KPG - Kiwi Property Group

[Buzz]

KPG just going from strength to strength. Looking forward to IKEA opening soon. Decent qtrly dividends and still SP trading under NTA

[LaserEyeKiwi]

https://www.nzx.com/announcements/462281

Sylvia Park Lifestyle to be sold to new Mackersy LFR Fund

10/11/2025, 08:30 NZDT, GENERAL

Kiwi Property has entered into a conditional agreement to sell the property at 393 Mt Wellington Highway, Auckland, known as Sylvia Park Lifestyle ("SPL") to a new large-format retail fund to be established by Mackersy Property Limited (the "Mackersy LFR Fund") for $90 million, equivalent to the 31 March 2025 valuation. SPL is the large-format retail ("LFR") site adjacent to the Sylvia Park shopping centre. Further detail on the terms of the sale is set out at the end of this announcement.

Mackersy Property Limited (Mackersy) will be the Manager of, and the issuer of units in, the Mackersy LFR Fund. On establishment of the Mackersy LFR Fund, Kiwi Property will subscribe for 50% of the units in the fund as part consideration for the sale of SPL to the fund. Kiwi Property will also underwrite a further 25% of the units in the fund. Kiwi Property will continue to undertake property management and leasing in respect of SPL and will receive a fee for undertaking these services.

It is the intention of both Mackersy and Kiwi Property that the LFR Fund will continue to grow over time, and will look to acquire suitable LFR assets for this purpose.

Kiwi Property invested in Mackersy by way of a convertible loan in November 2024, and on completion, Kiwi Property expects to own 50% of Mackersy, with the other 50% owned by the existing shareholders of Mackersy, being employees or former employees of Mackersy (or entities associated with those persons). The parties are targeting a conversion of the Kiwi Property loan to equity in Mackersy on or around 1 December 2025.

Kiwi Property's CEO, Clive Mackenzie, said: "The sale of Sylvia Park Lifestyle into this new LFR Fund demonstrates the benefit of our investment in Mackersy, which provides a new source of capital to support our strategic objectives. Proceeds from the transaction will be used to fund some of the company's development projects and provide further balance sheet flexibility."

Mackenzie added, "By retaining a significant stake in the LFR Fund, we can continue to leverage our retail management and leasing capabilities to drive the performance of the asset on behalf of both Kiwi Property and LFR Fund investors, while releasing capital to reinvest in our strategic mixed-use assets. The LFR Fund may also provide a source of capital for future LFR developments at existing Kiwi Property sites."

Hamish Wilton, Mackersy's CEO, commented: "We are pleased to be creating a new fund for wholesale investors to have the opportunity to invest in large format retail, a class of assets which tends to be resilient in all market conditions, and which is entering a new phase of renewed momentum, driven by monetary easing and investor confidence. Our valued relationship with Kiwi Property has meant we have been able to secure Sylvia Park Lifestyle as the initial seed asset for the fund."  

KEY TERMS OF SPL SALE

The key terms of the sale of SPL to the Mackersy LFR Fund and the establishment of the Fund are set out below.

Sale price for SPL: $90 million

Condition for sale of SPL:
Capital raise by the Mackersy LFR Fund, expected to be satisfied by 19 December 2025 (which may change by agreement between the parties)

Expected settlement date if condition is satisfied:
Settlement is expected shortly after the condition is satisfied, currently anticipated to occur the first quarter of 2026

Consideration for sale of SPL: A combination of cash and 50% of the units in the Mackersy LFR Fund as consideration for the sale of SPL. Kiwi Property will also underwrite a further 25% of the units in the fund. This will result in Kiwi Property owning between 50% and 75% of the units in the fund on establishment, and receiving between $52.9 million and $65.3 million cash in consideration for the sale of SPL to the fund, depending on the level of equity underwrite required.

[Shareguy]

Craigs latest says

KPG and SPG are expected to continue to outperform
We believe sector investors may outperform on a relative basis by adopting a barbell approach to positioning. This involves anchoring an LPV portfolio in both low-yield but high-growth LPVs, and high-yield, pro-cyclical LPVs - with active calls in the latter (i.e. high yield) likely to outperform while the OCR is being cut. This strategy is based on back-testing trading approaches using P/NTA and D/P metrics, as evaluated in our sector notes The Gathering Storm (published Nov 2024) and Barbell Rings Again, KPG to OW (published Aug 2025). We continue to see this dynamic performing well in the current environment and maintain our Overweight recommendations for KPG and SPG, our preferred high-yield, pro-cyclical exposures.

