Shopping Centers Today

DEC 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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18 S C T / D E C E M B E R 2 0 1 8 T H E C O M M O N A R E A M I X E D - U S E U .K. retail landlord Intu says it has room to build about 5,000 homes and nearly 600 hotel rooms across its portfolio. Building homes could boost the value of Intu's properties and help address a shortage of housing in that country, notes theFinancial Times. Intu is subject to a takeover offer led by U.K. billionaire John Whitaker. U.S. retail landlords, too, have been revamp- ing their retail properties by adding homes and hotels, as well as offices and other uses. The U.K. government is looking at various ways of easing the housing shortage, including the conversion of empty stores on the nation's high streets. Intu says its six main retail centers have 760 acres between them, of which 470 acres is devoted to parking and other uses that could be given over to development. An initial phase involving the development of some 1,700 rented homes would yield about 5 percent on devel- opment costs, excluding land, of £240 million (about $312million). Q HOME WORK Brookfield to convert GGP malls to mixed- use 'mini cities' Brookfield Property Part- ners wants to redevelop 100 of the 125 malls in its recently acquired GGP portfo- lio into what it calls mixed-use "mini cities." Brookfield estimates that it will invest between $800 million and $1 billion annually over the next few years as it adds on office and residential space to the properties. The firm will redevelop and sell the remaining 25 malls, said‚Brian Kingston, a senior managing partner and the CEO of Brookfield Property Group and Brookfield Property Part- ners, on an earnings call. Since acquiring GGP for $14.8 billion, Brookfield has‚sold off about $4.2 billion worth of stakes in the firm to joint-ven- ture partners‚and intends to sell $2.5 billion more over the next two years, Kingston says. During the third quarter, leas- ing‚spreads were up by 11.6 percent in Brookfield's retail portfolio, while‚tenant sales per square foot were at $744, an increase of 5 percent over the year-ago comparable quarter. "The successful acquisition of GGP," Kingston‚said,‚"marks the culmination of a five-year effort to consolidate all of our real estate investments, giv- ing us direct ownership of our assets and cash flows‚and increasing the flexibility of our balance sheet." Q Ala Moana Center, Honolulu

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