Northlands is star performer for Kiwi Income

Sales at Christchurch’s Northlands Shopping Centre surged 25% after rival outlets were knocked out by earthquakes last year.

Owner, Stock Exchange-listed Kiwi Income Property, reported the result when it revealed retail spending at its six malls around the country for the year ending December 2011.

Kiwi Income made the announcement ahead of an investor road show to the United States.

In percentage terms the Northland centre’s $390.5 million performance outshone Westfield Riccarton’s jump in sales over the same period by 16.3% to $407 million.

Other malls such as The Palms (privately owned) at Shirley, and Eastgate at Linwood (owned by listed National Property) were both closed in the February earthquake, forcing residents to seek supplies further afield.
Kiwi also enjoyed strong performances at Sylvia Park Shopping Centre (+7.0%) and Lynn Mall Shopping Centre (+5.3%) in Auckland, as well as The Plaza in Palmerston North (+7.5%) and North City in Porirua (+4.2%).

“Conversely, the competition-affected Centre Place Shopping Centre in Hamilton, currently undergoing redevelopment, posted negative growth with sales declining 21.4%,” the company said.

The Christmas trading period was particularly strong for the Trust’s portfolio of six shopping centres with December 2011 sales for the portfolio up 10.0%. Standout performers were Sylvia Park, Lynn Mall and

Northlands, which recorded December sales increases of 10.1%, 10.5% and 15.2% respectively compared to the same month in the prior year.

“Looking ahead, our research indicates that sales growth over 2012 is projected to be 3-4% and over the medium term should continue to grow in line with the general economy at about 4% a year.”

Chris Hutching
Wed, 29 Feb 2012

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Northlands is star performer for Kiwi Income