This article is from the Australian Property Journal archive
STOCKLAND has unveiled a massive $377 million investment to expand and double the size of the Green Hills shopping centre at East Maitland in the Lower Hunter Valley of New South Wales.
Stockland Green Hills currently houses 90 specialty stores and is anchored by Big W, Woolworths and Coles. The investment will see the centre which is currently just under 33,000 sqm of Gross Lettable Area (GLA) increase its size to around 70,000 sqm of GLA when the redevelopment is complete in mid-2018. Stockland has appointed Brookfield Multiplex as its lead contractor on the project.
Stockland has also secured a major leasing coup with high-end retailer David Jones set to open a new single-level 6,225 sqm department store in 2018.
In addition to introducing David Jones to the Lower Hunter Valley, the expanded centre will include Big W, Target, new concept JB Hi-Fi Home store and South African retail group Pepkor’s Harris Scarfe department store and Stockland will also develop the biggest Dan Murphy’s store in the trade area.
The expansion will introduce 141 additional specialty stores, bringing the total number of specialties to more than 225 stores. The centre’s 16 mini-majors will be retained and improved, including Best&Less, Reject Shop, Blooms the Chemist and Hot Dollar.
Furthermore there will be a new entertainment and lifestyle precinct and around 1,500 new car parking spaces, taking the total to around 3,100.
CEO Mark Steinert said the redevelopment is expected to achieve an incremental internal rate of return (IRR) of more than 12% in the ten years post-completion and an incremental, stabilised funds from operations (FFO) yield of just over 7%.
“We’ve identified Stockland Green Hills as a highly accretive redevelopment opportunity. It’s already one of the most productive centres in Australia and this expansion will enable us to capture a portion of the estimated $867 million of escape expenditure that leaves the primary trade area every year,” Steinert said.
CEO commercial property John Schroder said Green Hills is already one of the group’s highest performing centres and one of the retail industry’s most productive.
Stockland Green Hills is already the largest shopping centre in its trade area and its current specialty retail sales productivity is $14,275 per sqm.
“This $377 million redevelopment will take Green Hills from strength to strength to ensure it becomes an absolute powerhouse within the regional economy,” he added.
The redevelopment is estimated to generate more than 1,350 direct jobs during construction and more than 2,150 indirect jobs. On completion, the expanded centre will create more than 1,250 direct new full time jobs and an estimated 1,200 indirect jobs.
The centre will also boast high green credentials. Stockland already has a number of solar photo-voltaic cells installed on the centre’s roof and is planning to invest around $1.6 million to dramatically increase the centre’s solar power generation capabilities with the installation of a 700kW photo-voltaic system as part of the redevelopment.
Other environmental initiatives include 160kL rainwater tank for toilet flushing and landscape irrigation, recycling of fire system test water and the installation of water and energy metering and building management systems.
Australian Property Journal
