Scentre Group

Scentre Group Limited
Company type	Public
Traded as	ASX:SCG
Industry	Real estate development; Shopping centre management
Predecessor	Westfield Group
Founded	2014;11 years ago; (as a spin off from Westfield Development Corporation founded 1960), listed on theSydney Stock Exchange)
Headquarters	85Castlereagh Street, Sydney, Australia
Area served	Australia; New Zealand
Key people	Ilana Atlas (Chair); Elliott Rusanow (CEO)
Total assets	A$40.9 billion (2015)
Number of employees	2,964 (2024)
Website	www.scentregroup.com

Scentre GroupLimitedis a shopping centre company with retail destinations operating under the Westfield brand in Australia and New Zealand. The corporation undertakes ownership, development, design, construction, funds/asset management,property management,leasing, and marketing activities for its centres. The group was created in June 2014 when theWestfield Groupseparated its American and European businesses from its operations in Australia and New Zealand.^[4]The company islistedon theAustralian Securities Exchangeand had a shopping centre portfolio that includes investment interests in 42^[5]shopping centres across Australia and New Zealand in 2019, encompassing around 12,544 retail outlets and totalassets under managementin excess of A$39.4 billion in 2015.^[2]

History

Scentre Group has origins in thewestern suburbsofSydney.The first development was named "Westfield Place", and opened in July 1959 inBlacktown.^[6]The name Westfield is derived from "west" related to theWest-Sydneylocation, and "field" due to having located on subdivided farmland. John Saunders andFrank Lowyopened the centre.^[6]

The company was floated on the Australian Stock Exchange in 1960 and built another five centres in New South Wales before expanding into Victoria and Queensland in 1966–67.^[7]

The expansion into the United States began with the purchase ofTrumbull Shopping ParkinConnecticutin 1977, and was followed by three centres inCalifornia,Michigan,and Connecticut in 1980 and three centres in California,New JerseyandLong Island,New Yorkin 1986.^[7]In 1994, Westfield joined together with General Growth and Whitehall Real Estate to purchase 19 centres for US$1 billion. The company built considerable holdings on the east coast and in California before expanding in the Mid-West. By 2005, the company owned centres in 15 US states.^[7]

In the 1990s, Westfield began a major expansion to New Zealand, where it mostly bought existing shopping centres of the Fletchers Company, and progressively rebranded them. Only in 2007, withWestfield Albany,did the company open a fully new centre in the country.^[8]

On 9 May 2006, Westfield announced the sale of eight United States shopping centres which it deemed to fit outside its strategic plan, toCentro Properties Group.^[9]

In April 2012, it was announced that Westfield Group would sell seven 'non-core' property assets toStarwood Capital Groupfor A$1 billion and one other property to an undisclosed buyer for A$147 million. The funds would be used to repay debt and invest in businesses offering higher return. The sales were expected completed by November 2013.^[10]

In June 2014, Westfield Group, one of the world's largest shopping centre companies, restructured to create two, new independent companies: Scentre Group andWestfield Corporation.Scentre Group was created to own and manage the company's interests in Australia and New Zealand. Westfield Corporation owns and manages Westfield shopping centres in the United States, United Kingdom, and Europe. Although Westfield Group has evolved into two separate companies, the consumer branding remained the same for Scentre Group's shopping centre portfolio.^[11]

In October 2015,Frank Lowystepped down as the chairman of Scentre Group following 55 years in charge.^[12]

Footfall at the group's shopping centres rose 9.8% to 314 million in 2023 in the first half of the year after adding new entertainment in collaboration withDisneyandNetball Australia.Centres are 99% occupied, with 1,576 new leases signed in the half year.^[13]

On the afternoon of 13 April 2024, a man enteredWestfield Bondi JunctioninSydneyandstabbed at least 18 people,killing 5 female patrons and a male centre security guard. The incident sent the centre into lockdown and shoppers to take cover in stores. A lone police officer arrived and fatally shot the perpetrator.^[14]

The company's figures for 2023:operating funds(FFO) of $1,094.2 million and profit of $174.9 million. The group's portfolio is valued at $34.3bn and partner sales totalled a record $28.4bn (up 6.4% on 2022).^[15]

Current operations

Scentre Group currently has interests in total assets worthA$38.6 billion, owning 42^[5]shopping centresin Australia and New Zealand − with over 3.8 million square metres of retail space.

Australia

Having been established in Australia, with its original premises being at Blacktown, the Scentre Group continues to operate a large number of shopping centres in Australia under the Westfield brand.^{[citation needed]}

New Zealand

Westfield entered the New Zealand market in 1997 and acquired an interest in the St. Lukes Group portfolio in 1998. Westfield malls are by far the most numerous chain in New Zealand, with most of its centres located inAuckland,including their largest development located inAlbany.^[16]As of February 2017, Westfield had NZ$2.5 billion in assets under management in New Zealand.^[17]

In mid-2012, Westfield sold its 50% share of Westfield Shore City inTakapunaon Auckland'sNorth Shore,now known as Shore City Shopping Centre. Later that same year the company soldWestfield Downtown^[18]and Westfield Pakuranga, now known asPakuranga Plaza.^[19]

In 2014, Scentre sold 49% of five properties to the Singapore Government'sGIC Private Limited.The properties are Albany, Manukau, Newmarket and St Lukes in Auckland, and Riccarton in Christchurch.^[20]

In 2015, two more Westfield centres sold by Scentre Group wereChartwell Shopping Centre(formerly Westfield Chartwell) andQueensgate Shopping Centre(formerly Westfield Queensgate).^[21]

In February 2017, it was announced that Scentre Group had soldWestfield WestCityinHenderson,Auckland, to the family-owned Australian business Angaet Group for A$147 million.^[22]