Stockland (ASX: SGP) announced that it will undertake a $377 million redevelopment of Green Hills Shopping Centre.
Stockland will redevelop and expand its Green Hills Shopping Centre at East Maitland in the Lower Hunter Valley of New South Wales. The property group is aiming to double the size of the Centre from 33,000 square metres to 70,000 square meters by mid-2018.
As part of the redevelopment process, Stockland has secured an agreement with David Jones to open a new, single-level 6,225 square metre department store in 2018. The expanded centre will also include discount supermarket stores like Big W and Target. The centre already has fully functioning Coles and Woolworths supermarkets. Stockland plans on introducing 141 additional speciality stores. The centre’s existing ‘mini-majors’ like Best&Less, Reject Shop, Blooms the Chemist and Hot Dollar will be improved.
Stockland is planning to invest around $1.6 million to dramatically increase the centre’s existing solar power generation capabilities. The centre will be using energy-efficient lighting and central air conditioning. It will also maximise the use of natural daylight.
According to Managing Director and CEO, Mark Steinert: “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 leave the primary trade every year.”
Although the preliminary site establishment works will commence immediately, the major construction work is set to defer until January 2016. The company does not want to disrupt the pre-Christmas retail trading season.
According to the announcement, the redevelopment project is estimated to generate more than 1,350 direct jobs during construction and more than 2,150 indirect jobs. On completion, the expanded centre is set to add 1,250 direct, full time jobs and about 1,200 indirect jobs within the regional economy.
Author: Simon Herrmann
Nov 04, 2015
Simon is a financial analyst at independent research firm Wise-owl who wants to change the world by disrupting the cliché approach to investment decision making with convergent thinking. Wise-owl’s goal is plain and simple: Find the best opportunities for our members by following a proven methodology and to create long-term value through high-quality advice, innovation, technology and education. We combine industry experience and the agile mentality of a start-up. Wise-owl is the future of stock market investing.