Starhill Group, the mall-owner REIT, says improving returns from its Singapore property Wisma Atria cushioned the impact of foreign exchange fluctuations and a sluggish retail environment in China and Hong Kong.
While shopper footfall in Wisma Atria was down 3.1 per cent and combined sales of retail tenants fell 5.6 per cent year-on-year in the fourth quarter to S$139 per sqft, lease renewal rates are running high.
SHREIT said the figures reflected “headwinds in the retail sector” but asserted that assets strategically located in prime areas will continue to be a draw for international retailers.
Wisma Atria is in the heart of Singapore’s prime Orchard Rd shopping precinct.
OCBC reports the REIT’s sales slipped 0.4 per cent year-on-year to S$48.90 due to a weaker contribution from its China and Japan assets. This is turn was partly due to foreign exchange changes.
New lease rates were on average up 17 per cent on previous revisions, largely due to renewals and new leases for prime street-front units, highly sought after by international retail brands.
Management says it remains positive regarding rental reversions at Wisma Atria over the next six months.