Sylvia Park, The Base and The Plaza report strong sales in June
A surge in post-lockdown retail activity helped boost sales at Kiwi Property’s shopping centre portfolio.
The shopping centre owner posted a 7.5 per cent rise in sales in its shopping centres compared to the same period last year. Total June sales showed a 0.5 per cent increase.
The company’s Sylvia Park shopping centre in Auckland, The Base in Hamilton and The Plaza in Palmerston performed particularly well, recording strong sales during the month.
Linda Trainer, Kiwi Property general manager for asset management, said the solid trading performance was encouraging.
Trainer said after the lockdown, there was a rise in retail activity in the company’s shopping centres and much of the momentum continued through June.
“Our top performing shopping centres going into Covid-19 have typically rebounded the fastest, as have large format retailers, driven by increased leisure and sporting goods purchases,” she said.
Trainer said it’s difficult to predict how the next few months will shape up, adding that a lot will depend on the state of the economy.
“But for now, sales remain strong.”
In April this year, the retail landlord posted a $290 million asset devaluation as a result of government restrictions due to the coronavirus pandemic.
The retail landlord said its total assets are now worth $3.1 billion, down 8.5 per cent from the $3.39 billion before the Covid-19 health crisis.
The company said its retail portfolio had declined in fair value by $126 million, or a 20.8 per cent decrease to $481 million, adding that regional shopping centre values have been the hardest hit by the effects of Covid-19, contributing to a capitalisation rate expansion of 58 basis points to a weighted average of 8.11 per cent.
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