LaSalle Investment Management (“LaSalle”) announced today that it will commence the redevelopment of Nerang Mall shopping centre in the Gold Coast in southeast Queensland. LaSalle purchased the property in early 2012.
Tenants at the mall, which comprises total lettable area of 8,750 square metres, include Woolworths Supermarket, Crazy Clark’s Discount Variety Stores, Terry White Pharmacy as well as fashion and specialty stores. Woolworths recently signed a new lease for a further 20 years for 4.606 square metres and plans to undertake a complete store refurbishment over the next six months while continuing to trade.
LaSalle will invest A$14.5 million on the Nerang Mall redevelopment work, which will include widening and refurbishing the common area, introducing a second travelator between the lower car park and the shopping mall, refurbishing the public amenities and refreshing the tenant mix of specialty stores. Redevelopment work will start soon after Easter and is scheduled to complete by November.
LaSalle Fund Manager Simone Dalley said, “The redevelopment of Nerang Mall is a long-term investment and part of LaSalle’s strategy of acquiring and repositioning assets in order to maximize the returns of the property.”
Separately, LaSalle will soon complete the first stage of the refurbishment of Kippa-Ring Shopping Centre in northeast Brisbane. The redevelopment will expand the size of the mall by 25% as well as add on modern amenities and quality fit-outs.
“We remain optimistic about the growth in suburban malls which offer stable income yields and are more resilient to the growth in online spending,” Dalley added.
LaSalle has been investing in Australia since 2006 and currently has approximately 40 employees spread across Sydney, Brisbane and Melbourne. It offers a full service model with a wide spectrum of capabilities, including acquisitions, funds management, asset management, development, property management, leasing and research. LaSalle manages about US$1.5 billion of assets in Australia.