Construction is ready to start on a $300 million expansion at the Lend Lease-owned Lakeside Joondalup Shopping City, making it the biggest shopping centre in WA and also home to a new Myer store.
Gary Horwitz, Lend Lease's head of retail business, said the shopping centre's strong trading record gave it a place in Australia's top 20 shopping centres and would support the investment in the expansion, which was big even by shopping centre standards.
"Lakeside has a unique sales and growth market," Mr Horwitz said.
"Sales growth at the centre is increasing 10 per cent year-on-year and remains on track to continue."
As well as a 12,000sqm Myer department store, the expansion would also include a new line-up of restaurants, the addition of about 100 national and local retailers and 5000 car bays.
Mr Horwitz said the new restaurants would create a new dining precinct around Station Square, the entrance to the shopping centre from Joondalup train station.
"Station Square's vibrant new al fresco dining precinct will improve the connectivity to the existing rail and bus interchange, making it an active hub of Perth," Mr Horwitz said.
The redevelopment increases Lakeside Joondalup's total area from 71,000 to 96,000sqm, surpassing Westfield Carousel, which was previously WA's biggest shopping centre with 90,361sqm.
Mr Horwitz said Lakeside Joondalup's ability to record strong sales growth even during the slowdown in consumer spending that hit retailers hard had resulted in strong level of inquiry for new space to be leased at the shopping centre.
The $300 million redevelopment will be financed by Lend Lease's Australian Prime Property Fund Retail and an unlisted property fund. Lend Lease's project management and construction business will design and construct the extension, which will have a contract value of about $208 million.
Australian Prime Property Fund Retail fund manager David McNamara said the redevelopment fits with the fund's retail strategy of owning shopping centres that are key facilities in their trade area. "With Joondalup being the fastest growing area in Perth, the addition of Myer will further cement Lakeside Joondalup's position as the leading centre in the area," Mr McNamara said.
Lend Lease bought the $450 million Lakeside Joondalup centre from ING in 2009.