This article is from the Australian Property Journal archive
VICINITY Centres has put the proposed $480 million redevelopment of Roselands shopping centre on hold after failing to strike a deal with a major tenant.
Vicinity had gained approval in May this year to redevelop the five decade old centre, including increased retail floor area, a new cinema and entertainment area and additional car parking spaces.
Opened in 1965, Roselands was once considered the largest shopping centre on the southern hemisphere. The centre currently comprises 61,417 sqm and 3,600 spaces car park and is anchored by Myer, Target, Coles and 170 speciality stores.
CEO Angus McNaughton said the redevelopment has been postponed indefinitely as a result of commercial terms being unable to be agreed with a major tenant currently trading within the centre.
Sources told Australian Property Journal, the major tenant was Myer, which earlier in the year unveiled a strategy to close stores as part of a $600 million five-year transformation plan.
Myer is expected to close as many as 20 of 67 stores across Australia.
“We are disappointed with the outcome of negotiations with the major tenant which has consequently halted the progress of the substantial expansion and redevelopment of Roselands.
“The breadth and quality of Vicinity’s development pipeline remains extensive and provides us with significant opportunities to further strengthen the quality and growth potential of the portfolio,” he added.
McNaughton said Vicinity will now turn its attention to a refurbishment program at Roselands.
Australian Property Journal
