MEDIA RELEASE FROM CARINDALE PROPERTY TRUST (ASX:CDP) – 8th September 2010
The Carindale Property Trust (ASX:CDP) announced today that works would start on a major redevelopment at Westfield Carindale in late 2010. Westfield Carindale is jointly owned by Carindale Property Trust and the Lend Lease-managed Australian Prime Property Fund Retail.
Westfield Carindale is one of Brisbane’s largest regional shopping centres at 114, 930 square metres of gross lettable area and is one of the city’s premier retail destinations, anchored by two department stores, two discount department stores, three supermarkets, an eight-screen cinema and approximately 290 specialty retailers.
The approximately $300 million project will include a new parallel mall over two levels anchored by a new full-line Coles supermarket, a relocated larger format Target store and around 120 new tenancies adding a further 22,000 square metres of gross lettable area to the existing centre. The finished project will have an increased focus on fashion and will feature a range of Australian and international designers, reinforcing Westfield Carindale’s position as one of Brisbane’s key fashion destinations. An additional feature of the development is a new dining precinct that will sit adjacent to an outdoor mall.
The project also includes a new relocated library facility that will be operated by Brisbane City Council, a new kids’ precinct, and an improved car park management system that features a parking guidance system. Westfield Australia and New Zealand Managing Director Robert Jordan said: “Westfield Carindale is an asset that continues to be a major drawcard for shoppers and retailers, and we believe conditions are now appropriate for the project to start.”
“The redeveloped centre will provide Brisbane with a superior retail facility, combining the very best in shopping, entertainment and leisure.” Enabling works will start in late 2010 and the main project is scheduled to start at the beginning of 2011, with completion expected in late 2012. Carindale Property Trust’s share of the project cost is approximately $150 million with a
forecast yield in the range of 7.0% – 7.50%. Carindale Property Trust has refinanced its existing $55 million facility with a new $230 million five-year secured facility with Credit Agricole and Sumitomo Mitsui Banking Corporation, the proceeds of which will be used by the Trust to fund its share of the redevelopment.
Carindale Property Trust expects to maintain the annual distribution at the current level of 27.80 cents per unit for the duration of the development.