Northlands Christchurch - Stage Two Fully Leased

22 September 2003

Manager of Kiwi Income Property Trust:
Kiwi Income Properties Limited

Northlands Christchurch - Stage Two Fully Leased Ahead of Schedule

Auckland – Kiwi Income Property Trust’s $91m redevelopment of Northlands shopping centre is continuing to prove itself as a sound investment, with stage two of the project having being fully leased ahead of schedule.

This follows the success of stage one also being leased ahead of schedule, and is now being talked about in the retail sector. Stage two of Northlands redevelopment combines 47 retailers within a new fashion precinct and foodcourt. The foodcourt will have seating for 500 customers.

Kiwi Income Property Trust’s chief executive, Angus McNaughton said Northlands is a good example of the Trust’s retail investment strategy in action, building on the existing value of its retail assets to generate stronger returns for unit holders.

Stage one of Northlands opened fully leased on time and on budget in July. Stage two of construction is well underway and is on schedule for completion in early November.

Just some of the leading fashion labels include Kimberley’s, Moda Bella, Just Jeans, Rodd & Gunn, Staxs, Pascoes, Portmans, Max, Colorado and Overland.

Wendy's Supa Sundaes NZ Master Franchisee Steve Clansey said they have been extremely pleased with the level of business they have experienced since the opening of stage one at Northlands.

“In August, the Northlands outlet had the highest sales of all stores across Australia and New Zealand,” he said.

Mr McNaughton said the calibre of the tenants and the level of interest in the centre is a testament to the overall quality of the redevelopment.

“The redevelopment is helping to re-weight our overall portfolio more in favour of retail assets and will ensure that the Trust continues to be one of the most balanced and solid investments New Zealanders can have in their portfolio.”

The leasing of Stage three is well underway, with key retail outlets secured including Glasson’s, Levi’s and Jay Jay’s.

When the Northlands redevelopment is completed, it will feature over 130 shops with 40,700 square metres of retail space and will become the largest enclosed shopping centre in New Zealand.

About Kiwi Income Property Trust

Kiwi Income Property Trust’s aim is to maximise returns for its unit holders through the careful acquisition and professional management of its property portfolio. All net income (after tax) is distributed to unit holders in each financial year.

The Trust is New Zealand’s largest listed property vehicle, with $925 million invested in prime retail, office and industrial assets located throughout New Zealand. The Trust is ranked 13th on the NZX’s top 50 companies, and reported a 3.2% increase in net income after tax to NZ$44.75 million for the year to 31 March 2003.

Kiwi Income Property Trust’s website address is www.KIPT.co.nz.

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