Scentre Group today announced the Group has collected $1.8 billion in gross rent, for the 10-month period to 31 October 2021, an increase of $607 million since 30 June 2021, but well short of the near $2.4bn of potential rent.
During the nine months to 30 September 2021, the Group completed 2,010 lease deals, including 868 new merchants, welcoming 191 new brands to the portfolio. The leasing takes portfolio occupancy to 98.5% at the end of September 2021.
Total Majors and Specialty in-store sales were -7.2% lower for the year compared to 2019. Specialty in-store sales were -9.0% lower for the year.
Scentre Group CEO Peter Allen said “Customers are again rapidly returning to our Westfield Living Centres in NSW, VIC and ACT now that restrictions have eased. We are also looking forward to welcoming back more businesses and customers to our Auckland centres from tomorrow.
“Over 95% of stores in our Australian portfolio are open and trading, with more stores to reopen over the coming weeks.
“We have remained focussed on our strategy, leveraging the strengths of our core business by becoming essential to people, communities and the businesses that interact with them.
“During the period, we launched Westfield Direct, our aggregated ‘Click and Collect’ service as an extension of our in-centre experience. Through Westfield Direct, our business partners can leverage their store networks to increase productivity and reduce the cost of fulfillment.
The Group announced the commencement of the $355 million (SCG Share: $178 million) redevelopment of Westfield Knox, in the eastern suburbs of metropolitan Melbourne, Victoria.
The redevelopment will see the replacement of Myer with a range of new retailers, including Woolworths and Aldi, as well as a new fresh food market, a new library and other community uses. The development includes an ambience upgrade, the introduction of ticketless parking and a parking guidance system and the installation of a large rooftop solar system will generate onsite renewable electricity.
Commenting on the progress, Peter Allen said “We are pleased to announce the commencement of the Westfield Knox redevelopment, which will transform Westfield Knox and enhance its value to businesses and the local community.
Upon completion, Westfield Knox will have a gross lettable area of 144,810 square metres, and will feature seven major retailers and approximately 350 specialty retailers, opening in stages between the end of 2022 and 2023.
SCentre reported that other development activity is progressing well with the $55 million rooftop entertainment, leisure and dining precinct at Westfield Mt Druitt, Sydney. Despite the impact of lockdowns, The Group report that all tenancies are fully leased and on track to open in early 2022.
Works on behalf of Cbus Property to design and construct 101 Castlereagh Street on the corner of Market and Castlereagh streets in Sydney’s CBD, are progressing well, with completion expected in 2023.
SCentre has also reinstated the original distribution guidance provided in February 2021, confirming that subject to no material change in conditions, the Group expects to distribute at least 14.00 cents per security for the 2021 year.
Gross Rent Cash Collections
Customer Visits by Region
SCentre have experienced a strong rebound in visitation as soon as government restrictions were eased.
Retailer In-Store Sales
Total Majors and Specialty in-store sales were 7.2% lower for the year compared to 2019. Specialty in-store sales were 9.0% lower for the year.
Majors in-store sales were 4.4% lower for the year.
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