Stockland will invest $51 million to create a new 12,200 square metre shopping centre within its $661 million, 2600-lot Stockland Newhaven residential community, 20 kilometres south-east of the Perth CBD. This is the first stage of a development that, over time, will become a full-scale, sub-regional town centre of approximately 25,000 square metres, when completed.
“We have the unique ability to not only design, develop and operate different types of real estate, but to bring them together in a way that creates thriving communities,” said Mr Dutton.
Construction of the new Harrisdale Shopping Centre will commence in May 2015,and it is expected to open in mid-2016.
Stockland Harrisdale Stage One will be anchored by the only full-line Woolworths supermarket in the primary trade area. It will also include one mini-major, 30 in-line specialty stores, five retail kiosks, six pad site retailers and 500 car parking spaces.
The site is well located to draw customers from surrounding suburbs with direct exposure to Nicholson Road, the area’s main North-South arterial link.
John Schroder, Group Executive and CEO Commercial Property at Stockland,said: “Developing Harrisdale aligns with our Retail strategy to grow our recurring income by developing and owning shopping centres that are number one in their community. This is the first stage of creating a full-scale sub-regional town centre will all of the services, cafes, food retail and amenities for our customers.”
“Harrisdale is destined to become the number one shopping centre in the area. At present, existing retail in this trade area is significantly undersupplied.”
Due to strong population growth, Stockland expects retail sales in the main trade area to double within twelve years of completion, reflecting average sales growth of 6.1 per cent per annum, compound.
“Our leasing activity is already well-underway and we’ve seen a very strong response from retailers eager to capitalise on this unique opportunity. We’ve executed an Agreement for Lease with Woolworths and already secured 48 per cent of total income and 25 per cent of specialty and kiosk income,” explained Mr Schroder.
Stockland Harrisdale is forecast to deliver an Internal Rate of Return (IRR) of 11.5 per cent and an initial yield of 7.8 per cent.
The primary trade area has an average household income of $136,000, which is 31 per cent above the Perth average.
The new shopping centre will also draw customers from a number of other rapidly growing residential communities in the area. The primary trade area has a population of 11,000 people and is forecast to grow at 6.7 per cent per annum between 2016 – 2021. The wider main trade area has a population of 52,000 people and is expected to grow at 2.7 per cent per annum between 2016 – 2021.
In addition to its surrounding Newhaven residential community, Stockland has two other active, masterplanned residential developments in the area: Calleya, a $575 million, 1800-lot community at Banjup, 18 kilometres from the Perth CBD; and Sienna Wood, a $391 million joint venture with the Department of Housing WA, comprising 3358 lots, 30 kilometres south-east of the Perth CBD.
Stockland has achieved considerable success on a similar multi-disciplinary project south-west of Perth, with the imminent completion of its $116 million redevelopment and expansion of Stockland Baldivis Shopping Centre adjacent to its Settlers Hill residential community.
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