APP: Westfield Marion Expansion | $350m

[pushbutton]

Glad to hear that, but somehow it wasn't quite the Westfield Marion expansion update I was hoping for!

[jimmy_2486]

Yes sorry about that.... but maybe this might spark some more talk about it!!!

[pushbutton]

I have it on very good authority (sorry can't name my source) that the Marion expansion / upgrade has been put on hold until at least 2009, possibly 2010.

This is because Westfield have decided to give higher priority to expanding their West Lakes and Tea Tree Plaza centres.

The latest I have heard is that work will start at TTP in May 2008, with West Lakes to be expanded in mid-late 2009, and Marion works to commence sometime in 2010.

Sorry to disappoint those who were hoping for something to happen sooner at Marion, but that's what I have been told, as I said this comes from a very very reliable source (although of course Westfield could still change their plans again and it does also depend on the respective councils and the government approving all the plans).

[Cruise]

They're going to upgrade west lakes again so soon?

[AtD]

Cruise: viewtopic.php?f=8&t=1278

It'd be interesting to see how the trouble with Centro plays out for Westfield. On one hand, one of their competitors is in trouble and they have a chance to snap up some cheap property. On the other, the markets might be a little more weary of investing with Westfield, because Centro was such a strong, safe company.

[Cruise]

Hmmm, Im not sure if Westfield would be interested in Arndale (seeing as they sold it), maybe Colanades though, which would give some more strength to what pushbutton is saying about delaying marion upgrades.

[pushbutton]

They're going to upgrade west lakes again so soon?

Yes. Please see the thread on this if you would like more info

[pushbutton]

Hmmm, Im not sure if Westfield would be interested in Arndale (seeing as they sold it), maybe Colanades though, which would give some more strength to what pushbutton is saying about delaying marion upgrades.

I would imagine (although I haven't so far heard any evidence) that Westfield would likely be very very VERY interested in aquiring Colonnades. If you think about the distribution of Westfield centre around Adelaide, this is a very suitable location for them to expand their network.

In terms of the standard of the centre, it is definately already up to Westfields desired standards in just about every obvious way I can think of (Centro have done all the work to get it to that standard). As far as I can tell all Westfield need do is change the signage. That's it.

Also whilst Colonnades has just been upgraded and expanded, and there probably isn't really quite enough demand to further expand it just yet, there is strong potential for such demand to exist in the not too distant future (given all the new housing being built from Morhet Vale down to Seaford and beyond. Also there is still a massive amount of vacant land surrounding Colonnades that could be used easily for future expansion.

Personally I would be very surprised if Westfield don't at least make a serious offer for it.

[pushbutton]

Further to my previous post, I'm thinking also that maybe if Westfield did get Colonnades, they might have second thoughts about doing such a big expansion of Marion.

They might decide they'd be better off just upgrading Marion and maybe doing a smaller scale expansion, and planning for a further expansion of Colonnades with the money they save at Marion. Colonnades certainly hass a whole lot more land to expand into than Marion does, and would not require ugly muti-storey carparks!

Of course it also depends on the surrounding population and demographics etc, but I'm just saying it could be a possibility that might make sense for Westfield (and the shopping public!)

[muzzamo]

Westfield have a history of creating massive, mega malls. Have you ever been to Parramatta or Bondi Junction? Then you will see what I mean

As for colonnades yeah i could see them acquiring and then I could see them applying their own style to it, particularly in terms of entertainment precincts etc because it is a bit lacking in that department.

They would also "clean it up" even more, hiring those massive bouncer-style security guards that they have at all the other malls and subsequently working hard to keep all the rif raf out of the mall and in collonades tavern playing pokies where they belong...

[pushbutton]

Well of course there is cinemas, a pub, basketball, netball, soccer, an ice-skating risk, volleyball, a gym, a theatre, 10-pin bowling, a spa and swimming at Colonnades, it's just that they're not actually INSIDE the mall, but just next to it outside. I suppose there is a slight possibility of relocating some or all of these facilities into the mall in the very long term, but it would be extremely expensive and probably not cost effective, in my opinion.

There is already a solarium and a Tunza Fun amusement arcade with crazy golf course within Centro too. So I wouldn't agree that it's lacking in entertainment facilities.

[muzzamo]

... except as you said none of those are owned by westfield. They have no problems with coming in, opening their own (a cinema?) and decimating the competetion.

But my other point is that the trend in Australia (just like the US) is to make everything bigger. Westfield push the mega-mall concept, and we go to Marion because we have more "choice" but the truth is we buy most of our stuff from the same chain stores that are in every mall

[pushbutton]

Yes fair comment. Westfield do like everything to be big!

[Dave_The_Planner]

I just hope the expansion continues and more jobs are created for the youth. Car-parking will have to be seriously looked at for this complex.

[Ben]

Sounds like the extension is still going ahead in 2009. David Jones have just announced (yesterday) they have renewed their lease for 25 years subject to an completly refurbished store.

Press Release from David Jones (DJS:ASX)

NEW STRATEGIC REFURBISHMENTS

The Property Agreement also sets out the terms and conditions for the lease renewal and
refurbishment of existing David Jones department stores in shopping centres at:

Kotara (NSW);

Marion (SA); and

Karrinyup (WA).

Each of these stores are high value stores with the opportunity to increase space for high margin
categories and to leverage the improving wealth demographics of the surrounding catchment areas.
The refurbishment of these stores will enable David Jones to reinforce its “Home of Brands” positioning
and enhance its customer shopping experience. The focus of each refurbishment will be to
strategically differentiate these David Jones stores through improved high margin categories and brand
mix.

2. Marion (SA)
The Marion Centre is the 7th largest shopping centre in Australia and is the only major centre servicing
the South Adelaide catchment. It trades in excess of $700 million in MAT per annum and is the most
significant shopping centre in South Australia.
Westfield is currently in the planning stages for a redevelopment of the Marion Centre. Pursuant to the
terms of the Property Agreement, David Jones has been granted a 25 year lease to trade in a
completely refurbished store.

For the full release:

http://imagesignal.comsec.com.au/asxdat ... 906501.pdf