This article is from the Australian Property Journal archive
WORK has started on the major redevelopment of Westfield Fountain Gate.
Westfield Fountain Gate is jointly owned by Westfield Retail Trust and Westfield Group, located approximately 40km south-east of the Melbourne CBD, and is the highest earning discount department store based shopping centre in Australia with retail sales over $700 million, currently valued at approximately $880 million.
The current centre has approximately 81,000 sqm of gross lettable area in addition to bulky-goods, homemaker and peripheral pad sites, which make up the 137,100 sqm of gross lettable area on the site.
It is anchored by Target, Big W, K-Mart, Woolworths, Coles, Bi-Lo, Aldi, Village cinemas, 8 mini-major tenancies and approximately 254 specialty retailers.
WRT and Westfield will invest $320 million to build a full-line Myer department store and add around 122 new stores totalling 34,600 sqm of gross lettable area.
WRT managing director Domenic Panaccio said Westfield Fountain Gate is an asset located in a high growth trade area and its performance has been strong over many years.
WRT’s share of the project cost is approximately $160 million with a forecast yield in the range of 7.0% – 7.5% and a forecast IRR in the range of 12% – 15 % including an expected enhanced property value in excess of $120 million (WRT share).
The completion of the project is expected in late 2012.
Australian Property Journal
