This article is from the Australian Property Journal archive
QIC Global Real Estate has unveiled a $575 million plan to double the size of the Eastland shopping centre at Ringwood and hopes the new David Jones store will lure international retailers like Zara and Gap to the centre.
QIC Global Estate managing director Steven Leigh told Property Review that David Jones will anchor the new redevelopment, which will increase Eastland to 127,000 sqm – making it one of the top five regional centres in Victoria, on equal footing with Westfield Doncaster. It will be one of the top 12 regional shopping centres in Australia.
In addition, the redevelopment will include a new town square, with a restaurant precinct and 1,100 additional car spaces and infrastructure to support commercial and hotel towers – similar to the current development underway at Chadstone.
David Jones has committed to 11,000 sqm of space on a 15-year lease.
Leigh told Property Review said negotiations are already underway with several international retailers, but declined to confirm whether Zara, Gap and Topshop are in talks to open their stores at Eastland. There is already a Costco format store due to open soon.
Zara, Gap and Topshop already have stores at GPT’s Highpoint and CFS Retail Property Trust’s Chadstone, however they do not have a presence in the outer east.
Leigh said the new Eastland is attractive to David Jones and international retailers because a MacroPlan Dimasi study shows that more than 30% of households in the primary trade area have incomes more than 20% above the Melbourne average.
Located in Melbourne’s outer easterb suburb of Ringwood, the expanded Eastland will have a catchment population of 2.5 million people within a 30-minute drive radius who have an annual retail expenditure of $32.6 billion and within a 45-minute drive, it will service 3.75 million people with annual retail turnover of $48.1 billion.
David Jones outgoing CEO Paul Zahra said Eastland will host the retailer’s “Next Generation Store” concept.
“In deciding to open a new store at Eastland we have given careful consideration to our optimal store portfolio size in light of our Omni Channel Retail strategy, as well as the location of our existing stores and our upcoming lease expiries.
“The location of our new Eastland store compliments our Omni Channel Retail strategy. It enables us to capitalise on the growth expected in the Ringwood catchment as a result of the significant redevelopment of the shopping centre and the surrounding catchment as well as the extensive investment in upgrading the existing transportation network,” Zahra said.
Leigh said the redevelopment has been on the drawing board for over 10 years and in the past decade, QIC has acquired over 20 sites surrounding Eastland, which has made this expansion possible. There is also scope for future additions.
The new centre will introduce 150 new specialty retailers taking the total to 350 stores, along with David Jones, Myer, K-Mart, Big W, Coles, Woolworths and Hoyts cinemas.
Victorian premier Dennis Napthine said the development will create 1,600 jobs during construction and on completion will employ 1,700 people in the retail sector. Probuild has been appointed to construct the new centre.
The government has also committed $66 million to upgrade the Ringwood train station and bus interchange, which is at the doorstep of Eastland. In addition, the City of Maroondah mayor Nora Lamont said the council will partner with QIC to deliver a new public library.
Dr Napthine said the redevelopment was a great vote for confidence for Ringwood and will revitalise this part of outer eastern suburbs.
Leigh said QIC is committed to the state and is investing over $1 billion worth of projects, including $550 million for 80 Collins St, also known as Nauru House, delivering 45,000 sqm of office space, a 250-room hotel and 5,800 sqm of retail space.
He added that the arrival of high end brands such as Dolce & Gabbana, Chanel’s new concept store at Russell St and Prada and Hermes directly opposite, makes 80 Collins St attractive to luxury international retailers.
Jones Lang LaSalle and Knight Frank have been appointed to run the leasing campaigns.
QIC is also spending $150 million to expand the Woodgrove shopping centre in Melton, doubling the size of the centre to 48,000 sqm.
Property Review
