of Analytics & Projects	Ms. Natasha Loulanting	2005
chief financial officer	Mr. Stuart Tabuteau	2006
General Counsel & company secretary	Mr. Trevor Wairepo	2014

Board of directors

Member type	Name	Other Committee Membership	Notes
Non-executive chairman	Mr. Mark Ford	Member of the; Audit and Risk Committee Remuneration and Nominations Committee	[34]
Non-executive member	Ms. Mary Jane Daly	Member of the Audit and Risk Committee
Non-executive member	Mr. Richard Didsbury	Chairman of the Remunerations and Nominations Committee
Non-executive member	Ms. Jane Freeman	Member of the Remunerations and Nominations Committee
Non-executive member	Ms. Joanna Perry	Chairman of the Audit and Risk Committee
Non-executive member	Mr. Mike Steur	Member of the; Audit and Risk Committee Remuneration and Nominations Committee

Shareholders

According to page 97 of the 2015 annual report, Kiwi Property has 1,138,898,858 shares on issue and 12,308 registered shareholders.[3]

The 20 largest shareholders according to their 2015 Annual Report account for 734,677,034 of the total issued shares equaling 64.51% of all issued shares; they are;

Organisation	Parent organisation	Number of shares	Percentage owned	Notes
Accident Compensation Corporation	Government of New Zealand	111,489,219	9.79%	[3]
Citibank Nominees (NZ) Limited	Citigroup	73,811,995	6.48%	[3]
HSBC Nominees (New Zealand) Limited	HSBC Holdings plc	69,973,006	6.14%	[3]
Cogent Nominees Limited	BNP Paribus[35]	61,960,555	5.44%	[3]
National Nominees New Zealand Limited[36]		46,891,457	4.12%	[3]
Guardian Nominees No2 Limited	The New Zealand Guardian Trust Company[37]	41,195,873	3.62%	[3]
Premier Nominees Limited	The New Zealand Guardian Trust Company[37]	40,470,697	3.55%	[3]
HSBC Nominees (New Zealand) Limited	HSBC Holdings plc	36,330,301	3.19%	[3]
Investment Custodial Services Limited	Commonwealth Bank of Australia[38]	36,325,308	3.19%	[3]
FNZ Custodians Limited	Kiwi Holdco Cayco, LTD[39]	35,649,791	3.13%	[3]
Custodial Services Limited	CIP Holdings Limited[40]	29,439,944	2.58%	[3]
Forsyth Barr Custodians Limited	Kensington Swan Holding Limited[41]	25,223,884	2.21%	[3]
Premier Nominees Limited	The New Zealand Guardian Trust Company[37]	23,913,474	2.10%	[3]
MFL Mutual Fund Limited[42]		23,485,692	2.06%	[3]
JPMorgan Chase Bank		22,247,574	1.95%	[3]
Forsyth Barr Custodians Limited	Kensington Swan Holding Limited[41]	15,128,543	1.33%	[3]
Custodial Services Limited	CIP Holdings Limited[40]	11,999,081	1.05%	[3]
Private Nominees Limited	ANZ Bank New Zealand[43]	11,331,155	0.99%	[3]
T.E.A Custodians Limited	Sterling Grace (NZ) Limited[44]	9,799,713	0.86%	[3]
Forsyth Barr Custodians Limited	Kensington Swan Holding Limited[41]	8,009,772	0.70%	[3]
Totals		734,667,034	64.51%

Shareholder composition

Organisational composition

This final tally of all 20 largest shareholders, by total number of shares held, shows the biggest shareholders using the ultimate parent company and/or organisation.

Organisation	Total Shares	Total Percent (%)	Number of Shareholdings	Subsidiary Shareholder(s)	Notes
Government of New Zealand	111,489,219	9.79%	1	Accident Compensation Corporation
HSBC Holdings plc	106,303,307	9.33%	2	HSBC Nominees (New Zealand) Limited
The New Zealand Guardian Trust Company	105,580,044	9.27%	3	Guardian Nominees No2 Limited Premier Nominees Limited
Citigroup	73,811,995	6.48%	1	Citibank Nominees (NZ) Limited
BNP Paribas	61,960,555	5.44%	1	Cogent Nominees Limited
Kensington Swan Holding Limited	48,362,199	4.24%	3	Forsyth Barr Custodians Limited
National Nominees New Zealand Limited	46,891,457	4.12%	1	National Nominees New Zealand Limited
CIP Holdings Limited	41,439,025	3.63%	2	Custodial Services Limited
Commonwealth Bank	36,325,308	3.19%	1	Private Nominees Limited
Kiwi Holdco Cayco, LTD	35,649,791	3.13%	1	FNZ Custodians Limited
MFL Mutual Fund Limited	23,485,692	2.06%	1	MFL Mutual Fund Limited
JPMorgan Chase	22,247,574	1.95%	1	JPMorgan Chase
ANZ Bank New Zealand	11,331,155	0.99%	1	Private Nominees Limited
Sterling Grace (NZ) Limited	9,799,713	0.86%	1	T.E.A Custodains Limited
Total	734,667,034	64.51%	20	15

National composition

According to the 2015 annual report, over 98% of all KPG shares are owned and traded between people in six main nations. They are;

Country	Number of shares owned	Percent of total shares issued	Notes
New Zealand	921,588,114	80.92%	[3]
United States	127,382,690	11.18%
United Kingdom	31,487,340	2.67%
Australia	27,086,896	2.38%
Norway	7,157,068	0.63%
Japan	6,929,393	0.61%
UN Rest of the World	17,267,357	1.52%
Total	1,138,898,858	100.00%

References

1. "Kiwi Property Group Company Profile". Business.govt.nz/. Ministry of Business, Innovation, and Employment. 16 December 2015. Retrieved 9 January 2016.
2. https://s3-ap-southeast-2.amazonaws.com/kiwiproperty/uploads/KPG017-AR2016_lowres-FINAL.pdf
3. Kiwi Property Group (2015). 2015 Annual Report (PDF) (Map) (2015 ed.). New Zealand: Kiwi Property Group. Retrieved 31 December 2015.
4. New Zealand Herald (30 June 2000). "Sylvia Park to be transformed". New Zealand Herald. p. 1. Retrieved 3 January 2016. The wheels are set in motion for redevelopment of an old 'brown' zone, as BOB DEY reports
5. "Our history – Kiwi Property". Kp.co.nz. 20 June 2014. Retrieved 6 April 2016.
6. NZ Herald (5 August 2014). "Auckland Mall expansion planned by Kiwi". New Zealand Herald. p. 1. Retrieved 2 January 2016. Country's biggest listed landlord looks at adding entertainment precinct at LynnMall and offices at Sylvia Park.
7. "Kiwi Income unitholders overwhelmingly approve corporatisation | The National Business Review". Nbr.co.nz. 15 December 2014. Retrieved 6 April 2016.
8. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11639616
9. "Kiwi Property is tapping into sun-power with 672 solar panels at Northlands Mall".
10. Herald on Sunday (3 May 2015). "Consumer Watch: Commercial deals a good bet". New Zealand Herald. p. 1. Retrieved 3 January 2016. Syndicates a less costly way to get a piece of the real estate action.
11. "Countdown out, Kmart in to half-hectareSylvia Park store". Nzherald.co.nz. 8 October 2018. Retrieved 2 December 2018.
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14. Susie Nordqvist (2 December 2010). "LynnMall gets new owner in $174m deal". New Zealand Herald. p. 1. Retrieved 3 January 2016.
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