Retail property news
Scentre posts strong quarter
Scentre Group has achieved strong third-quarter results despite the ongoing tough retail conditions, reporting continued growth in customer visits to 535 million on a trailing 12-month basis.
Demand for its tenancies remains strong. During the quarter Scentre completed 1859 lease deals, leaving it with 99.3 per cent of its portfolio leased.
“We are pleased to see continued growth in customer visitation demonstrating our focus on delivering what customers want,” CEO Peter Allen said in a statement.
Scentre also reported an increase in sales during the quarter. According to the statement, total in-store sales grew 2.4 per cent on a comparable basis for the three months and 1.6 per cent for the year.
The strongest sales growth came from its South Australian operation. In-store sales in that market grew 4.9 per cent over the three months on a comparable basis. This was supported by a 3.9 per cent increase in NSW, a 2.2 per cent in Queensland and a 2.5 per cent in Victoria.
In New Zealand in-store sales were largely flat and in the ACT they fell 2.4 per cent during the third quarter.
GPT expands leasings, office
GPT has announced that it has delivered strong leasing outcomes in its office and logistics portfolio, which has resulted in higher occupancy across the portfolio. It has secured commitments for major office locations including Darling Park 1 in Sydney and Melbourne Central Tower.
During the quarter, GPT achieved office leasings of 64,982sqm with occupancy of 97.7 per cent (up from 97.1 per cent last quarter).
Logistics leasings reached 45,815sqm with occupancy of 95.6 per cent (up from 93.4 per cent in June).
GPT acquired two major logistics development sites during the quarter: a 33.4-hectare site in Kemps Creek in Sydney for $100 million, and a 32.8-hectare site in Truganina in Melbourne for $34 million.
However, retail is still facing headwinds. GPT has reported MAT specialty sales of $11,546 per square metre, which represents a rise of just 0.5 per cent. But the company is hopeful that retail will strengthen in coming months in light of the recovery of house prices in Sydney and Melbourne, personal income tax cuts and lower interest rates.
GPT opens Charlestown centre
GPT has invested $10 million in its new precinct, The Corner, in Charlestown, NSW. Charlestown, a suburb of the city of Lake Macquarie, is about 10 kilometres from the Newcastle CBD.
The Corner will feature destination eateries, with a revolving roster of local talent. It brings together independent food producers and boutique brands from the Newcastle area.Shopping Centre News reports that when The Corner officially opens on December 5, it will showcase contemporary Asian eatery Bao Brothers, Newcastle burgers-and-chicken anarchists Rascal debuting their second venue, Italian gelato experts Popolo Artisan Gelato opening their first Popolo Dessert Bar, new artisanal cafe Hunter Espresso and 4 Pines Brewing Company pouring a rotating list of craft beers. Lee’s Yum Cha, with the first traditional Chinese trolley service in the Hunter, will be opening in February.
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