Westfield weathers the storm

NATIONAL:Retail property giant Westfield's first quarter (Q1) 2008 results have been positive, despite economic adversity.

Presenting the results on May 7, Westfield group managing director Steven Lowy said the diversity of Westfield's portfolio and its active approach to asset enhancement, through development and redevelopment, had kept it resilient during the three months ended March 31 2008, despite tough economic conditions.

This was demonstrated by the relative retail sales outperformance during the quarter of redeveloped Australian centres, including the Bondi Junction, Chermside and Paramatta sites as well as a revamped site in Albany, New Zealand.

Despite a softening of the economic environment it was clear from Q1 results that demand from retailers for new and existing space remained buoyant, with occupancy rates remaining high and almost full occupancy maintained in Australia and New Zealand, Lowy said.

Overall sales for the quarter were affected by an early Easter, which had resulted in two less trading days in March. However sales in the Australian portfolio for the rolling 12 months since the previous quarter totalled $20 billion, with total comparable sales up 5.9 per cent for the period, while specialty store sales were up 6.7 per cent.

The quarter had also seen the successful opening of the first stages of two ongoing projects in Geelong and Doncaster in Melbourne, Lowy confirmed.

Westfield Group owns around 23,000 retail outlets in 118 shopping centres across the Australian, New Zealand, UK and US markets.