Retail in the news
Writing in today’s Liverpool Daily Post, Stephen Robertson, director-general of the British Retail Consortium, issues a plea for better care of our High Streets. He points out that while 12% of retail space for sale or to let is vacant across the UK, in Liverpool the figure is 17%, and calls for better economic management of our retail centres.
Meanwhile, on a larger scale, two global shopping-mall groups are in the news this week. Simon Property Group, the largest US property company, yesterday launched a hostile US$10bn bid for its troubled rival General Growth Properties, which filed for Chapter 11 bankruptcy protection last year. This is the shopping mall giant’s second attempt at an acquisition in just three months – in December it offered US$700m to buy more than 60 outlet shopping centres from another competitor, Prime Outlets Acquisition Co. Simon Property is clearly taking advantage of current depressed valuations for retail properties in the States to use its cash pile for acquisitive growth – and it may not be the only one. Market watchers think there may be other bidders for General Growth, including REITs that also have good cash cushions.
Australia-headquartered global shopping mall group Westfield has reported a net loss of A$457.8m for 2009, after property revaluations of A$3.54bn. In 2008 the group’s net loss was A$2.2bn. The group said its operations in the UK had stabilised during the second half of the year, along with its interests in the US and New Zealand, while its Australian operations produced a strong performance. The £1.45bn development at Stratford in East London is one of Westfield’s two major global projects currently underway – the other being in Sydney. The group reported “excellent progress” at Stratford, the gateway to the 2010 Olympics, with more than 50% of the project now leased or committed.
