Shopping Centre

International shopping centre giant Unibail-Rodamco-Westfield has pushed back billions worth of development projects and will look to sell more malls as it deals with the coronavirus crisis.

The pain in the retail sector has been put on stark display with Chadstone co-owner Vicinity Centres slashing the value of its entire portfolio by nearly $2bn as the coronavirus pandemic discourages shoppers from visiting shopping centres.

Arnold Vitocco received a big scare a week ago, when the Narellan Town Centre shopping centre he owns with billionaire Tony Perich and their respective families was named as one of Sydney’s COVID-19 “hot spots”.

Average retail rents at shopping centre properties owned by listed mall giants Scentre Group and Vicinity Centres will be clipped by 15 to 18% compared to pre-COVID levels as stores close, consumers continue to shift to online shopping and the “new normal” of social distancing measures takes hold, according to analysis from Morgan Stanley.

Two Sydney shopping centres have been sold off in a pandemic double deal worth more than $91 million.

Mall vacancies have hit a 20-year high as eased coronavirus restrictions and increased foot traffic fail to alleviate the pain felt by many retailers, latest figures from JLL show.

The coronavirus has slugged major regional malls while listed property groups with an exposure to Victoria have also been hit in recent days as lockdowns return.

The lockdown of Melbourne that has left major firms unsure when they will return to their offices and CBD retailers shuttered is hitting listed property developers and investors.

The future of shopping centres is again in the spotlight as the coronavirus pandemic flares in parts of Melbourne, but large shopping centre owners are not putting the crisis to waste.