Westfield says Australian and NZ portfolio resilient through downturn

SYDNEY - Shopping centre owner Westfield Group says solid Australian trading conditions continued in the third quarter, while stabilisation continues in the United States, Britain and New Zealand.

Delivering the group's review for the three months to September 30, managing director Steven Lowy said the group's resilience had shown through.

Overall, 96.8 per cent of Westfield's shopping centre portfolio was leased at September 30, down 0.5 percentage points on the same point last year.

The Australian and New Zealand portfolio had remained resilient through the economic downturn with close to full occupancy, Lowy said.

In the US, 92.1 per cent of the portfolio was leased, while in the UK it was 97.8 per cent.

Both of those portfolios had come off respective lows of 90.1 per cent and 90.6 per cent experienced in March this year, Lowy said.

He said no new developments were expected before the second half of 2010.

The first of any new developments were expected to be in Australia.

The group currently has four major projects under construction around the world, with A$1.8 billion ($2.2 billion) spent on those projects to date and an additional A$1.9 billion to come.

Retail sales in Westfield's Australian centres totalled A$21.4 billion in the three months to September, up 1.9 per cent on the second quarter of 2009.

New Zealand sales were down 0.2 per cent on the June quarter to A$2.1 billion.

Specialty retail sales in the US dropped by 2.4 per cent on the previous quarter, while in Britain they rose 3.7 per cent.

- AAP