Scentre's strategy 'validated'

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

One of New Zealand's largest mall owners and managers has declared its annual result for the year to December 31, 2015, making revenue of A$2.9 billion, up from A$2.2 billion the previous year.

ASX listed Scentre Group, which owns one mall outright in New Zealand and a further five in joint ventures, also 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 that it managed or owned 977 New Zealand retail outlets worth $1.3 billion and had $2.4 billion of assets under management here, with a weighted average capitalisation rate of 6.98 per cent.

The group owns 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 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 $549 million, the latter two being expected to settle in the first half of 2016.

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 per cent," the business said.