Highlights

  • Kiwi Property enters agreement to sell ASB North Wharf in Auckland for USD 205mn.
  • Sale reflects 3.3% discount to September 2025 book value and delivers 10.1% IRR.
  • Pro forma gearing expected to reduce to 30.9% following recent property transactions.

Kiwi Property Limited (NZX:KPG) has entered into an agreement to sell ASB North Wharf, located in Auckland’s Wynyard Quarter, to the Precinct Pacific Investment Limited Partnership for USD 205mn. 

As part of the deal, Kiwi Property will complete approximately USD 2.2mn in remaining capital works at the property. The purchaser will assume responsibility for any additional capital expenditure arising from the extension of the lease to ASB, which was extended last year to 2040. The extended lease contributed to positioning the asset for a successful transaction.

Property Returns and Investment Implications
The sale delivers an internal rate of return (IRR) from inception of 10.1%. Kiwi Property noted that this transaction is part of a broader capital recycling programme, following conditional agreement on Sylvia Park Lifestyle and the completion of the Plaza in Palmerston North in December 2025.

Completion of the ASB North Wharf sale is contingent on consent from the Overseas Investment Office, with settlement expected in the first half of 2026.

Impact on Balance Sheet and Future Opportunities
Following these sales, Kiwi Property’s pro forma gearing is expected to reduce to 30.9%, based on September 2025 figures. The release of capital from these transactions provides the company with resources for potential reinvestment into acquisitions and development at its key mixed-use assets.

The Sylvia Park Lifestyle transaction assumes Kiwi Property acquires a 50% stake in the Mackersy LFR Fund as part of the sale consideration and includes an additional 25% equity underwrite on establishment.

Share Performance
KPG traded at NZD 1.03 at time of writing on 27 Jan, down 0.48% today.