Mobile phone stores ringing the till at Colonial First State shopping centres

Mobile phone stores ringing the till at Colonial First State shopping centres
Mobile phone stores ringing the till at Colonial First State shopping centres

Mobile phone stores were the top-performing speciality tenants in the 29 shopping centres that form part of Colonial First State’s retail trust, according to interim results for the six month to December 31.

Mobile phone stores sales increased by 22% in the 12 months to December 31 to $103.7 million compared to $85 million in 2010.

Food retailers (annual sales up 8.8% to $180 million) and food caterers (up 6% $374 million) were the other strong performers among speciality store tenants.

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In total speciality stores annual turnover increased by 3.4% in 2011 to $2.6 billion generating turnover per square metre of $9,086 compared with $8,788 in 2010.

Among the strategies CFS Retail will embrace in 2012 will be “remixing tenancies to optimise performance” and “supporting retailers by advancing online and social media strategies”.;

On a comparable growth basis (including centres that are not undergoing or have not undergone substantial redevelopment in either period of comparison), speciality tenants were second strongest-performing tenants, with turnover increasing by 2.9%, ahead of supermarkets (2.1%). 

The strongest tenant category was “other retail”, which includes cinemas, travel agents, auto accessories, lotto and other entertainment and non-retail stores, with sales growth of 3.3%. 

Department store sales slumped by 6.1% while discount stores sales fell 2.1%. 

The REIT noted a subdued retail sales growth environment with household consumption around trend.

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Across its portfolio it achieved 99.7% occupancy. 

The shopping centre portfolio’s valuation increased to $8.05 billion from a $7.9 billion valuation for the first half of the year after 16 of its assets were re-valued during the period.

Including the four DFO centres, the portfolio is worth $8.6 billion.

Its assets include the Chadstone Mall, the biggest in Australia, which is set to undergo a $520 million refurbishment.

It also currently building Emporium Melbourne between Lonsdale Street and Little Bourke Street, which upon completion in late 2013 will introduce 43,856 square metres of new, retail floor space in the heart of Melbourne’s CBD.

Net property income for the trust increased 11% to $278.5 million over the six-month period while net profits were down 42% to $201.7 million.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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