Challenge Properties buys Chch mall

Press, 18 February 1989, Page 32

Challenge Properties buys Chch mall

Challenge Properties, Ltd, a subsidiary of Fletcher Challenge, Ltd, has increased its ownership of New Zealand shopping centres with the purchase of Northlands Mall in Christchurch.

The mall’s purchase was along with. that of New Zealand’s biggest shopping mall, the Manukau City Shopping Centre in south Auckland and three other North Island shopping centres. The acquisitions bring to 12 the number of retail centres under Challenge Properties’ control. Challenge’s announcement coincided with the release by the Statistics Department of retail sales figures for the last December quarter. The figures showed an adjusted 1.1 per cent drop in retail sales over the December, 1987, quarter

and a 3.2 per cent rise over the preceding September quarter. Challenge said yesterday the acquisitions brought the investment value of retail centres under its control to more than $3OO million. The combined annual turnover for .1988 was more than $7OO million. In an overview of New Zealand retailing in 198990, Challenge’s retail consultancy manager, Mr Alan Main, said the economic downturn had had a severe effect on retailing, particularly of furniture, whitegoods, footwear and general department store sales. Categories showing gains were supermarkets, chemists and takeaway foods. Successive Governments since 1949 had seen retailing as an industry to

be controlled but the present relaxation of controls was encouraging renewed competition and opportunity for new entrants. The market was open to quality, top-end department stores from Australia — and eventually Japan — which would enter the market as the economy improved and discretionary spending increased. The entry of overseas retailers would cause the demise of many “mum and dad” operations over the next few years. Shopping centres had suffered from lack of investment and expansion but future development created opportunities for new and existing retailers to capitalise on extended shopping hours and new products and services, he said.