Highpoint Shopping Centre fully-leased but retail sales growth “modest”: GPT

GPT’s Highpoint Shopping Centre in Melbourne West is fully leased following its $300 million redevelopment into the third largest shopping centre in Australia, the listed property developer has reported in its March quarter market update.

The redevelopment included the addition of a new fashion precinct and the opening of Top Shop and Zara stores alongside a new David Jones department store in mid-March, adding 30,000 square metres of space and ranking it third behind Chadstone Shopping Centre in Malvern East and Westfield Fountain Gate in Narre Warren.

However, GPT reported weaker conditions in the retail market and modest growth in retail sales with specialty sales growth of just 1.3% over the quarter.

Positive leasing outcomes increased retail occupancy to 99.7%.

Retail property ($4.87 billion) comprises more than half of GPT’s property portfolio worth $8.64 billion.

Across its office portfolio, nearly 23,000 square metres of space was leased during the quarter and occupancy remained steady.

GPT’s other major project is its 161 Castlereagh Street office tower in Sydney, which reached practical completion in March with the surrounding plaza and retail precinct on track for completion in mid-2013.

The tower to be known as ANZ Bank Centre will have 55,000 square metres of office space across 43 levels as well as 3,200 square metres of ground floor retail space.

It is the sixth tallest building in Sydney, designed by Francis-Jones Morehen Thorp (FJMT), a Sydney based architectural firm and constructed by Grocon.

Head of investment management, Carmel Hourigan said the performance across the asset portfolios had been solid for the quarter.

“Occupancy remains high at 98.3% and we have a long weighted average lease expiry at 4.9 years,” Hourigan said.

GPT declared a distribution of 5.1 cents for the March quarter, up 10.9% on the equivalent period in 2012.