Kiwi Property buys new Westgate shops for $82.5m

NZRPG's Mark Gunton pictured in 2013 when the Westgate development was about to begin. The shopping centre - due to open in March next year, has just been sold to Kiwi Property Group. Photo / Chris Gorman

Kiwi Property Group, the country's largest listed property investor, has paid $82.5 million for the Westgate retail centre in Auckland being developed by New Zealand Retail Property Group.

The 25,500 square foot (7770 sqm) shopping centre, known as Zone 7, has 87 per cent of pre-committed lease agreements with a weighted average lease term of 8.1 years, the Auckland-based company said in a statement. The new Westgate centre is due to open in March next year with 28 shops and 622 car parks.

The purchase comes after Kiwi Property bought the Apex Mega Centre in Mt Wellington in Auckland for $64 million last December as it expands its retail footprint. In June, the company raised $151.9 million from shareholders via a one-for-nine entitlement offer.

"This acquisition is consistent with our strategy of growing our Auckland retail sector exposure, specifically in dominant regional centres and large format retail locations favoured by the Proposed Auckland Unitary Plan," said chief executive Chris Gudgeon.

"Westgate is a Metropolitan Centre under the Unitary Plan and we believe it will emerge as one of Auckland's favoured retail destinations, particularly for large format retail, with very positive attributes in terms of population growth, household formation and motorway accessibility."

The shares fell 0.4 percent $1.305 and have gained 6.4 percent since the start of the year.