Conrad Sinclair has been involved in the retail/shopping centre industry for more than 30 years, starting as a casual in the furniture department of Grace Bros in Chatswood – now known as Myer! From there, Conrad worked for a number of shopping centre managers including Byvan Management and Jones Lang LaSalle and a property developer – Leda Holdings, where he was involved in the development of several major Australian shopping centres. Conrad also worked as a Fund Manager at Colonial First State, responsible for the management of a Shopping Centre listed trust circa $700 million in value.  In August 2000, Conrad joined AMP Capital as a Retail Asset Manager, responsible for the asset management of several regional shopping centres including Pacific Fair and Mt. Gravatt (QLD), Booragoon (WA), Macquarie Centre and Warringah Mall (NSW) and Knox City (VIC). After nearly three years in that role, he was appointed Fund Manager for the AMP Capital Shopping Centre Fund – a role he has held and enjoyed for 16 years.

At 31 March 2019, AMP Capital Shopping Centre Fund (ASCF) has gross assets of $4.4 billion and holds an interest in 14 shopping centres – 50% of which are Super Regional shopping centres with a circa 60% exposure to NSW and Victoria. The fund also holds an interest in two shopping centres in New Zealand.  

The Fund’s strategy is to provide investors with exposure to a core holding of super regional and regional shopping centre assets. ASCF also holds some sub-regional and neighbourhood shopping centre assets that provide value-adding opportunities and are held for liquidity.

ASCF undertakes strategic developments in order to enhance the Fund’s assets and optimise returns for investors. Past developments include Liverpool, Warringah Mall and Macquarie Centre in NSW, Tea Tree Plaza in South Australia, Ocean Keys in WA and Bayfair shopping centre in New Zealand. 

The majority of our clients are domestic and offshore pension funds, who are responsible for managing the retirement funds of their members. This means that if  we deliver great outcomes for our clients, their members  will benefit. 

Macquarie Centre, Sydney

Changes in shopping centres during the past 30 years
The evolution of the customer has driven major changes  in what shopping centres need to look like. From my time in the industry, I’ve seen the transition of traditional shopping centres into social infrastructure hubs, be it through the addition of cinemas in the 80s/90s and the Food Revolution  of the 00s/10s or more recently the influx of adaptable communal spaces such as play areas for the kids. And going forward, as centres strive to adapt to the needs of customers, we will continue to see further changes to the retail mix. 

From our research, we can see that our customers are looking for shopping centres to provide more than just  fashion – they now expect access to food and beverage, entertainment, experiences and emerging trends such  as beauty, under the one roof. 

While the retail mix has changed, what still remains is that shopping centres continue to play an important role  as a community hub and there are plenty of new ways of making a shopping centre a great place to visit, shop or hang out with friends and family. 

Future state
The shopping centre industry has always been changing  and evolving. I remember when shopping centres could only support one or maybe two coffee shops and the coffee was poor. Today, there are many more coffee shops which are all full of customers and the coffee is a lot better.  

There is much talk about creating vibrant spaces (mostly referred to as ‘place-making’) for our customers. Research shows that providing a higher amount of services and amenity to encourage customers to stay longer, can have a flow-on effect to other activities that the centre offers. As an example, it’s been great to see our customers embracing the public art that is being delivered as part of place-making, giving customers plenty of Instagram moments. 

Shopping centres that continue to adapt and meet the customer needs and deliver a best in class offer will continue to be a good long-term investment as they are an important part of our social fabric.

There have been many major developments during the past  10 years and while the size of developments may change, the importance of developments in creating space for the  ever-changing trends will continue. 

The focus of developments in the short to medium term  will be food dine-in, entertainment and leisure. The last two developments in ASCF have included casual dining and both developments are proving to be very successful, having drawn in customers from outside the normal trade area and created a halo effect on the balance of the shopping centre.

Access to data will continue to play an important role in the evolution of shopping centres and the retail mix. Having access to real-time credit card data is allowing changes to occur more quickly and accurately while reducing risk, which is ultimately benefiting investors. 

Outlook for the shopping centre industry
While it’s a challenging time for retail, shopping centre owners and managers that understand their customers and  are investing in improvements to the retail mix and overall experience are more likely to succeed through this period. 

It’s important to remember that the economy and real estate for that matter, goes through cycles and while we are experiencing a softer market at the moment, ultimately, we can expect economic fundamentals to improve again. 

The key in the meantime is to  stay focused on delivering great experiences and remaining flexible to the changing needs  of the customers and community who visit and shop at our centres. By doing this, we will be able  to continue to deliver great outcomes for our clients and ensure our shopping centres remain relevant and a cornerstone of our communities for many more years to come.