empty shopping mall with escalators
Source: Pixabay
  • Vicinity Centres (VCX) announced net valuations were down 4.0%.
  • That amounted to $570M, for the six-month period to 31 December 2020.
  • CEO of VCX remains positive about recovery and the immanent vaccine rollout.
  • Largest declines came from CBD properties at 8.6%.
  • Outlets and various regional centres saw smaller losses.

Retail property company Vicinity Centres announced a 4% decline in net valuation this morning.

This follows expected hits from government restrictions and lockdowns, CEO and Managing Director, Grant Kelly said in a statement:

“COVID-19 impacted the global economy materially in 2020, the effects of which continue to be felt into 2021, and this in large part has resulted in Vicinity’s December 2020 valuations softening 4.0%”

Like many businesses relying on a return to “business-as-usual”, Mr Kelly is looking forward to the vaccine rollout in Australia.

Encouraging signs were also seen during buoyed periods of trading, including Black Friday and Christmas, as well as governments lifting the pall of melancholy following the lifting of restrictions.

Mr Kelly also said the lack of tourism impacted retail:

“Our CBD centres in Brisbane, Sydney and Melbourne, however, continued to be impacted by the current low levels of tourism and office occupancy.”

Regional centres were more resilient, posting smaller declines compared to their city slicker counterparts.

Vicinity posted declines of 8.6% in the CBD, while neighbourhood retail properties declined by 1%, regional by 4.3%, sub-regional 3.2%, and super-regional 2%.

Vicinity stated valuations are subject to a final audit to be released in mid-February this year.

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