Sydney Airport targets major retail push
Sydney airport has signalled it will push further into shopping and services with the appointment of retail property expert Vanessa Orth from the listed GPT.
Sydney Airport Corporation, which last month released a plan to deal with a predicted surge in larger aircraft that will carry a million more people every year through its terminals, has made the long-time property executive its chief commercial officer, non-aeronautical.
The airport’s draft master plan for 2039, released last month, showed growth in passenger numbers was expected to far outstrip that of aircraft movements, at 51% to 17%.
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By 2039, annual passenger numbers were expected to reach 65.6 million, up from 43.3 million, while aircraft movements would rise from 348,520 to 408,260. This will open further opportunities for retail services and the airport will work with the NSW government over the next three years to develop further ground transport projects to boost links within and to the airport’s precincts.
GPT chief executive Bob Johnston says Orth, who was head of retail at the diversified trust, had played a “pivotal role” in leading the area during a period of significant change in the shopping centre investment and management landscape.
Orth was responsible for setting the strategic direction for GPT’s retail portfolio, and is an industry leader in working closely with tenants. She was previously GPT’s head of asset management, retail, and had also worked at Lendlease and JLL Australia.
GPT owns a $6 billion retail portfolio and manages almost $10bn in shopping centres in total.
The trust’s portfolio has faced challenges from the rise of internet shopping. JPMorgan analysts says after the trust’s interim results last month that the group’s retail sales are “relatively soft” in composition.
GPT’s retail portfolio had $2.8 billion a year in total sales and the trust achieved growth of 2.3%, up from 2.1%. Specialty sales were up 1.7%.
Melbourne Central recorded 10% sales growth and 4.5% specialty sales growth, with JPMorgan suggesting the remaining retail portfolio had flat total sales growth and flat specialty sales growth and negative releasing spreads.
This article originally appeared on www.theaustralian.com.au/property.
