SCIL.Shopping Centre Investments Ltd.

[percy]

SCIL to list tomorrow on USX.
SCIL own "The Hub Hornby" mall.
https://usx.co.nz/uploads/paperclip/documents/2622/original/USX_July_Bi-Monthly.pdf?1659421248

[herbert240]

Are you "well positioned" Percy?!

[percy]

No.
Currently just watching from the sidelines.
A very well directed/managed business paying quarterly dividends.

[herbert240]

Will do the same I think.

[Southern Lad]

Given the conditional sale of Northlands Mall by Kiwi Property Group for $160m (Kiwi Property secures conditional Northlands sale - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/398429)), the SCIL valuation of its investment property at $129m looks to be pretty fully priced.

[percy]

Given the conditional sale of Northlands Mall by Kiwi Property Group for $160m (Kiwi Property secures conditional Northlands sale - NZX, New Zealand’s Exchange (https://www.nzx.com/announcements/398429)), the SCIL valuation of its investment property at $129m looks to be pretty fully priced.

I have a funny way of looking at Malls.
Shoe shops never seen to do well.I thought there were 7 on my last walk through Northlands.
I pointed this out to a friend of mine who holds Kiwi Property shares.I told him I saw that many as a weakness in Northland's tenants.A good number of other shops looked weak too.[2nd or 3rd rate]
Next time I spoke to my friend he told me there were 13 stores selling shoes.!!
Now if I had $160 mil to buy either Hornby or Northlands I would buy Hornby.
Therefore either Northlands was over valued or Hornby is under valued.

[percy]

Good trading in December.
https://usx.co.nz/uploads/paperclip/documents/2765/original/Chair's_Report_31_January_2023.pdf?1675140008

[percy]

I attended SCIL's agm today.
Very detailed agm.
The Hub has two major tenants,The Farmers and Pak "n Save.
The high presentation standard of The Hub,has attracted strong tenants.
Clothing retail is down while food including the food court is well up.
The strength of the food court is encouraging as often when times are tough people tighten their belts.
High interest rates are a doubled edge sword;higher bank interest expenses together with downward property revaluations also reduce the business's profit.
It is good to know Canterbury's economy is strong and The Hub's catchment area is growing, as is the catchment area's income.
Most Malls lack fun.entertainment or just being a nice place to visit.
The Hub is a very refreshing Mall and it is easy to see why it is attracting the customers.
May take a year or two ,however I see The Hub is "well positioned" to benefit from lower interest rates ,and their strong tenant mix will see upward revaluations,which will lead to higher dividends.for shareholders .

[percy]

I note Christchurch Mayor Phil Mauger comments when opening the new Matatiki Hornby Centre.
"With over 12,000 new homes expected in Hornby and surrounding areas by 2044".
Be good for The Hub.