The GPT Group has been given the green light to begin work on its West Keira development project before the end of the year.
The work will be done on behalf of the owner of the Wollongong centre, the GPT wholesale shopping centre fund (GWSCF), who is investing a further $200 million in the development.
Matthew Faddy, fund manager for GWSCF, said the development of the Fund’s West Keira land holding will deliver new experiences to the region.
“The 18,000 sqm West Keira extension of Wollongong Central responds directly to the needs of this community by addressing a significant undersupply of food retail in Wollongong’s city centre,” he said.
“Fresh, fast and slow food will feature in an offer that spans all three levels of the project, capitalising on the strength that the food commodity group continues to show. An additional 80 specialty stores and 600 plus car spaces will round out the offer.”
The large investment will come alongside with the Fund’s $30 million refurbishment of Wollongong Central’s north building in 2009, which has since boosted traffic and sales.
“Giving the green light to this significant investment, along with the Fund’s $30 million refurbishment of Wollongong Central’s north building in 2009, signals investor confidence in the Wollongong CBD market. We are delighted to be making a start to the project before the year is out,” Faddy said.
The West Keira extension of Wollongong Central is estimated to deliver a year one yield on incremental capital of 7 per cent.
The project is expected to take two years to complete and early works will commence before the end of 2011, with major works to start in the New Year.