Westfield rides retail rush

By ANNE GIBSON

A 5.2 per cent increase in retail sales at Westfield Trust's 11 malls in New Zealand helped drive up its half-year profit of $265.1 million declared yesterday.

Announcing the profit for the six months to June 30, Westfield said it was a 16 per cent increase on the previous corresponding period. It announced an interim dividend of 11.42Ac.

Three NZ malls were revalued. Westfield's Glenfield mall increased more in book value than the other two centres, up $A8.4 million ($10.2 million) to $A115.4 million. The Shore City centre at Takapuna increased in value by $A2.3 million to $A69.6 million and Westfield's Henderson mall by $A4.1 million to $A130.5 million.

"Retail sales for the year at Westfield shopping centres in New Zealand increased 5.2 per cent to $1.3 billion," said Westfield managing director Mr Steven Lowy from Sydney.

"Last month, work was completed on the redevelopment of Westfield Shoppingtown WestCity in Auckland. The $84 million project included The Street ... and the centre has traded well since reopening.

"In May, the trust announced the acquisition of the remaining 50 per cent interest in the Manukau shopping centre from its partner in the centre, AXA New Zealand, for $83 million. The centre has 136 retailers and generates annual sales of $180.4 million," Mr Lowy said.

"Plans are also being finalised for the redevelopment of Westfield Shoppingtowns St Lukes and Queensgate [Lower Hutt], which are expected to commence this year."

Westfield Trust has assets of $A8.5 billion, up 6.5 per cent from the total at June 30.

"Five shopping centres were revalued during the period, two in Australia resulting in a revaluation surplus of $A26.3 million and three in New Zealand, resulting in a revaluation surplus of $A14.8 million," Mr Lowy said.

The $1 billion upgrade and expansion of the NZ portfolio would result in Westfield being in a strong position in the market here, he said, and was aimed at ensuring the trust's shopping centres continued to meet the changing retail environment and provide future earnings.

Westfield