New manager for WestCity
Change in ownership of commercial properties can open opportunties for new managers, reports Chris Hutching.
Scentre Group’s $205 million sale of WestCity shopping centre in Auckland has opened up a new business opportunity for the facilities management team at Colliers.
The Colliers real estate management division headed by Richard James, is replacing the internal management carried out formerly by Scentre Group and partner Westfield.
James said the name of the shopping centre would remain the same, but his team would re-brand the look of the 36,108 square metre centre for its new owner, as distinct from the Westfield brand.
The new owner, Angaet Group, is a DiMauro family company under the leadership of Nick DiMauro and his son Nick.
Angaet owned 25 Australian community shopping centres, James said
‘‘We want to play on local themes and we’ll be engaging an external branding company. The name will stay the same but the imagery and signage will change.’’
Any future development plans would be some way off and would need to be in the context of the proposed Auckland unitary plan, he said.
‘‘We need to get in and understand how the centre operates and where trading is strong and where there needs to be an emphasis on improvement.
‘‘This is a client we’ve developed a new relationship with in recent months, so we need to learn about their intentions. They’re a family business and they’re pretty discreet.’’
WestCity is anchored by Countdown, Farmers, The Warehouse and Event Cinemas, as well as several smaller tenants.
Occupancy was high and Colliers would be seeking tenants for any empty spaces.
Continuity of management would be ensured because the facilities staff currently working at WestCity would come under the nine-strong group based at Colliers headquarters, although the employment status of security staff had yet to be determined, he said.
There were about 10 core management staff at WestCity affected by the move, James said.
Scentre Group’s sale of WestCity follows its sales last year of Glenfield Mall in Auckland, Queensgate in Lower Hutt, and Chartwell in Hamilton for $549m.
It retains a half share with a Singaproean pension fund in Albany, Newmarket and St Lukes with development potential, as well as Manukau, and Riccarton Westfield in Christchurch.
In a report to the ASX last week, Scentre Group said its long term strategy is to own the highest quality shopping centre portfolio in Australia and New Zealand.
‘‘We have now completed the divestment of nine shopping centres that did not meet this objective, which has refined our portfolio to meet the dynamic needs of retailers and consumers.’’
The company retains shopping centre assets worth $45 billion.