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WHAT, YOU might ask, distinguishes one shopping centre from another? In the case of Sylvia Park, size is an obvious distinction. However, other key elements, such as a consummate mix of tenants, well-designed and well-organised spaces, convenience and exclusivity are vital components that contribute to success.

For Kiwi Income Property Trust (KIPT), owners of landmark buildings Vero and the Majestic Centre, getting the mix right was critical to meeting the terms of its investment philosophy: "maximising earnings and providing long-term sustainable returns to investors".

So far, the Trust is well on track, with three anchor tenants up and running, all the specialty stores in Stage I and Stage II 100% leased long before opening, and 91% of the centre's total leases snapped up. And its not just the usual suspects adding exclusivity to Sylvia Park is a strong Australian presence, says KIPT chief executive Angus McNaughton.

"With the southern precinct operating smoothly, Sylvia Park offers one of the strongest, and most diverse, retail shopping precincts in the country. On completion it is anticipated that 15-20% of stores at Sylvia Park will be either new to New Zealand or new to shopping centres. There is also a strong presence of new Australian brands, including Kookae¯, Roxy, Mooks, David Lawrence and Country Road," he says.

When Stages III and IV open next year, the centre's total retail area will be 65,200m² an increase of 3500m² from what was initially planned 50% larger in area and with 50% more parking than any other retail centre in New Zealand.

"Sylvia Park is undoubtedly a significant project, but with $1.6 billion worth of assets already under ownership, KIPT is a large entity," says McNaughton. "Sylvia Park forms an important part of our portfolio, offering diversity and a foothold in the Auckland retail market."

To meet the heavy demand from service and other office tenants, approximately 2700m² of office/retail space is under construction above the Stage IV retail stores. Office buildings are also planned in a precinct to the west of the centre.

"The key focus within the Sylvia Park team has been on delivering the retail component of the project. However, the opportunity exists to construct four mid-rise office buildings," says McNaughton. "With a train station under construction and bus transportation on site, combined with the unparalleled amenities from the retail centre, there is potential to deliver Auckland's pre-eminent decentralised office precinct at Sylvia Park."

KIPT has also future-proofed the retail centre, designing the southern precinct so that a second level can be added when the need arises.

"Looking forward there is an amazing opportunity to add to the existing structure. All the necessary strengthening work has been completed and the vertical transportation is already there in anticipation of eventual expansion," says McNaughton.

Four major tenants anchor Sylvia Park: The 12,500m² concept store of The Warehouse Extra; supermarket brands Foodtown and Pak'N Save weigh in at 4600m² and 6600m² respectively; and a flagship 10-screen Hoyts cinema complex across 6400m² will arrive mid-next year. The Warehouse and Pak'N Save are acknowledged as two of New Zealand's highest turnover generators, and as such will act as key foot traffic drivers to the benefit of specialty retailers.

The focus of Stage III will be the fashion, entertainment and leisure precinct beneath Sylvia Park's 30m volcanic cone. The precinct will contain mini-major tenants such as outdoor sporting goods retailer Kathmandu, gastro-pub Garrison, international bookseller Borders, and a new concept Dick Smith Electronics Powerhouse, as well as the Hoyts complex and approximately 50 other stores. Due to be finished in the second quarter of 2007, the entertainment precinct will form the heart of Sylvia Park.

"Stage III is designed around a striking conical structure that is representative of Auckland's volcanic landscape. The cone will be a key focal point and family destination, where retail stores give way to indoor-outdoor relaxation areas," says McNaughton.

Stage IV will feature a further 35 specialty stores, due for completion mid-2007, including well-known brands not often found in other shopping centres, such as EziBuy, Noel Leeming and The Baby Factory.

To mitigate any construction cost escalation risk, KIPT entered into Guaranteed Maximum Price Contracts and Lump Sum Fixed Price Contracts. To reduce contract risk, four key contractors have been working on site. Multiplex Constructions is the main contractor, Naylor Love built The Warehouse Extra, Fletcher Construction completed Pak'N Save, and Fulton Hogan constructed the eastern roading approach.

For more details, visit the websites: www.kipt.co.nz and www.sylviapark.org.

Story by: Trendsideas