Veteran executive Peter Huddle made Vicinity Centres CEO

Veteran executive Peter Huddle has beaten out others for the top job after the listed Chadstone co-owner brought forward the exit of its former boss.

18/11/19: CEO of Vicinity Centres, Peter Huddle at the QVB in Sydney. John Feder/The Australian.

Retail property giant Vicinity Centres has tapped veteran executive Peter Huddle as its permanent chief executive in the wake of its former chief Grant Kelley departing last year.

The company, which co-owns Melbourne’s Chadstone Shopping Centre with billionaire John Gandel, has bounced back on the wave of relief spending after the pandemic but faces challenges as an economic slowdown looms.

Mr Huddle was acting in the role after being elevated from the post of chief operating officer after Mr Kelley’s swift exit.

Mr Kelley stepped down from the top job after the company’s annual general meeting in November, amid claims of inappropriate conduct from a senior member of Vicinity’s management team.

The Adelaide 36ers owner denied the allegations, which Vicinity said fast-tracked his departure from the company last November.

Mr Huddle’s appointment had been expected by market analysts as he had a long history in retail property in Australia and globally, and he beat out a field of applicants following a global search. His appointment is effective on February 1.

Mr Huddle, who had been acting chief executive for Vicinity since mid-November, joined the company as chief operating officer in March 2019, reporting to the then CEO.

He has had a focus on building up the business as shopping centres have become more like lifestyle centres, rather than simply housing retail outlets.

He also helped lead the company through Covid-19 when billions were wiped off the value off mall portfolios.

Peter Huddle lead Vicinity’s Covid-19 operational response, Picture: John Feder

The company said that the pandemic presented Vicinity with “unprecedented complexity” and he cited significant regulatory changes, as tenants were granted relief. But shopping centres stayed open as essential services and the landlord also nursed some chains back to health.

Mr Huddle lead Vicinity’s operational response, and at the same time, worked on measures to help it recover. His fixed pay will be $1.5m per annum, with short term incentive of up to $2.1375m and a long term incentive of $2.1m.

Prior to joining Vicinity, he had a long career at Westfield with roles in Australia, Brazil, and the US.

Notably, Mr Huddle had management responsibility for top projects including Westfield World Trade Centre in New York and Century City in Los Angeles.

After the acquisition of Westfield by Unibail-Rodamco in 2018, which formed the largest global retail REIT, and ultimately saw the famed Lowy family exit, Mr Huddle was appointed COO of the US business.

Vicinity chairman, Trevor Gerber said, Mr Huddle’s appointment reflected his leadership skills, deep commercial experience, and exemplary track record at Vicinity”.

Vicinity first said last October that Mr Kelley would depart the retail property group, but at the time suggested he would retire by June 30 next year in order “to facilitate a smooth and co-ordinated transition”.

Vicinity then said it had sanctioned Mr Kelley for several cases of misconduct in the workplace, and as a result of an internal investigation, had come to a mutual agreement with him to bring his retirement forward.

Mr Kelley, who was chief executive at Vicinity since 2018, said at the time he had co-operated fully with Vicinity’s investigation, and denied the allegations made against him.

Vicinity shares closed down 1 per cent at $2.06.