Kiwi Property has an unconditional agreement to purchase Apex Mega Centre for $64 million.
The large format retail centre is located on the Mt Wellington Highway, opposite Sylvia Park Shopping Centre and adjacent to the southern motorway.
The centre, constructed in 2011, is 16,200sqm, with Spotlight, Freedom Furniture, and Torpedo 7 stores.
The weighted average lease term is 5.13 years, and the centre is currently fully occupied.
The purchasing price is based on an independent valuation on a capitalisation rate of seven per cent, and a projected 10 year internal rate of return of 9.12 per cent.
The purchase will be funded by existing debt facilities.
“This is a logical opportunity for us to control and add value to a bulky goods retail offer on a high-profile landholding immediately opposite our own flagship retail asset, Sylvia Park,” Chris Gudgeon, Kiwi Property CEO, said.
“Sylvia Park continues to develop as a dominant retail destination within the Auckland region. Expanding our retail footprint at this key location enables us to present our customers with a broader, complementary and more compelling retail offer.”
