Mirvac's Broadway shopping centre in Sydney has ranked Australia’s No.1 Big Gun for 2014, according to research by Shopping Centre News (SCN).
The Broadway centre retained its place as Australia’s best performing centre at SCN’s Big Guns Awards 2014, with a turnover per square metre (MAT/m2) of $11,506, a 10.7% increase over last year. This is the second year running that Broadway has been the leader in the MAT/m2, while total MAT increasing 11.4% to $459.1 million, breaking records as the first shopping centre in Australia to reach the $11,000/m2 level.
Susan MacDonald, general manager, retail at Mirvac commented on the results: “This demonstrates the continued efforts of the Broadway team in leasing, marketing and operations and is the result of a well-executed strategy to continually strive to deliver outstanding results to make our retail assets relevant to their communities”.
Best performing centres
According to SCN, Big Guns are those centres with a gross lettable average (GLA) in excess of 45,000 m2, which contain department stores, discount department stores, supermarkets and specialties. SCN describes them as “prime regional shopping centres” that have become “the de-facto 'town centres' of their regions.”
The awards found the best centre in the country for specialty retailers was Westfield Sydney, with a specialty turnover of $16,482. Chadstone centre in Melbourne (owned by Colonial First State Property Trust and the Gandel Group) had a massive turnover of $1.4 billion, making it the highest of any centre in the country. Westfield Bondi Junction came in second place with just over the $1 billion mark. They were the only centres in Australia to achieve more than $1 billion.
“Centre turnover, although important, is not the true measure of a centre. For a retailer, the productivity of the space, its turnover per square meter of leasable area, is a far better indicator of its performance,” said SCN.
Meanwhile, 3rd and 6th place-getters on the MAT ladder - Westfield Carindale (QLD) and Westfield Fountain Gate (VIC) - showed increases in annual turnover of 19.2% and 24% respectively - $908.5m and $872.3m - which is being put down to recent development.
Development and growth
According to SCN's publisher, Michael Lloyd, one of the most significant facts to come out of the 2014 Shopping Centre News Big Guns report is that this year, nine Big Gun Centres are under redevelopment compared to only one in 2013, accounting for around $3 billion in development costs.
"The development pipelines are well underway", said Lloyd. "The game has changed dramatically in the last five years or so, with the huge global funds like the Canadian Pension Fund CPPI, the Abu Dhabi Sovereign Fund, the New York based Blackstone Private Equity Fund and the South Korean Pension Fund all taking stakes in some of our best centres and providing the funds for redevelopment."
Broadway has spent the last 12 months focusing on tenant remixing, according to a statement released by Mirvac, adding in new retailers such as the Apple Store, JB Hi‐Fi, Nike, T2, Peter Alexander and Soul Origin alongside existing key anchors, which has contributed to the increase in MAT. Broadway has also continued to tailor its offering to the diverse demographics in the area with a strong focus on specialty food retail and food catering.
“We’re very proud that Broadway continues to win awards for sales performance, which is testament to a great team effort and partnerships with our retailers to offer one of the best retail destinations in the country for our customers,” said Broadway Centre Manager, Justine Saltmarsh.