Scentre benefits from narrower retail focus

Westfield shopping centre operator Scentre Group chief executive Peter Allen says the group had benefited from the recent demerger.

“The establishment of Scentre Group has allowed management to focus exclusively on the opportunities in Australia and New Zealand,” he said.

Scentre Group announced results for the six months to 31 December 2014 with arising from its ownership of 47 Westfield centres, including 14 of Australia’s top 20 performing centres, and has assets under management of $40.9 billion.

At 31 December 2014, the portfolio remained more than 99.5% leased, while average specialty retail sales in Australia had increased to $10,200 per square metre.

For the 12 months to 31 December 2014, comparable property net operating income across the Australian and New Zealand portfolio increased 2.2%.

Scentre Group has an identified future development pipeline in excess of $3 billion.

This year it commenced new developments at Chatswood and North Lakes with a combined value of $190 million, with the Scentre Group share being $150 million. 

In 2014, Scentre Group completed the $410 million development at Westfield Garden City in Brisbane and the major stage opening of the $475 million (Scentre Group's share $238 million) development at Westfield Miranda in Sydney.

Scentre Group’s development activity also includes two design and construction projects that are being undertaken for AMP Capital. The $440 million development at Macquarie Centre was opened in the second half of 2014, and the Group continues to make good progress on the $670 million development at Pacific Fair that is expected to be completed in 2016.