[PRO] Westfield Marion

[steveadl]

They're also keeping an eye out for external acquisitions, which - if it occurs - will likely push a few of their development projects back further.

[monotonehell]

They're also keeping an eye out for external acquisitions, which - if it occurs - will likely push a few of their development projects back further.

I dare say that they're eyeing off the fire sales in the US. There's a few "malls" in financial trouble over there ATM. I bet Westfield would like to expand their successful operations over there.

[pushbutton]

Given all the trouble Centro has had lately, I'm surprised Westfield haven't taken over Colonnades yet. It's exactly right for Westfield in terms of it's design and quality and mix of retailers, plus it's far enough away from Marion to have its own distinct catchment area and a growing local population, plus plenty of room for further expansions.

Not that Centro are not doing a good job of managing it because I think they are, but as I said Centro have been looking to offload some of their centres just to survive and I would have thought Westfield would have been virtually moving mountains to get their hands on Colonnades.

[Stubbo]

From News.com.au:

Westfield to start projects worth $1bn
From: AAP May 04, 2010 10:58AM

Westfield to start billion-dollar build
Westfield Group expects to start about $1 billion worth of development projects in 2010.
Views today: 0Sorry, this video is no longer available.SHOPPING centre giant Westfield Group reconfirmed its 2010 guidance and expects to start about $1 billion worth of development projects in 2010 after an improvement in global markets.

In its first quarter update today, the company said it was experiencing strong results from the Australian and New Zealand portfolios, notwithstanding the anticipated softening sales growth for the quarter.

These two countries experienced nearly full occupancy at 99.5 per cent.

Joint group managing director Steven Lowy said retail sales and occupancy had also improved in the United States and the United Kingdom after a reduction in bankruptcy store closures.

"Given the improved environment we are now confident to expand our development program for the current year to around $1 billion of new project," Mr Lowy said.

He said the decision to start developments this year was reversing the decision of one year ago to put project commencements on hold.

Of the $1 billion, about $800 million of the new projects will be in Australia.

"Whilst we are not yet ready to commit to major projects in the United States or the United Kingdom outside of London, we are undertaking particularly in the United States a number of smaller projects totalling around $200 million," Mr Lowy said.

Mr Lowy reconfirmed the company's 2010 distribution forecast of 64 cents per security based on a payout level of between 70 and 75 per cent of operating earnings.

Looks promising, heres hoping some is earmarked to Marion. With the construction in full swing for the Swimming Centre and GP Plus, it does make sense given an even higher flow of people into that area with the new facilities. I wonder if any more office space will be created or if there is demand for it.

[Ben]

From News.com.au:

Westfield to start projects worth $1bn
From: AAP May 04, 2010 10:58AM

Westfield to start billion-dollar build
Westfield Group expects to start about $1 billion worth of development projects in 2010.
Views today: 0Sorry, this video is no longer available.SHOPPING centre giant Westfield Group reconfirmed its 2010 guidance and expects to start about $1 billion worth of development projects in 2010 after an improvement in global markets.

In its first quarter update today, the company said it was experiencing strong results from the Australian and New Zealand portfolios, notwithstanding the anticipated softening sales growth for the quarter.

These two countries experienced nearly full occupancy at 99.5 per cent.

Joint group managing director Steven Lowy said retail sales and occupancy had also improved in the United States and the United Kingdom after a reduction in bankruptcy store closures.

"Given the improved environment we are now confident to expand our development program for the current year to around $1 billion of new project," Mr Lowy said.

He said the decision to start developments this year was reversing the decision of one year ago to put project commencements on hold.

Of the $1 billion, about $800 million of the new projects will be in Australia.

"Whilst we are not yet ready to commit to major projects in the United States or the United Kingdom outside of London, we are undertaking particularly in the United States a number of smaller projects totalling around $200 million," Mr Lowy said.

Mr Lowy reconfirmed the company's 2010 distribution forecast of 64 cents per security based on a payout level of between 70 and 75 per cent of operating earnings.

Looks promising, heres hoping some is earmarked to Marion. With the construction in full swing for the Swimming Centre and GP Plus, it does make sense given an even higher flow of people into that area with the new facilities. I wonder if any more office space will be created or if there is demand for it.

Unfortunatly not.

from the Asx the projects in 2010 are:

Sydney City - $350M
Belconnen - $125M
Fountain gate - $250

US - $200M USD

Marion is the only South Australian centre in "pre-development phase".

In 2011 the group expects to commence another $500m - $1B worth of development.... There is currently $10B is pre development phase in Aus. So Marion has a 1 in 10 chance approx of commencing in 2011.

[Port Adelaide Fan]

Marion upgrade still in limbo

WESTFIELD Marion’s pending redevelopment remains stalled three years after development plans were approved by Marion Council.

Plans for the $280 million redevelopment - tipped to create almost 1500 jobs in the construction and retail industries - have been left in limbo, while Westfield concentrates on other Australian projects, including its $1.2 billion development in the Sydney CBD.

Westfield won development approval from the council’s Development Assessment Panel (DAP) in August 2007 with plans to expand the centre by 18,000sq m, adding 90 shops, including some street-facing and a new car park.

“Marion is indeed one of the centres flagged as a future major development. However, we have not indicated any specific timing at this stage,” Westfield corporate affairs manager Julia Clarke said.

more: http://guardian-messenger.whereilive.co ... must-wait/

[skyliner]

I wonder what such a huge suburban CBD would to Adelaide city CBD? We have many smaller examples in towns across Aust where a new area has developed and the central business area has turned into as vertual 'ghost town' - eg Ipswich QLD, Maryborough Vic and to some extent Mount Gambier - about one in 10 shops shut in Commercial St in 2004. (and they want to build a massive development on Penola Rd there as well). Just a thought guys.

