Sylvia Park will be worth $1.12 billion after an expansion just approved by its owner's board allowing for 60 new shops, a huge new Farmers department store and more carparking at the Auckland regional retail mall.
"The projected value of Sylvia Park on completion of the Galleria project has been assessed by independent valuer CBRE at $1.12 billion," owner Kiwi Property announced today.
How Sylvia Park's new Galleria could look once finished.
Chris Gudgeon, Kiwi chief executive, said the board had approved the $223m galleria retail expansion, taking the mall's value to $1.12b and a spokeswoman said resource consent had been granted by Auckland Council.
Changes will bring new retailers from here and overseas, create a two-level 8100sq m Farmers, see new international brands open, unveil a new cafe and dining precinct as well as a multi-deck carpark with a further 900 carparks.
The elevator stairs up to level one near Zara will be moved and Farmers will be on the ground floor and level one, above the main interior shopping strip where carparking is provided now on the outdoor rooftop.
Other shops will be built around that.
All up, the Mt Wellington property will have about 5,000 carparks once the expansion is finished, the company said.
Although Kiwi did not state it, that will give the mall the largest carparking capacity of any New Zealand retail centre.
Carparks are in high demand at Sylvia Park, particularly on the weekends and before major seasonal events like Easter and Christmas. Shoppers complain about lack of carparking.
Kiwi said today that all up, a further 18,000sq m of retail floor space would be developed at the mall alongside the railway line.
Kiwi's Chris Gudgeon, who confirmed board approval today.
Sylvia Park's expansion is the equivalent of all the new retail floor space being built by Precinct Properties in the new $800m-plus Commercial Bay 39-level office and retail tower rising on the waterfront in the CBD, although no reference was made to that by Kiwi today.
"Kiwi Property has today given the green light to a $223 million 'Galleria' retail expansion of New Zealand's favourite shopping centre1, Sylvia Park, following 11 years of outstanding performance and growth at the centre," a company statement said.
Building works will start next month with a target completion of mid-2020, Kiwi said.
"The project will be debt funded from existing facilities and is expected to provide an initial net incremental income yield on capital expenditure of 5.7 per cent, growing to 6.2 per cent by year three and an incremental internal rate of return in excess of 10 per cent," Kiwi said.
Gudgeon said: "Sylvia Park has been a runaway success since we first opened our doors in 2006. Since the 2009 financial year, annual retail sales at the centre have grown by over $185 million to $547 million and our net income has grown by more than $14 million to $41 million per annum. By bringing the right stores and operators, we have created a highly productive retail environment. Our retailers have seen customer numbers grow to more than 14 million visitors every year, with speciality sales productivity increasing from $7200 per sq m in 2009 to current levels greater than $12,400 per sqm."
Aubrey Cheng, Kiwi retail leasing manager said: "From the moment we announced our intention to expand Sylvia Park, we have enjoyed strong tenant enquiry from high-quality local retail brands, as well as in-demand international retailers, some of whom, if secured, would be new to the New Zealand market. We remain encouraged by this strong level of tenant enquiry and look forward to bringing further excitement to New Zealand's favourite shopping centre."
