This article is from the Australian Property Journal archive
WESTFIELD Knox is snapping at the heels of the fashion capital, Chadstone shopping centre, following the approval of a $450 million expansion, potentially making it the largest shopping centre in Australia.
Knox City Council approved the redevelopment of Westfield Knox at Wantirna South, jointly owned by Scentre Group and funds managed by Dexus Property Group.
The $450 million expansion will increase the centre’s total gross lettable area from 142,500 sqm to 188,500 sqm, which could overtake Chadstone as the largest shopping centre in Australia by retail GLA.
Novion Property Group and Gandel Group are undertaking a $580 million redevelopment of Chadstone to increase the total centre GLA to 213,300 sqm. However, excluding the 10-level 34,000 sqm office component, the expanded Chadstone will fall behind Westfield Knox, with a retail GLA of 178,200 sqm, up from the current GLA of 156,600 sqm.
On the plus side, Melbourne can boast it has two of Australia’s largest shopping centres.
Construction of Westfield Knox will start in 2016. The development will involve the removal of the existing bus interchange. Knox Mayer Darren Pearce said the revamp will revitalise Knox’s busiest precinct and generate more than 8,000 jobs, including 2,000 retail related jobs and 1,800 construction jobs.
“Westfield Knox plays a vital role in Knox, being a significant feature of the area and contributing economically, socially and culturally,” Mayor Pearce said. “The expansion of this shopping centre will invest in the future of the Knox community through the generation of employment opportunities, economic stimulus and entertainment and social activities,”
Co-owners Scentre Group and Dexus are tight lipped on the number of new stores within the expanded centre. They have not disclosed whether there will be international brand line up with the likes of Zara, Gap, Uniqlo, H&M and Top Shop, just to name a few.
The revamped Westfield Knox will go head to head with QIC Real Estate’s Eastland shopping centre, just 9km away.
QIC is spending $575 million to makeover Eastland, increasing the size to 127,000 sqm. QIC signed up David Jones as the anchor tenant in the expanded centre.
Melbourne’s outer eastern suburbs have become the new battleground for these two major shopping centre owners, looking to tap into the wealthier population nearby. Figures from MacroPlan Dimasi showing households in the primary trade area have incomes more than 20% above the Melbourne average. Westfield Knox and Eastland shopping centre have a catchment population in excess of 2.5 million people within a 30-minute drive radius, who have an annual retail expenditure of $32.6 billion (September 2013) and within a 45-minute drive, it will service 3.75 million people with annual retail turnover of $48.1 billion.
Australian Property Journal
