Close eye on Sylvia Park risks
Investors will cast a close eye over the development risk that New Zealand's biggest listed property vehicle, Kiwi Income Property Trust, is taking at Sylvia Park in Auckland.
Thursday, May 19th 2005, 7:11AM
by The Landlord
Announcing its bottomline profit yesterday - an increase of 7.3 per cent on the previous year - the trust said it would "at this stage" retain 100 per cent ownership of stage one of the development.Stage one - the retail part - will include a 62,000sq m shopping centre and cost $363 million.
That compares with the trust's assets of $1.26 billion.
Angus McNaughton, the chief executive of Kiwi's management company, said the development would be part-funded with an issue of $110 million to $140 million of mandatory convertible notes.
The issue is likely to open early next month.
The company would also use existing debt facilities and the proceeds of the sale of the AUT Building.
McNaughton said some shareholders would be concerned by the level of development risk at Sylvia Park but he thought they would be reassured by measures including:
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