ADELAIDE - TOWARDS A GREATER CITY CBD

[Wayno]

I wonder what such a huge suburban CBD would to Adelaide city CBD? We have many smaller examples in towns across Aust where a new area has developed and the central business area has turned into as vertual 'ghost town' - eg Ipswich QLD, Maryborough Vic and to some extent Mount Gambier - about one in 10 shops shut in Commercial St in 2004. (and they want to build a massive development on Penola Rd there as well). Just a thought guys.

All the more reason to heavily populate the CBD! It's the "Mother of all TODs" and will thrive if treated so.

[pushbutton]

Westfield Marion already has about 320 stores, so adding another 90 is hardly going to make a massive difference to Adelaide City CBD! There is ample room for major suburban shopping centres to happily co-exist alongside city centre shopping strips like Rundle Mall and the same concerns have been raised, and proven unfounded, every time a suburban centre has expanded.

Before companies like Westfield even begin to consider a major expansion, they always do extensive work to make sure there will still be sufficient demand, and those studies also include a consideration of any impact on neighbouring centres. In addition to this, when considering developments for approval, councils always consider any potential impact on neighouring centres and on Adelaide CBD. If either Westfield or Marion Council were not confident that there was sufficient demand for an increase in shops they would not proceed with such plans.

Also, to some extent the supply and demand of shops and other services works both ways. If more shops are avaiable in a city or suburb, then (assuming all other factors are working well too) it tends to encourage more people to move into those areas because they have better services and facilities. More people in the area means there's more demand for more shops.

As the overall population of metropolitan Adelaide (or any other city) continues to expand, the demand for more shops and shopping centres will always continue to expand too.

So in short Rundle Mall has absolutely nothing to fear from Westfield Marion, although like any other CBD shopping area it is still to some extent less popular with a lot of shoppers because of access and parking being less favourable, and of course the services and facilities of a major suburban centre are not all available in an open air public shopping street either. However this is nothing new and some people actually prefer to shop in the CBD for a variety of reasons.

[jk1237]

I wonder what such a huge suburban CBD would to Adelaide city CBD? We have many smaller examples in towns across Aust where a new area has developed and the central business area has turned into as vertual 'ghost town' - eg Ipswich QLD, Maryborough Vic and to some extent Mount Gambier - about one in 10 shops shut in Commercial St in 2004. (and they want to build a massive development on Penola Rd there as well). Just a thought guys.

ADELAIDE - TOWARDS A GREATER CITY CBD

I will need to confirm, but I think the Modbury Centre has more shops and retail space than Marion. Although TTP isnt as large on its own, the Modbury Triangle, Tea Tree Plus, Pelican Plaza and other retail centres on Reservoir/Smart/NE Roads make Modbury larger. My point is that after the expansion, Marion will be slightly larger than Modbury now, so its not going to have a huge impact on the CBD. Infact Id say a Marion expansion will hurt Glenelg and Colonades more than anything else, but atleast Glenelg can fall on its tourist trade.

[skyliner]

I see your points guys- they do research their markets. In those markets are the attractional elements that shift economic behaviour from what was before - geographically. I was basing my comments on observations in other places where expansion outside the CBD just kept going. When you get an aggregate of the effect of many developing centres whilst the main CBD does much less, the tide turns on it. Like Wayno said, the real salvation of the CBD is to increase the resi population as in Brisbane.

ADELAIDE - TOWARDS A GREATER CBD SKYLINE

[Ben]

Something big is happening at Marion but I don't know what. In the David Jones mall nearly every single shop has closed down.

- Dick Smith has moved (3 normal shops wide)
- Motoquipe has closed down
- Chi Body Massage has relocated
- Imagine If has relocated to Gleneleg
- Pinochio's Cafe has closed down
- professionail has closed down

and I think a few more. the whole mall is boarded up excpet JB Hi Fi on the opposite side.

[pushbutton]

Interesting. I'm pretty sure that won't have anything much to do with the redevelopment per se, but it does seem like maybe they are going to make that section of mall into an area thatonly has a particular type of shop (like a high-end fashion mall, for example).

Westfield do seem to be favouring that approach in an increasing number of their centres at the moment so it may be the plan.

[Ben]

Something big is happening at Marion but I don't know what. In the David Jones mall nearly every single shop has closed down.

- Dick Smith has moved (3 normal shops wide)
- Motoquipe has closed down
- Chi Body Massage has relocated
- Imagine If has relocated to Gleneleg
- Pinochio's Cafe has closed down
- professionail has closed down
- Millers Fashions (2 standard shops moving near Coles)
- Fellas Gifts (moving near Coles)

and I think a few more. the whole mall is boarded up excpet JB Hi Fi on the opposite side.

Seems they are turning this mall into a High End fashion mall (for mall standards) with big signage up for the following new stores:

- Oroton
- Mimco
- Witchery
- Wittner

With about another 10 opening soon. Millers is moving near coles, as is fellas gifts. this will leave JB Hifi down there which wouldn'ty fit in with the new upmarket stores so likely to be moved, interesting to note this was to be the entrance to the "new mall" as part of the $280m upgrade so I would think this is likely to go ahead in early - mid 2011.

[pushbutton]

How was that area to be "the entrance to the new mall"?

The plans I saw involved a new mall on level 2 including a new major store (probably a supermarket) next to Kmart, and a mall running in a more or less straight line from there to roughly where David Jones is. There was also talk of possibly building a new David Jones just behind the existing one so that the space where the existing store is could be turned into more shops, or possibly upmarket restaurants to complement the food court.

I have no idea about changes on level one though so I'd be interested to know if you have any details about this.