The $1.2 billion listed landlord Argosy Property is selling shops, partly because of the sector's volatility and the internet's toll on shopping.
Peter Mence, chief executive, speaking to the Herald as part of the Meet the CEOs video series, said two years ago, Argosy had 33 per cent of its portfolio in retail but had dropped that to 25 per cent and wanted to get it further down to only 20 per cent.
The internet was having an effect, he said, but lower and more risky returns from shops were the bigger drivers of the change, he said.
"I'm not saying retail is bad but we expect to deliver more reliable, stable better returns out of commercial and industrial property. The risks in retail have always been higher," Mence said.
Argosy is selling its $45 million Waitakere Mega Centre to Christchurch investors in a deal due to settle in March and is advertising its Porirua Mega Centre for sale too.
