Property editor of the NZ Herald

Mall operator Scentre reports $1.1b funds from operations

Across Australia and NZ, Scentre has interests in 40 malls and 11,700 shops and it has total assets under management of A$42.1 billion. Photo / Chris Gorman
Across Australia and NZ, Scentre has interests in 40 malls and 11,700 shops and it has total assets under management of A$42.1 billion. Photo / Chris Gorman

One of New Zealand's largest mall owners and managers has declared its annual result for the year to December 31, 2015.

ASX listed Scentre Group, which owns one mall outright in New Zealand and a further five in joint ventures, declared funds from operations here and in Australia of A$1.1 billion.

Scentre fully owns Westfield WestCity and has a 51 per cent stake in malls at Albany, Manukau, Newmarket, Riccarton and St Lukes.

Frank Lowy, group chairman said the rationale for creating the Scentre Group had been validated by the result.

He was referring to a corporate restructuring which saw Scentre take over management and ownership of the Westfield string of malls throughout New Zealand and Australia.

Scentre said in the result that it has 977 New Zealand retail outlets worth NZ$1.3 billion and NZ$2.4 billion assets under management here, with a weighted average capitalisation rate of 6.98 per cent.

The group has total assets here and in Australia valued at A$31.8 billion and it noted revaluations of A$1.5 billion during the year.

Across both countries, Scentre has interests in 40 malls and 11,700 shops and it has total assets under management of A$42.1 billion.

The group cited a number of sales in its half-year result, including stakes in New Zealand malls.

"Scentre Group completed the sales of Figtree, Strathpine, Warrawong and North Rocks in Australia for gross proceeds of A$783 million and also announced the sales of Glenfield, Queensgate and Chartwell in New Zealand for a total of NZ$549 million, the latter two being expected to settle in the first half of 2016.

These centres did not meet the group's long term strategy. The proceeds from these sales are being reinvested in the group's development pipeline which is expected to generate internal rates of return of at least 15%," the business said.

Scentre has plans to double the size of its Westfield St Lukes and also cited big development plans in Australia.

"In 2015, the group commenced A$830 million of redevelopments, including projects at Casey Central, Chatswood, Hurstville, Kotara, North Lakes and
Warringah Mall," Scentre announced.

- NZ Herald

Get the news delivered straight to your inbox

Receive the day’s news, sport and entertainment in our daily email newsletter

SIGN UP NOW

© Copyright 2017, NZME. Publishing Limited

Assembled by: (static) on production bpcf03 at 21 Feb 2017 02:17:29 Processing Time: 477ms