I guess you could argue that Sylvia Park was the 'beginning of the transition' of KPG becoming a property developer. Perhaps you could argue that the tipping point was when they changed their ticker from KIP (Kiwi Income Property Group) to KPG (Kiwi Property Group). I can't recall exactly when this happened. I do recall eyebrows being raised with the idea of building a mega mall in an industrial area of nowhere. That Sylvia park has been such an operational success is a great credit to KPG management. Whether it has been a great success for unit holders is another matter, with both the share price and dividend income from KPG reducing.
Back in 1995, Kiwi Income Property Trust was just that: an income generating company for unitholders. There was a much larger geographical spread of shopping malls and office towers owned. The emphasis was on managing existing properties for commercial tenants. The current business model is entirely different to that. KPG are now down to just 3 sites (other peripheral holdings are on the sell off block), and the emphasis has changed to building whole of life needs of people in one location, which includes jobs and long term rental accommodation. These kind of projects have 'execution risk' that pure property owners do not have. I am not saying it is wrong or necessarily unfavourable to go down this new path. I am saying it puts KPG in a different category to SPG, IPL, GMT, PFI, ARG, VHP and PCT, the other members of the property 'big eight'.
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