Stockland to spend $222m on Wetherill Park redevelopment
The aim is to recreate malls as suburban hubs, with a focus on food and entertainment rather than the traditional apparel sector, under pressure from the internet and consumers reluctant to spend.
In one of the largest projects this year, Stockland will pour $222 million into its Wetherill Park shopping centre in western Sydney.
The site work is scheduled to start towards the end of next month. Stockland intends to expand the property by 15,000 square metres to give it a gross lettable area (GLA) of more than 70,000 square metres. It will be the 47th-biggest centre by size in the country, according to the Big Guns list from the 2013 Shopping Centre News survey. The biggest in NSW is Westfield Parramatta at 137,000 sq m. Westfield Bondi Junction is 128,759 sq m and Westfield Chatswood 76,696 sqm.
The Wetherill Park development includes a larger entertainment and leisure complex including an upgraded 12-screen Hoyts, additional restaurants and a new 800-seat food court. The centre has two supermarkets, a Big W and a Target, and 200 specialty stores, with average rent of $11,150 per square metre.
The chief executive of Stockland, Mark Steinert, forecast the redevelopment would provide "strong financial returns, deliver growth in market share and recapture a portion of the estimated $600 million expenditure in this trade area".
In its full-year result, Stockland's chief executive of commercial property, John Schroder, said net operating income rose 5 per cent thanks to the redevelopments of several malls. Mr Schroder said rents were subdued.
In Sydney's south, Brisbane-based syndicator Sentinel has paid $31.5 million for the Menai Central retail mall, which is 10,796 sq m with 275 car parks.
Frequently Asked Questions about this Article…
Stockland is investing $222 million into the Wetherill Park shopping centre redevelopment, one of the largest mall projects reported this year.
The redevelopment will add about 15,000 square metres, taking the centre to more than 70,000 sqm GLA, and will include a larger entertainment and leisure precinct with an upgraded 12‑screen Hoyts, extra restaurants and a new 800‑seat food court alongside the existing two supermarkets, Big W, Target and about 200 specialty stores.
According to the report, site work is scheduled to start towards the end of next month.
After adding roughly 15,000 sqm, Wetherill Park will have a gross lettable area of more than 70,000 sqm, which would make it the 47th‑biggest centre by size according to the 2013 Big Guns list. By comparison, some large NSW centres are Westfield Parramatta (137,000 sqm), Westfield Bondi Junction (128,759 sqm) and Westfield Chatswood (76,696 sqm).
Stockland says the strategy is to recreate malls as suburban hubs focused on food and entertainment rather than traditional apparel, aiming to capture more local spending. CEO Mark Steinert also forecast the redevelopment will deliver strong financial returns, grow market share and recapture a portion of the estimated $600 million expenditure in the trade area.
Stockland’s commercial property chief, John Schroder, reported that net operating income rose 5% thanks to the redevelopments of several malls, although he noted that rents remain subdued.
The article reports an average rent at the centre of $11,150 per square metre, while also noting that rents across Stockland's retail portfolio were described as subdued.
Yes. The article notes retail landlords are active in buying and revamping centres across Sydney. For example, Brisbane‑based syndicator Sentinel paid $31.5 million for the Menai Central retail mall, a 10,796 sqm site with 275 car parks.
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