Dick Smith Collapse Drags Property Giants With It
A number of Australia’s biggest commercial property conglomerates will have their bottom line adversely affected by the collapse of the consumer electronic chain.
Over 300 Dick Smith retail outlets were closed earlier in the year, with a shortfall of over $260 million owed to creditors.
41 of those stores were owned by Vicinity Centres.
The Sydney Morning Herald reports that the closure of these stores is expected to “cut Vicinity’s moving annual turnover – a measure of sales – by 50 basis points, partly because Dick Smith sold expensive, big ticket items such as high-definition televisions and computers.”
Stockland, who leased 14 properties to Dick Smith, are expected to cut their annual turnover by $45 million.
However, it’s not all bad news. Some have managed to find replacements for the retail outlets sooner rather than later.
The Scentre Group, responsible for 40 former Dick Smith stores, told the SMH it had managed to re-lease all the outlets at “solid rents” to a range of retailers.
Dick Smith creditors and administration firm McGrathNicol into the liquidation phase back in July.