Estimated costs for Scentre Group’s updated proposal to build the state’s largest shopping centre in Booragoon have escalated by nearly $300 million.
Estimated costs for Scentre Group’s updated proposal to build the state’s largest shopping centre in Booragoon have escalated by nearly $300 million.
An application to expand Westfield Booragoon was lodged with the state government’s State Development Assessment Unit pathway in late 2021, with the cost of the development estimated to be $500 million.
However, Scentre Group has submitted an updated application to the SDAU, estimating the costs to be $792 million, with documents dated September and November 2022.
The group is seeking Western Australian Planning Commission’s approval to partially demolish the existing shopping centre and City of Melville library to make way for a 42,081 square metre shopping centre expansion.
The shopping centre on Riseley Street, formerly known as Garden City Booragoon, was rebranded as Westfield Booragoon when Scentre Group acquired a half stake in the precinct from AMP Capital in 2019.
In 2021, AMP was replaced by Dexus as the investment fund entity that owns the remaining 50 per cent share.
A WAPC report said the applicant had advised the estimated cost has increased due to design changes in addition to labour and material cost escalations.
“Whilst the revised development plans depict the development being progressed in two stages, the applicant has advised that the development is proposed to be delivered as a single project with largely consecutive construction phases,” the report said.
“The applicant intends to open parts of the centre progressively and gain their occupancy, whilst construction is still occurring on other portions of the site.”
AMP Capital announced in 2012 that it would invest up to $750 million to upgrade Garden City and increase the 72,000sqm shopping centre to 120,000sqm, which would make it the largest shopping centre in WA.
It received approval to progress the 50,000sqm expansion of the centre but works were put on hold after the Scentre Group deal.
Following the deal with Dexus and Scentre Group, the latter’s initial 2021 application proposed less retail floorspace than AMP’s approved plan.
The proposed expansion would result in 114,620sqm of net lettable area, shop tenancies ranging from two to three storeys, restaurants and civic space.
Scentre Group is also proposing to add 251 car parking bays across new basement, ground and rooftop floor parking.
The SDAU has recommended the WAPC approve Scentre Group's shopping centre expansion application at its meeting next week.
