Vicinity’s WA shopping centres devalued by $130 million

Galleria Shopping Centre in Morley.
Galleria Shopping Centre in Morley.

VICINITY Centres says the value of its Western Australian shopping centres has dropped by $130 million, or 6.7 per cent, following an independent valuation.

Vicinity’s WA portfolio includes the Galleria in Perth and Mandurah Forum – both half-owned – and 11 smaller malls including the Rockingham Centre and Livingston Marketplace.

Overall Vicinity Centres’ portfolio of 62 retail properties declined in value by 1.3 per cent, or $202 million, the property group said on Friday.

Vicinity chief executive Grant Kelley said the company’s flagship portfolio – its half-owned Chadstone mall in Melbourne and its DFO outlet stores – has “continued to outperform, demonstrating resilience and reinforcing our strategy to focus on market-leading destinations”.

Chadstone is Australia’s No. 1 shopping centre with $2.2 billion in annual sales, 70 per cent more than its nearest Australian peer, and is adding a hotel in November, Mr Kelley said.

But he said said the operating conditions in Western Australia have been “challenging” and resulted in lower income forecasts.

At 1316 AEST Vicinity shares were down 0.5 cents, or 0.19 per cent, to $2.595.

– AAP