Chadstone to get $685m facelift

Chadstone to get $685m facelift

6 December 2019

Vicinity Centres has today revealed plans for five key projects, totalling $685 million, to continue the evolution of Chadstone, with the community invited to provide feedback on the proposed developments.

Development applications have been lodged with the City of Stonnington for more than 1,400 additional car spaces, a new nine-storey commercial office building, expansion of the current dining terrace and leisure precinct and an upgraded fresh food precinct, with a focus on workplace, wellness and lifestyle retailers. The additional car spaces will give Chadstone the largest free car park in the country.

Meeting changing consumer lifestyle needs and addressing future employment trends is at the heart of the proposal which aligns to Vicinity’s mixed-use and market-leading destination strategy. The projects won’t increase the size of the precinct but rather refresh and repurpose existing space, utilising land within the current Chadstone footprint.

Vicinity’s Chief Development Officer, Carolyn Viney, said: “We’re excited to be able to share with our neighbours and the broader community our vision and proposed plans for the future of Chadstone, further enhancing its status as one of the world’s leading integrated lifestyle destinations, with more than 24 million visitors a year.

“We know Chadstone plays a significant role within the growing Monash economic region supporting ongoing and future employment. Our plans will address demand from commercial tenants wanting to be based at Chadstone and continue to deliver the experiences our customers and retailers have come to expect from The Fashion Capital.”

Ms Viney said with Victoria’s population expected to add another one million people by 2026, places like Chadstone are well-placed to accommodate the city’s expansion without disrupting the liveability of Melbourne’s suburbs.

“Our destination centres, such as Chadstone, are community hubs bringing together the key elements that create the vibrant neighbourhood feel we all crave. We’re combining world class, experience-led retailing, convenient services, office space and accommodation, all enabled by robust public transport connections,” Ms Viney said.

“We anticipate these projects will create more than 250 roles during the first year of construction and more than 1500 new full-time jobs at Chadstone once completed,” Ms Viney said.

The DAs are subject to the usual approval process by the City of Stonnington and the projects require approval by Chadstone’s co-owners. If approved, it’s anticipated work could begin in 2021, with completion within four years.

Chadstone Director, Fiona Mackenzie has invited the Chadstone community to be part of the planning process during 10 weeks of consultation, with information sessions to be held in December, January and February.

“Our customers and community have told us they want more dining and entertainment at Chadstone so our plans include an extended dining precinct and additional fresh food to match their lifestyle needs. We’re also working to improve accessibility with more than 1,400 additional car spaces – making Chadstone’s the largest, free car park in Australia.

“Transport remains a critical consideration for our customers, retailers and the broader Chadstone workforce and we think these projects, coupled with government investment in exploring the feasibility of light rail, will enhance the liveability and economic value of our region,” Ms Mackenzie said.

Chadstone’s director, Fiona Mackenzie, said foot traffic at the mall had increased by 24 per cent at last week’s Black Friday sales.

“In this next phase of our development we anticipate not just delivering experiences but services to the community that uses Chadstone every day,” she said.

“We have a significant worker population that are seeking services beyond simply retail.”

Chadstone generates $2bn in annual sales, ranking Chadstone as the No.4 shopping centre in the world, by sales, with 24 million people visiting each year.

In November, the $130m five-star Hotel Chadstone opened, with the building operated under the MGallery by Sofitel brand.

In Sydney, Vicinity Centres and GIC have a $1bn plan to overhaul their jointly owned Chatswood Chase shopping centre, while in Brisbane Vicinity Centres has also been divesting non core assets. In November, it sold its 25 per cent stake in the Mt Ommaney Centre, 14km south west of the Brisbane CBD, for $94.5m at a 3.3 per cent premium to book value.

The company will run a 10-week community consultation process for feedback on the changes in December, January and February.