This article is from the Australian Property Journal archive
CENTRO Retail Australia's shopping centre portfolio achieved 3.5% sales growth for the quarter ended March 31.
CRF’s total portfolio totalled $6.7 billion across 87 centres, with the direct portfolio delivering 3.7% comparable NOI of $4.4 billion and the managed portfolio delivering comparable NOI of growth of 3.1% to $2.3 billion.
CEO Steven Sewell said the annual retail growth has slowed, the CRF directly owned portfolio recorded growth of 0.8% for the 12 months to March 2012.
Chief operating officer Mark Wilson said annual sales growth has slowed because supermarkets have been impacted by price deflation.
However, mini majors recorded strong growth across most reporting categories.
“Despite retail sales continuing to be pressured by increased household savings and overseas travel, the recent cut in official interest rates should provide for a more stable sales outlook.
“Occupancy costs have remained stable at 14.4% and we believe they remain at appropriate levels relative to benchmarks and are well positioned given the current retail sales environment,” he added.
During the quarter, CRF completed the sale of assets totalling $61.0 million, comprising its 100% interest in Centro Lansell and 50% interest in Perth City Central. Further asset sales totalling $50.8 million were completed from various syndicates with interests in Albion Park, Deniliquin and the co-owned 50% interest in Perth City Central. Subsequent to 31 March, the managed portfolio has also completed the sale of Centro Townsville.
The trust is currently looking to sell a 50% stake in three of its top tier shopping centres, the Galleria in Western Australia, The Glen in Victoria and Colonnades in South Australia.
Property Review
