Vicinity values fall

Vicinity Centres has announced that 35 of its 62 directly owned retail properties, representing 57 per cent of the value of its holdings, are in the final stages of being independently valued and the remaining properties are being internally valued. The estimated net valuation decline for the overall portfolio is 1.3 per cent, or $202 million, for the six months ending June 30.

Access exclusive news, features, interviews and reports.

Subscribe now or login to access premium content.

Subscribe Log in

The June valuations are subject to finalisation and audit and will be confirmed in Vicinity’s annual report on August 14.

Grant Kelley, CEO and managing director, said that the valuation decline was mainly driven by properties in Western Australia and predevelopment centres.

He said that Vicinity’s flagship portfolio – Chadstone, premium CBD assets and DFO outlets – continued to do well.

“The flagship portfolio is forecast to increase in value by $86 million, or 1.2 per cent, in the period, driven by income growth, with capitalisation rates remaining unchanged on an individual asset basis,” Kelley said.

Kelley said the company had released its estimates earlier than June 30 to facilitate an opportunity to issue bonds in debt capital markets.

He praised the contribution of Chadstone to the overall portfolio performance, saying, “This world-class asset is Australia’s number one shopping centre with $2.2 billion in annual retail sales, which is 70 per cent higher than its nearest Australian peer.”

He said that CBD centres in Sydney – the Queen Victoria Building, the Strand Arcade and The Galeries – had benefited from rereleasing strategies.

Centres in development – which included such properties as Chatswood Chase in Sydney and the Myer Centre in Brisbane – showed weakness, but Kelley believed that planned redevelopments of these centres would significantly enhance their performance and attractiveness.

He said that Vicinity remained committed to WA despite the 6.7 per cent decline in its properties there. He said that continued investment in resources and infrastructure in the state would turn around trading conditions, given time.

Comments

Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inside Retail Polls

Does your retail business have a loyalty program?
Vote

Twitter

Following the footsteps of its peers, @DavidJonesStore is cutting head office jobs in an effort to cut costs and be… https://t.co/NW5zR3tds2

17 hours ago

A post-election bump in confidence seems to have waned over the month of June, with #retail continuing GFC-level co… https://t.co/ZcUudSV1Wr

2 weeks ago

Franchisor #RetailFoodGroup has revealed a potential $160m recapitalisation with investment firm Soliton Capital Pa… https://t.co/gF05UyZP1m

2 weeks ago
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered