KPG buys shopping centre

Kiwi Property Group has agreed to buy Auckland’s Apex Mega Centre in its first acquisition since corporatisation.

Monday, December 22nd 2014, 12:00AM

by The Landlord

KPG was formely the Kiwi Income Property Trust.

It announced today it had agreed to buy the large-format retail centre opposite Sylvia Park for $64 million, to be settled today.

It has a projected 10-year internal rate of return of 9.12%.

KPG chief executive Chris Gudgeon:  “This is a logical opportunity for us to control and add value to a bulky goods retail offer on a high-profile landholding immediately opposite our own flagship retail asset, Sylvia Park.”

The site anchored by Spotlight, Freedom Furniture and Torpedo 7. It is fully occupied with a weighted average lease term of 5.13 years.

The acquisition will be funded from existing debt facilities.

Kiwi Income Property Trust today converted its units into shares in KPG and began trading on the NZX.

Gudgeon said:  “With the overwhelming support of our investors, corporatisation has now been successfully effected to provide the benefits of cost savings, a streamlined structure and greater protections for our investors under the Takeovers Code and the Companies Act.”

Unit holders have become shareholders in Kiwi Property and the former manager of the Trust, Kiwi Property Management Limited, has been amalgamated into this company. The board and management team of the former manager have become the board and management team of Kiwi Property.

Gudgeon said: “As a result of our corporatisation, we’ve been able to refresh our brand to better reflect who we are today, 21 years young and the largest listed property company on the NZX.”

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