Strong pricing for retail assets in the current market has meant that owners must be willing to part with high-performing assets.
In Vicinity Centres’ case, the divestment of Runaway Bay, at an 18 per cent premium to book value, enabled Vicinity to invest in Harbourtown—a natural complement to its existing outlet business.
In this TUD Plus Briefing, taken from The Urban Developer’s Retail Property vSummit, Vicinity Centres chief development officer Carolyn Viney talks about her group’s ongoing work to balance the portfolio.
“At the core of our strategy is that diversification,” she said.
“The idea of shopping centres that are in neighbourhood centres and that non-discretionary spend—we've got a big part of our portfolio in that space.
“Then we've got the flagship centres in CBDs and places like Chadstone, which are playing to a different market.
“But then you've also seen us over the last couple of years really positioning ourselves to grow our mixed-use pipeline and that's the other key plank of how we see diversification for our assets.”
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