Stockland Announces $377M Redevelopment Of Green Hills Shopping Centre
Stockland has confirmed that it will undertake a $377 million redevelopment and expansion of its Green Hills Shopping Centre at East Maitland, New South Wales.
Stockland will more than double the size of the centre from just under 33,000 square metres of Gross Lettable Area (GLA) that exists today to create around 70,000 square metres of GLA when the redevelopment is complete in mid-2018.
As an integral part of redevelopment, Stockland has secured an agreement for lease with David Jones, which will open a new, single-level, 6,225 square metre department store at Stockland Green Hills in 2018.
In addition to introducing David Jones to the Lower Hunter Valley, the expanded centre will include Big W and an exciting, new format Target with its latest products and customer service innovations. Stockland will also develop the biggest and best new Dan Murphy’s store in the trade area.
Stockland Green Hills is already home to Coles and one of the best-performing, full-line Woolworths supermarkets in Australia. Stockland will introduce 141 additional specialty stores, bringing the total number of specialties to more than 225 stores. The centre’s existing ‘mini-majors’ will be retained and improved, including Best&Less, Reject Shop, Blooms the Chemist and Hot Dollar.
Preliminary site established works will commence immediately, however, Stockland will defer the start of major construction works until the new year so as not to disrupt the crucial pre-Christmas retail trading season. Works will commence in January 2016. Stockland has appointed Brookfield Multiplex as its lead contractor on the project.
Stockland will create a contemporary Entertainment and Lifestyle Precinct, including a garden courtyard and outdoor pavilion dining area fronting Mitchell Drive. In addition, Stockland will deliver around 1,500 new car parking spaces at Green Hills, which will take the total to around 3,100 car parking spaces to accommodate the increased number of customers frequenting the centre.
Managing Director and CEO at Stockland Mark Steinert said, “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.”
The redevelopment is expected to achieve an incremental internal rate of return (IRR) of more than 12 per cent in the ten years post-completion and an incremental, stabilised funds from operators (FFO) yield of just over 7 per cent.
Group Executive and CEO Commerical Property at Stockland John Schroder said, “Green Hills is already one of our highest performing centres, and one of the retail industry’s most productive. This $377 million redevelopment will take Green Hills from strength to strength to ensure it becomes an absolute powerhouse within the regional economy.
“Stockland Green Hills will be a vibrant and thriving shopping, leisure and entertainment destination.
“There’s already an incredible buzz around David Jones coming to Stockland Green Hills, and with 225 specialty stores, including the best fresh food retailers, eight restaurants and a new casual dining precinct, we’ll deliver the most comprehensive and existing shopping centre in the Hunter trade area.”
The redevelopment of Stockland Green Hills 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 in retail, customer service and hospitality and an estimated 1,200 indirect jobs for local suppliers and service providers within the regional economy.