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Kiwi Income Property Trust buys LynnMall for $174m

Listed Kiwi Income Property Trust has purchased West Auckland's LynnMall shopping centre for $174 million from AMP Capital Property.

The 1963 built mall has 110 tenants including Farmers, Whitcoulls, Hallensteins, House of Travel and a variety of eateries.

At the moment 99.6% of the shopping centre's 30,661sq m is tenanted.

The purchase will be funded by debt, raising Kiwi Income Property Trust's net gearing by 6% to 31%.

"LynnMall provides us with an opportunity to apply our proven active asset management model to improve the centre's attractiveness and competitiveness to shoppers and tenants alike.,” Kiwi Income Property Trust chief executive Chris Gudgeon said.

"In acquiring this asset, we have already identified potential opportunities to enhance the centre and its retail mix by drawing on our extensive network of national and international retailers,”

This adds to the trust's existing shopping centre assets including Sylvia Park, Centre Place in Hamilton and The Plaza in Palmerston North.

The transaction is expected to settle on December 31 and will need Overseas Investment Office approval.  

More by Jazial Crossley

Comments and questions
4

The debt % is lifting *by* 6% not *from* 6% as per original NZX / Businesswire report.

Not sure this was such a smart move. One would imagine, the redevelopment of St Lukes will be at the expense of smaller malls in time.

Time will tell. I wont be buying Kiwi Income Property Trust shares at current prices anytime soon.

As Sir Bob Jones says "buy when AMP are selling"... well done Chris.

What the the equiq yield?