KEY POINTS:
Sylvia Park was once dubbed Spooky Park by retailers disenchanted by last year's slow trading start.
Now, the centre has earned a new nickname: Can't-get-a-park.
About 150 unit holders went to Kiwi Income Property Trust's annual meeting in the large-screen Hoyts cinema at Sylvia Park yesterday. Some complained
about the lack of disabled parking.
Angus McNaughton, chief executive of Kiwi's manager, said parking was an issue at the centre, which had been extremely popular during winter after its final stage was opened.
For the past 11 weekends, the centre's 3200 parking spaces had been at capacity during peak trading, McNaughton said.
The 500 to 600 people who worked at the centre were now being encouraged to get there by bus or train in an attempt to free up spaces, he said after the meeting. Kiwi had also given away multi-trip train tickets to encourage more use of the new station on the centre's boundary.
Help could be at hand soon.
McNaughton hopes extra carparks can be built to meet demand. Up to 600 carparks could be added to the centre when two large office blocks are built.
He said those extra spaces would be used during weekdays but would be free for shoppers on the weekend.
But just when the office blocks will go up is an issue. Tenants want to shift during the next year to 18 months.
But McNaughton said they would take more than two years to build.
Sylvia Park has been valued at $422.7 million.
The board projected the trust's annual distribution would rise from 8.3c per unit in the March 2007 year to 8.8c per unit in the next year.
The trust owns properties valued at $1.92 billion, up $481 million on the portfolio value a year ago.
Its units have net tangible assets a share (NTA) of $1.74 yet they closed yesterday steady at just $1.46, a point questioned by one investor who asked why the market was putting a lower value on the units.
Sean Waring, chairman of the trust's manager, said the market valued the units. In his outlook for the coming year, he said rising interest rates were a worry but the board remained optimistic.
"Property sector fundamentals are expected to remain sound, despite the higher interest rate environment.
"The outlook is for continued strong demand for both office and retail space and for the continued dominance of the trust's assets at the top-end of the market," Waring said.
McNaughton said he was constantly asked what Kiwi's next big project was. He said the trust owned The Plaza, a shopping centre in Palmerston North, which could be doubled in size.