This article is from the Australian Property Journal archive
SHOPPING centre owner and developer Sandhurst Retail has announced a $300 million development pipeline sub-regional, neighbourhood shopping centres, and large format retail properties.
The first sites to be delivered within the pipeline, located in Melbourne fringe suburbs of Wollert and Sunbury, and Yamanto in Brisbane, and will deliver a combined estimated gross lettable area of 50,000 sqm and estimated end value of $200 million.
Coles, Kmart and petrol station operators have agreed to pre-commitments at some centres.
Sandhurst Retail is led by Villawood Properties joint executive director, Tony Johnson, who will serve as the company’s non-executive director.
Johnson said he identified a gap in the market for a mixed use growth areas retail specialist that would “reposition the value of retail precincts in Australia’s growth areas with the needs of the community in mind”.
“The growth area residential market continues to be very strong. We are seeing some establishing regions in Victoria and Queensland experiencing population growth year-on-year of well over 20% and with great speed,” he said.
“The need for high quality retail amenity is a critical component of growth area development but is often overlooked, resulting in poorly-designed, under-performing shopping centres that are underutilised, creating a declining trend in foot-fall and high vacancies,” he said.
Sandhurst Retail grew out of Villawood Properties into an independent business and remains separate.
“From a residential developer’s point of view, there is significant value in on-selling the retail component of a masterplan to an entity who shares the same values and long term vision as them, knowing it will be built and operated by a company that understands the needs of the community and will be delivered in line with the expectations of the people who live there.
Sandhurst Retail has appointed Vivek Subramanian, formerly of Ranfurlie Asset Management and Vicinity Centres forerunner Novion Property Group, as director and to oversee the delivery of the pipeline.
