The Scentre Group has sold four Australian shopping centres in a deal worth $783 million.
The Figtree, Strathpine and Warrawong centres will be sold to Blackstone Real Estate Asia, and the fourth centre, North Rocks, will be sold to Challenger. The sales will settle in the third quarter of 2015.
The company also announced it had lifted comparable specialty sales 6.1 per cent during the six months to June 30. Strong sales growth was seen in the fashion, footwear, jewellery, leisure, technology and appliances, and cinemas categories.
It maintained its guidance for full-year funds from operations of 22.5 cents per security, up 3.5 per cent from a year ago, and distributions of 20.9 cents per security.
Chairman of Scentre Group, Frank Lowy, said the rationale for the creation of Scentre Group just over a year ago was being realised and was evident in the results.
“The business is operating efficiently and the underlying strength and quality of the assets mean the future prospects for Scentre Group remain promising.”
CEO of Scentre Group, Peter Allen, said he was pleased with the results.
“In addition to having 14 of the top 20 shopping centres in Australia by annual sales, each of Bondi Junction and Westfield Sydney now generate annual sales in excess of $1 billion,” Allen said.
“The group is committed to creating extraordinary places connecting and enriching communities, and this year has announced a number of major initiatives, including $825 million of development starts, new services to improve the shopper and retailer experience, and an improvement in the quality of the Australian portfolio.”
Scentre Group said it was focused on the integration of food, fashion, leisure and entertainment experiences in each of its shopping centres to curate a retail environment that connects shoppers with the retailers, goods and services that will resonate with the local community.
The roll out of free wi-fi in its centres is continuing, a ticketless parking system has been introduced to four centres and 1200 custom-designed digital SmartScreens have been rolled out nationwide, as a new in-house digital advertising network to promote products and offers and better connect with the shopper.
The company reported Westfield Miranda and Garden City Mt Gravatt were trading strongly after the completion of their expansions. In 2015, the group has commenced $825 million of developments, including projects at Casey, Chatswood, Hurstville, Kotara, North Lakes and Warringah Mall.
