New $51m centre for Harrisdale
Stockland will build a $51 million, 12,200sqm shopping centre at Harrisdale, 20km south-east of the Perth CBD.
The new shopping centre will be part of the $661 million, 2600-lot Stockland Newhaven residential community and is the first stage of a planned 25,000sqm town centre.
The centre will be anchored by the only full-line Woolworths supermarket in the primary trade area.
It will also include one mini-major, 30 specialty stores, five retail kiosks, six pad site retailers and 500 parking bays.
The site is expected to draw customers from surrounding suburbs with direct exposure to Nicholson Road, the area's main north-south arterial link.
Stockland's WA general manager Col Dutton said the shopping centre would serve the new community.
"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 start this month and it is expected to open in mid-2016.
John Schroder, group executive and chief executive of commercial property at Stockland, said the development was aligned with Stockland's retail strategy of growing recurring income by developing and owning shopping centres.
"This is the first stage of creating a full-scale sub-regional town centre with all of the services, cafes, food retail and amenities for our customers," Mr Schroder said.
"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 12 years of completion, reflecting average sales growth of 6.1 per cent per annum, compound.
Mr Schroder said there had been a strong response to the leasing campaign.
"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," he said.
Stockland Harrisdale is forecast to deliver an internal rate of return 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 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.
