![]() ![]() We could either be a convenience specialist based in the neighbourhood and sub-regional centres, or we could be a scalable player with large retail boxes that average about 50,000 sqm and above. That strategy worked once upon a time, but now we need to have scale and focus, and so we had to choose. We had small neighbourhood centres and very large shopping centres. Please tell us more about your plans going forward.īy virtue of the company’s history, which was built by consolidation over several mergers,Vicinity was present at every level of the retail property portfolio mix. Vicinity has embarked on a fundamental change in its retail strategy.With some A$27 billion in assets under management across approximately 70 shopping centres, Kelley discusses the company’s future, Amazon’s entry into Australia and the benefits of sustainability. Kelley has spent extensive time in Asia during his corporate career, including four years as CEO of Singapore’s largest property developer, City Developments Limited, owned by billionaire Kwek Leng Beng. Under the charge of Grant Kelley, the company recently proposed the establishment of a A$1 billion wholesale Australian retail property fund with Keppel Capital. Underlying this three-pronged approach is a goal to become the number one real estate company in Australia as it re-positions amid rising competition from digital commerce players. The sale proceeds will be re-invested in its core assets to create market-leading retail, dining and entertainment destinations in strategic urban locations. This includes selling 11 assets for A$631 million earlier in October 2018, forming part of Vicinity’s A$1 billion divestment programme of Sub-Regional and Neighbourhood shopping centres announced in June 2018. Since the merger, the company has sold more than A$2.5 billion of non-core assets, significantly reshaping its portfolio. This strategy is focused on creating destination assets, expanding its wholesale funds’ platform by around A$1 billion (US$725 million) and realising an estimated A$1 billion upside in value from mixed-use residential, commercial, cultural, institutional and entertainment projects. Since Grant Kelley joined Vicinity in January 2018, the company has embarked on an ambitious three-pronged strategy. ![]() Vicinity Centres was created in 2015 following the merger of Federation Centres and Novion Property Group. INTERVIEW: Vicinity Centres’ Three-Pronged Approach to Reach the TopĬEO and Managing Director Grant Kelley talks about strategies in the age of digital commerce, developing mixed-use assets and starting a wholesale fund. ![]()
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