Listed property group Stockland has filed a development approval to construct a $23 million shopping centre in Baldivis with the intention of increasing its retail presence in Western Australia.
Listed property group Stockland has filed a development approval to construct a $23 million shopping centre in Baldivis with the intention of increasing its retail presence in Western Australia.
Stockland’s shopping centre portfolio is valued at more than $3 billion and includes 40 retail properties nationally. Just 5.4 per cent of assets are in WA, including Stockland Bull Creek, which is valued at $62.9 million in Stockland’s annual report.
Stockland also has a 25 per cent interest in the $100 million Karrinyup Shopping Centre.
Stockland general manager retail development, Tim Atkins, told WA Business News the group was very focused on growing its retail presence in WA and that, on completion of stage one of the Baldivis development, Stockland would have more than $180 million invested in retail in the state.
“We see excellent potential in Western Australia for all Stockland business activities due to the positive economic drivers,” Mr Atkins said.
Stockland is developing the Baldivis Town Centre (which includes the shopping centre) on 27.8 hectares of land acquired with Stockland’s purchase of Taylor Woodrow in 2001. This acquisition also included the $226 million Settlers Hills residential development, which is expected to be home to 6,000 residents in more than 2,100 residences.
Mr Atkins said The Baldivis Town Centre would become the largest district level node of activity in the Rockingham area, second only to Rockingham.
“In 1997, the City of Rockingham prepared an indicative development plan for the Baldivis town centre along ‘main street’ principles with a strong emphasis upon street activation,” he said. “Mixed uses are proposed, including residential, business and retail, commercial and community uses.”
There had been strong support for the development of the town centre from both the local community and the City of Rockingham, Mr Atkins said.
The proposed shopping centre includes a full-line supermarket and 24 specialty shops, with a total gross lettable area of approximately 6,800 square metres.
Not only is the shopping centre strategically located for Stockland’s residential assets, Baldivis is forecast by the Western Australian Planning Commission as the suburb where the most lots will be released during the next five years (4,985 lots to be released), positioning the shopping centre in a prime growth area.
Stockland is not the only developer interested in the area, with listed companies Australand, Peet and Co, and Cedar Woods all developing major residential projects in Baldivis.
As all sectors of WA’s property market continue to perform well, particularly in comparison to other states, the big four listed property groups – Stockland, Australand, Mirvac and Multiplex – are considering expanding their WA portfolios.
The big four listed property groups all have a presence in the WA market, but it is mainly through their development arms, while their trusts are heavily weighted to the east coast.
Mirvac this year acquired the Kwinana Hub Shopping Centre as the first WA asset into its commercial investment portfolio, valued at more than $3 billion, and has been actively looking at other WA assets.
At the time, Mirvac’s director of property acquisition and agency services, Andrew Butler, told WA Business News that given the climate of the sector, Mirvac was interested in expanding its interest in the WA commercial market.