Disc/Became a holder in September

[Basil]

Thanks for sharing Shareguy and welcome on board.
What level of dividends are Craigs forecasting for FY27 and FY28 ?

[Shareguy]

Thanks Basil

FY27 5.8  cps
FY28 5.97 cps

Craig's current number one pick in the sector.

[winner (n)]

KPG seems to be the flavour of the month amongst analysts and many on here

Have they thrown ARG the previous favourite out with the bath water

Whats up

[Basil]

For what its worth Winner I have quite significant holdings in both. About the same size, approx 13%-14% of my portfolio in each. I love the high tax free quarterly PIE dividends

[Waltzing]

have we seen a change in management performance with these new developments that will add shareholder value? after all its still the same company but has there been a large scale change in management... MILFORD there recently..

[LaserEyeKiwi]

KPG seems to be the flavour of the month amongst analysts and many on here

Have they thrown ARG the previous favourite out with the bath water

Whats up

They seem to have pretty similar dividend yields at present. I don't follow ARG close enough to know how they compare in terms of future growth, but KPG has a lot of potential near-medium term upside from Drury to look forward to, starting off with the Superlot sales. Plus in terms of current assets, lots of scope for revaluation upgrades on core mixed use assets, and hopefully further divestment of other non-core assets as the market improves.

[Waltzing]

At least these prop comp stocks have DIV IMP Credits... AUS registered only stocks may end up if no cap gain being negative on your tax ledger ...

and they are highly defensive in a world arching back to the 16 th century....AI think NZ is a slow growth defensive investment story but thinks its highly exposed to china.

Its has modelled TW and the generated report is a shocker...

Maybe these stocks inside the next ten years are the new gold..

it also had a sell on Banks ...even though NZ ANZ was profitable but had a question mark over the ANZ GROUP which needs more processing time and report details... 

[LaserEyeKiwi]

yeesh maybe KPG been hit a bit hard by the selldown required by investors to fund the VHP capital raise?

[seaweed]

For what its worth Winner I have quite significant holdings in both. About the same size, approx 13%-14% of my portfolio in each. I love the high tax free quarterly PIE dividends

Similar here but have 7 times more ARG than KPG. I like the numbers with ARG...nta $1.53, pe 8.4 etc. But have noticed plenty there selling at the moment if you want to pick up an extra 50,000 or so in both.

[Basil]

Big capital raise this week with VHP has temporarily sucked a lot of oxygen out of the room. Agree Seaweed that either is very good buying here.

[LaserEyeKiwi]

Speaking of Drury Superlot sales!!!

 
https://www.nzx.com/announcements/462473

Kiwi Property agrees sale of Drury land to Costco

12/11/2025, 08:30 NZDT, GENERAL

Kiwi Property has reached a conditional agreement with Costco Wholesale to sell the retailer 6.4 hectares of land at its new Drury development, paving the way for New Zealand's second Costco store.

 Kiwi Property Chief Executive Officer, Clive Mackenzie, said the transaction marked a major milestone in the Drury development programme.

 Mackenzie said: "Costco has been a hit with Kiwi consumers since it opened its first store in Auckland and we're pleased to be working with them on this exciting opportunity to bring Costco further south."

 Chris Tingman, Costco Country Manager said: "We are very excited to be entering into this agreement with Kiwi Property in a location as great as Drury. Whilst still subject to planning and corporate approvals, our aim is to introduce our unique high-quality, low-cost merchandise to Drury, serving our significant membership base in the south of Auckland, as well as Hamilton and the Waikato region."

 The site is located at the southern end of Kiwi Property's 53-hectare landholding, adjacent to State Highway 1. 

[LaserEyeKiwi]

6.4 Hectares is a BIG chunk of the 53 hectare Drury site.

In contrast the first piece of land sold to Foodstuffs was 1.2 Hectares.