The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
5
print
Print
RetailTed TabetTue 18 Feb 20

Scentre Eyes $3bn Development Pipeline

4cd7fd9a-016a-43d2-a243-719940ab68a2

Shopping mall giant Scentre Group is pushing ahead on more than $3 billion of future retail development opportunities despite soft guidance and anaemic consumer spending.

Scentre, which is led by Peter Allen, posted a full-year net profit of $1.18 billion, down 48.4 per cent from $2.28 billion a year ago, with windfall gains in portfolio values boosting the result for 2018-19 financial year.

The retail landlord reported a lift in Funds From Operations to $1.34 billion up 0.4 per cent from its 2018 result.

Distribution for the 12 month period was 22.6 cents per security, up 2.0 per cent and in line with forecast while distribution for 2020 is forecast to be 23.28 cents per security, an increase of 3 per cent.

Scentre, with total assets under management of $54.6 billion, remains bullish on its outlook for its top retail assets.

The retail landlord has been remixing its Westfield shopping centre portfolio to meet demands for leisure-focused customers and to combat the threat posed by e-commerce.

▲ Scentre Group released its results for the 12 months to 31 December 2019, with Funds From Operations of $1.34 billion, in line with its forecast.


“We continue to innovate in how we engage with our customer and are using new technology to enhance our direct engagement with the consumer,” Scentre chief executive Peter Allen said.

Scentre reported that its portfolio, made up of 42 Westfield shopping centres, holds an occupancy rate of 99.3 per cent and welcomed over 548 million visitors over the twelve months to December—an increase of 12 million visitors on the previous year.

“[Scentre's] operating metrics are outperforming peers, but we expect underlying income will likely disappoint in 2020,” analysts from investment bank UBS said.

“At a time when there remain a large number of retail assets on the market and increased income uncertainty, we believe valuations will likely remain under pressure.”

Over the year Scentre divested $2.1 billion worth of assets including office towers above Westfield Sydney and a stake in Sydney’s Westfield Burwood in order to raise capital.

▲ New Zealand’s Westfield Newmarket was completed late last year. Image: Scentre Group


The group acquired a 50 per cent interest in Westfield Booragoon in Perth for $570 million and became the long-term property and development manager for the centre.

Scentre also completed the $757 million Westfield Newmarket development, which has become the leading lifestyle and fashion destination in New Zealand.

In 2019, Scentre received approval for the masterplan of Westfield Doncaster for a $500 million redevelopment and is providing the retail component of Sydney’s Central Barangaroo.

Allen also sounded out about $1.5 billion worth of mixed use redevelopment being planned for Westfield malls, which could include offices, apartments and potentially educational uses.

RetailAustraliaSector
AUTHOR
Ted Tabet
The Urban Developer - Journalist
More articles by this author
website iconlinkedin icon
ADVERTISEMENT
TOP STORIES
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
Exclusive

Watchdog’s Court Loss Throws Spotlight on Union Balancing Act

Clare Burnett
6 Min
Time and Place's The Queensbridge Building at 90 Queens Bridge Street in Melbourne's Southbank.
Exclusive

Innovation Keeps Time & Place’s Southbank Skyscraper Rising

Marisa Wikramanayake
6 Min
Breathe Architecture founder Jeremy McLeod in front of his Featherweight Home design
Exclusive

Nightingale Founder’s Bid for Affordable Architectural Kit Homes

Leon Della Bosca
7 Min
View All >
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
The 16-storey mixed-use proposal comprises 132 apartments and 602sq m of retail/commercial tenancies...
LATEST
Novus on Victoria Chatswood
Build-to-Rent

Novus Plots Second BtR Tower for Chatswood

Renee McKeown
2 Min
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
3 Min
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
3 Min
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/scentre-eyes-3bn-development-pipeline