The Base must have a large area of undeveloped land, that has HUGE future potential for medium and high density housing. The base has enough commercial property. Tainui won't be in a rush since they have their hands full at the inland port
Printable View
The Base must have a large area of undeveloped land, that has HUGE future potential for medium and high density housing. The base has enough commercial property. Tainui won't be in a rush since they have their hands full at the inland port
Habits: Last years investor day presentation had some good data for you to peruse:
http://nzx-prod-s7fsd7f98s.s3-websit...335/378420.pdf
At that time Sylvia Park was at 34 hectares, LynnMall 7 hectares, Drury 53 hectares (Drury land purchased for $54.9m). Thats 94 hectares combined, so presumably the rest is The Base.
At Mar 31st tis year, there was still $94m capex remaining budgeted for Drury stage 1 earthworks. Stage 1 is 18 hectares (of the 53 hectares total), and by itself stage 1 developed land is worth $205m.
$94m is still a fair bit of near term spend, can see why they are keen to fund that from other asset sales recently completed or about to be. But the KPG Drury plan is for development to occur over 20 years (!).
BusinessDesk article.
Forbar says listed real estate stocks outperforming the broad market and probably will continue to do so for a while.
But Kiwi not one of their top picks -
Forsyth Barr's top listed property bets are CBD office developer Precinct Properties, diversified investor Asset Plus and residential group Winton Land as the market moves into the next earnings cycle.
KPG not going to remain unloved is it …surely not.
https://businessdesk.co.nz/article/p...estate-winners
Aurora Sale not completed!
============================
Aurora Centre sale update
1/9/2023, 10:20 am GENERALKiwi Property has today advised that the terms for the conditional sale of the Aurora Centre in Wellington have not been met and the transaction will not proceed at this time.
============================
Interesting. This will be a double edged sword for KPG.
Obviously they had a plan to de-risk out of seismic locations (Aurora Centre was one of only two assets south of Hamilton, the other being the plaza in Palmerston North), so this delays that plan. And also were looking to recycle funds for capital projects, so now either gearing increases slightly more than planned, or some capital projects are deferred.
Now on the positive side, this will increase cashflow & earnings for the current period to be higher than planned: Aurora Centre generated ~$9m in net operating income last year.
To be honest I was a little unimpressed at the sale price that was negotiated (a big discount to book value) considering it has a very long term government tenant for the building. I was happy they were getting out of Wellington though.
Best case scenario is they instead hang on to it for 2-3 years and sell it at a much better valuation once the interest rate cycle has reversed.
"Swedish home furnishing giant Ikea has completed the purchase of the land and site at Sylvia Park where its first New Zealand store is expected to open in late 2025.
Ikea New Zealand today announced the purchase from owner Kiwi Property Group of the 3.24 hectare site where construction began in June this year."
https://www.nzherald.co.nz/business/...HVDNWL45UT5FA/