Stockland announces $116 million redevelopment in Rockingham
New ‘full line’ Coles and Woolworths supermarkets and a new K-Mart will be features of the $116 million redevelopment and expansion of Stockland’s Baldivis Shopping Centre in Rockingham, south of Perth.
Two new mini-majors and 75 new specialty retailers will take the centre to a total of 95 speciality stores. The redevelopment will also include a new 275 seat indoor and outdoor dining terrace and 1,400 car parking spaces.
Developer Stockland today announced the project to quadruple the size of the shopping centre with work to begin early next year. The centre will expand from 7,000 square metres to create a gross lettable area of about 29,500 square metres.
Work will be completed in two stages: the first set for completion towards the end of 2014 and the second in mid-2015.
Baldivis is one of the fastest growing regions in Western Australia, with a population growth of 7.6% per annum.
“Redeveloping our most productive shopping centres is a key part of our growth strategy,” Stockland managing director and CEO Mark Steinert said.
“At Stockland Baldivis we’ll create a first class retail destination alongside our Settlers Hill residential community and Affinity retirement living village for the benefit and convenience of our residents and visitors to the region.”
The shopping centre will continue to trade through the expansion. Stockland says it will work closely with the builder to minimise any disruption.
“Baldivis will be the third major shopping centre redevelopment project undertaken in our latest wave of projects,’’ John Schroder, CEO commercial property at Stockland, said.
‘’Earlier this year we began a $115 million project at Hervey Bay on the Fraser Coast and a $222 million redevelopment at Wetherill Park in western Sydney.”
Baldivis is forecast to deliver an incremental internal rate of return of 13%. After the redevelopment, the funds from operations economic yield forecast is 8.0%.
“Stockland Baldivis is our most productive centre with current total moving average turnover of $15,697 per square metre,” Schroder said.
In the recent Shopping Centre News Mini Guns 2013 lead table, Baldivis was rated the best performing centre in Australia based on total MAT sales per square metre.
“Over the next 18 months, we’ll transform the neighbourhood centre that exists today into the area’s premier shopping centre destination,” Schroder said. ‘’This project will generate hundreds of new jobs in construction and retail and inject millions of dollars into the local economy.”
The design will incorporate the highest environmental standards and expected to gain a 4 Star Green Star Rating (Retail Centre Design v1 by the Green Building Council of Australia).
Key facts about Stockland Baldivis redevelopment:
- $116 million redevelopment and expansion
- Construction scheduled to commence in early 2014 and expected to be completed by mid-2015
- The redevelopment will increase the size of the centre from 7,000 square metres to approximately 29,500 square metres
- The redeveloped centre is forecast to deliver an incremental Internal Rate of Return (IRR) of 13 per cent. Funds From Operations (FFO) economic yield is forecast to be 8.0 per cent.
- Redevelopment to include a full-line Coles, full-line Woolworths, two mini-majors and a total of 95 speciality stores
- 275 seat indoor and outdoor dining terrace