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HomeNEWSScentre Group puts fourth mall on the market

Scentre Group puts fourth mall on the market

Westfield West City in Henderson is the fourth mall to be put on the market.

Colliers is brokering the 36,274 square metre site on behalf of Scentre Group.

The mall currently has a book value of $161.5 million.

It has 145 retailers operating within it, 7.3 million annual customer visits and a trade area population of 212,000 people.

This follows Scentre Group selling three of its malls in Lower Hutt, Hamilton and Auckland last week.

On Friday, Ladstone Holdings group announced it had bought Westfield Glenfield.

Diversified NZ Property Fund, which is managed by Stride Property (NorthWest mall’s owners) bought Westfield Queensgate and Westfield Chartwell for $445 million.

The deal had a yield of 8 percent and is subject to the approval of the Overseas Investment Office.

Diversified’s purchase is expected to close in the first half of next year. Along with opening of NorthWest Shopping Centre, its real estate assets have grown by $960 million this year.

Colliers capital market director Andrew Reed said the $549 million sale of the three Scentre Group properties last week was the single largest transaction in the history of Colliers International New Zealand.

He said Scentre Group had been considering selling its assets for a number of years.

“The process for last week’s transactions took place over the last 12 months, so it is extremely satisfying to bring it to a successful conclusion and to now have the opportunity to market a key Auckland, regional centre.”

The changes are part of a strategy by Scentre Group to own regional malls rather than sub-regional.

The difference between the two is regional malls are often considered destination malls that people travel from far and wide to get to.

Sub-regional malls are considered to be more localised, servicing the people living in the area surrounding it.

The strategy is taking place worldwide in its centres. In June, the company was negotiating the sale of more than AU$1 billion worth of shopping centres.

Scentre Group also sold Shore City mall on Auckland’s North Shore for $83.5 million in July earlier this year.

In 2014, it sold 49 percent of five other New Zealand centres to Singapore’s Government Investment Corp.  

It still has a majority stake in its Auckland malls in Manukau, Albany, Newmarket, St Lukes and its Christchurch mall in Riccarton.

Malls on the block – the breakdown:

West City, Henderson

  • 145 retailers
  • 7.3 million annual customer visits
  • $166.6 million annual retail sales

Glenfield, North Shore

  • 117 retailers
  • 5.4 annual customer visits
  • $134.5 million annual retail sales

Queensgate, Lower Hutt

  • 183 retailers
  • 7.7 million annual customer visits
  • $262.1 million annual retail sales

Chartwell, Hamilton

  • 129 retailers
  • 4.3 million annual customer visits
  • $142.2 million annual retail sales
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