"The current retail offer will be expanded through the development of a new Reading Cinemas multiplex on a 15-year lease, complemented by a new dining precinct called The Brickworks, and additional specialty retail."
Mr Gudgeon said expansion in the area was the reason Kiwi was moving now.
"The LynnMall redevelopment is a response to shopper demand and positive growth in the centre's catchment area. We are pleased to be bringing cinemas back to New Lynn after a 14-year absence."
Kiwi said resource consent had been obtained and construction was due to begin in January, with completion targeted for November.
"Since acquiring the centre in 2010 for $174 million, the trust will have invested a further $45 million (including this latest $36 million project), bringing its total investment in the centre to $219 million.
Kiwi Income Property Trust has owned the mall for four years and has been planning changes for some time.
"The projected value of the centre on completion of this latest value-adding development is expected to be $262 million, with a projected incremental income yield on cost of approximately 7 per cent," the Kiwi statement released to the NZX said.
Reading operates eight cinemas in New Zealand, four in each island: Wellington, Napier, Porirua and Rotorua in the north and Dunedin, Invercargill, Queenstown and The Palms in Christchurch.
Derek Battersby, a member of the Whau Local Board, said the announcement was a shot in the arm for the area. "New Lynn will became the entertainment hub of the West. This will give it a huge boost."
Smartening up
*Expansion and upgrade of New Lynn's shopping mall
*Cinema chain Reading will also be part of the development
*Cinemas haven't been in New Lynn for 14 years
*Retail will be expanded and there will be a new dining precinct called The Brickworks
