Kiwi Property sells Sylvia Park Lifestyle to Mackersy LFR Fund

Kiwi Property Group has entered a conditional agreement to sell its Sylvia Park Lifestyle property for NZ$90 million to a new large-format retail fund established by Mackersy Property Limited, with settlement anticipated in the first quarter of 2026. The sale price aligns with the property's March 31, 2025, valuation. This transaction marks a key move for Kiwi Property to generate capital for its development projects.

As part of the deal, Kiwi Property will subscribe for 50% of the units in the Mackersy LFR Fund and underwrite an additional 25%, resulting in a 50% to 75% ownership stake upon establishment. The consideration includes cash proceeds of NZ$52.9 million to NZ$65.3 million. Kiwi Property will also retain property management and leasing responsibilities for Sylvia Park Lifestyle, earning fees for these services.

The partnership aims for the LFR Fund to grow by acquiring suitable large-format retail assets over time. Kiwi Property also holds a convertible loan in Mackersy, which is expected to convert to a 50% equity stake in Mackersy around December 1, 2025, further solidifying their strategic alliance.