St Ives tops Sydney’s highest revenue local shops
St Ives Shopping Village in Sydney has won the title of Australia’s highest revenue neighbourhood shopping centre, with annual sales of $245.26 million.
The honour of the most productive neighbourhood centre went to Nowra Mall on the NSW south coast, with a moving annual turnover of $17,777 per square metre, according to figures from industry publication Shopping Centre News.
Several of the highest-selling and most productive malls managed to increase sales despite a challenging retail environment, where headwinds included the rise of online players such as Amazon and cautious consumers facing weak wages growth.
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Analysts have tipped a “barbell” effect in the retail property market, with small convenience centres and flagship destination malls expected to weather the storm better than some mid-sized assets.
The top-ranked St Ives Shopping Village is owned by private vehicle EK Nominees — owned by the Sydney-based Katz family — and managed by NortonTower. The centre’s sales edged down 1.1% this year.
The second mall by sales was Barkly Square in Melbourne’s inner north, with $185.85 million in sales, up 0.3%. ISPT owns the asset and JLL is the manager.
Stanhope Village in western Sydney and owned and managed by Mirvac was third with $175.82 million in sales, up 3.8%.
Retail landlords have been remixing large and small centres to include eateries, leisure and experiences that can not be bought online. Malls that ranked well in the survey had a strong supermarket and services presence, SCN publisher Michael Lloyd says.
“Coles, Woolworths, IGA and newcomer Aldi are featured heavily in these centres and ensure repeat visitation from the local trade area,” Lloyd says.
The most productive centre, Nowra Mall, is owned by a private investor and managed by RHC Retail. It lifted sales 5.3% during the year.
Lane Cove Market Square on Sydney’s north shore was the second most productive mall, with sales of $16,684 per square metre, up 0.5%. SCA Property Group is the owner and Colliers International the manager.
Norwood Place Shopping Centre — owned and managed by J Chapley Group — in Adelaide was ranked third, with $16,664 of sales per square metre, down 0.9% over the year.
Research on the largest malls earlier this year found the highest selling centre in the nation was Melbourne’s Chadstone, jointly owned by Vicinity Centres and John Gandel, which had moving annual turnover of $1.94 billion.
This article originally appeared on www.theaustralian.com.au/property.
