This article is from the Australian Property Journal archive
STOCKLAND has unveiled plans to develop a new $51 million shopping centre within its $661 million, 2600-lot Newhaven residential community, 20km south-east of Perth's CBD.
The 12,200 sqm shopping centre is the first stage of a development that, over time, will become a full-scale, sub-regional town centre of approximately 25,000 sqm.
Construction of the new Harrisdale shopping centre will commence in May 2015, and it is expected to open in mid-2016.
“Activating this land for a new shopping centre within our own residential community demonstrates how we can apply our diversified development capabilities for the convenience and benefit of our customers,” Stockland`s WA general manager Col Dutton said.
The centre will be anchored by the only full-line Woolworths supermarket in the primary trade area. It will also include one mini-major, 30 in-line specialty stores, five retail kiosks, six pad site retailers and 500 car parking spaces.
Stockland`s CEO commercial property John Schroder said developing Harrisdale aligns with the group`s retail strategy to grow recurring income by developing and owning shopping centres within its community.
“Harrisdale is destined to become the number one shopping centre in the area. At present, existing retail in this trade area is significantly undersupplied. Due to strong population growth, Stockland expects retail sales in the main trade area to double within 12 years of completion, reflecting average sales growth of 6.1% per annum, compound.
“Our leasing activity is already well-underway and we’ve seen a very strong response from retailers eager to capitalise on this unique opportunity. We’ve executed an Agreement for Lease with Woolworths and already secured 48% of total income and 25% of specialty and kiosk income,” Schroder said.
The primary trade area has an average household income of $136,000, which is 31% above the Perth average.
Stockland Harrisdale is forecast to deliver an Internal Rate of Return (IRR) of 11.5% and an initial yield of 7.8%.
Australian Property Journal
