REIT ASIAPAC
COVER STORY
Cover Story
Vicinity Centres was created in 2015 following the
merger of Federation Centres and Novion Property
Group. Since Grant Kelley joined Vicinity in January
2018, the company has embarked on an ambitious
three-pronged strategy. This strategy is focused on
creating destination assets, expanding its wholesale
funds’ platform by around A$1 billion (US$725
million) and realising an estimated A$1 billion upside
in value from mixed-use residential, commercial,
cultural, institutional and entertainment projects.
INTERVIEW WITH
VICINITY CENTRES
CEO and Managing Director Grant Kelley talks about
strategies in the age of digital commerce, developing
mixed-use assets and starting a wholesale fund.
Since the merger, the company has sold more than A$2.5 billion of
non-core assets, significantly reshaping its portfolio. This includes
selling 11 assets for A$631 million earlier in October 2018, forming
part of Vicinity’s A$1 billion divestment programme of Sub-Regional
and Neighbourhood shopping centres announced in June 2018. The
sale proceeds will be re-invested in its core assets to create retail,
dining and entertainment destinations in strategic urban locations.
Underlying this three-pronged approach is a goal to become the
number one real estate company in Australia as it re-positions amid
rising competition from digital commerce players. Under the charge
of Grant Kelley, the company recently proposed the establishment of
a A$1 billion wholesale Australian retail property fund with Keppel
Capital. Kelley has spent extensive time in Asia during his corporate
career, including four years as CEO of Singapore’s largest property
developer, City Developments Limited, owned by billionaire Kwek
Leng Beng.
With some A$27 billion in assets under management across
approximately 70 shopping centres, Kelley discusses the company’s
future, Amazon’s entry into Australia and the benefits of sustainability.
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