This article is from the Australian Property Journal archive
BRISBANE’S largest regional shopping centre, Westfield Carindale, is set to undergo a $300 million makeover after securing funding from a French and Japanese bank.
The centre which is jointly owned by Carindale Property Trust and the Lend Lease-managed Australian Prime Property Fund Retail.
Westfield Carindale currently has 114,930 sqm of gross lettable area and is anchored by two department stores, two discount department stores, three supermarkets, an eight-screen cinema and approximately 290 specialty retailers.
The $300 million project will include a new parallel mall over two levels anchored by a new full-line Coles supermarket, a relocated larger format Target store and around 120 new tenancies adding a further 22,000 sqm of space. An additional feature of the development is a new dining precinct that will sit adjacent to an outdoor mall.
The project will also include a new relocated library facility that will be operated by Brisbane City Council, a new kids’ precinct, and an improved car park management system that features a parking guidance system.
Carindale Property Trust has refinanced its existing $55 million facility with a new $230 million five-year secured facility with France’s largest retail bank Credit Agricole and Japan’s Sumitomo Mitsui Banking Corporation, to fund its share of the redevelopment.
The trust’s share of the project cost is approximately $150 million with a forecast yield in the range of 7.0% – 7.50%.
The trust expects to maintain the annual distribution at the current level of 27.80 cents per unit for the duration of the development.
Westfield Australia and New Zealand managing director Robert Jordan said the property continues to be a major drawcard for shoppers and retailers.
“We believe conditions are now appropriate for the project to start.
“The redeveloped centre will provide Brisbane with a superior retail facility, combining the very best in shopping, entertainment and leisure,” he added.
Enabling works will start in late 2010 and the main project is scheduled to start at the beginning of 2011, with completion expected in late 2012.
Australian Property Journal
