John Gandel and Vicinity Centres are set to expand and renovate Chadstone – the Fashion Capital, again.
The proposal is worth $685 million.
It will include a nine-storey office estimated to be valued at $130m upon completion (artist’s impression, top).
Earmarked for a site off Middle Road, it will be 20,000 square metres and A-grade.
The landlords will also add about 1400 car park bays in two new zones: Car Park D and C (the latter sometimes called the Coles car park).
At the opposite side of the complex, it will also modify Car Park A (David Jones car park).
These works are valued at $97 million.
No new retail
The owners don’t plan adding lettable retail space to the existing 215,574 sqm mixed use complex – Australia’s biggest shopping centre by area (and for a short period until 2009, the Southern Hemisphere’s).
But they will expand its dining terrace and leisure precinct by 4000 sqm, at a cost of $53 million.
The fourth component of the newly announced refurbishment is a renovation of the fresh food precinct, with a focus on wellness.
Specifically, this includes:
- Modernising 3800 sqm of retail area;
- Updating 1400 sqm of café and restaurant space;
- Creating 5300 sqm of area specific for health/hospital services;
- Adding a 2900 sqm childcare centre, 1000 sqm education precinct and 2400 sqm co-working office.
Mr Gandel and Vicinity are pricing this component at $340m (which is more than 2.5 times the value of the 20,000 sqm office).
The fifth investment – worth $37m – will renew 2950 sqm of space for high-end occupiers.
The redevelopment was mooted in 2017.
City of Stonington received an application this week (story continues below).
If approved, construction could begin in 2021 and end four years later.
Chadstone’s recent history
In 2017, Mr Gandel relocated his private company’s headquarters from an office atop of David Jones’ Chadstone store.
Shortly after, serviced office operator Waterman Group would take that space over.
In 2011, Vicinity and Mr Gandel announced a $500m redevelopment at the centre including new retail area, offices and a 12-level hotel – the latter which opened last month.
JB Hi Fi set up its headquarters in Tower 2 (but earlier this year relocated to Southbank).
In 2008, the $140m Chadstone Place retail wing was completed.
Like many major shopping centres, it is a public transport hub.
Chadstone – the Fashion Capital, as it is officially known, offers non-retail amenity to the community too including healthcare and childcare.
Longer term, it is speculated apartments will rise on the site, in keeping with a trend of these investments becoming mixed-used communities in Melbourne.
Landlord launches 10-week public consultation period
Chadstone director, Fiona Mackenzie, said that as part of the planning process, a 10-week consultation with informal sessions, will 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,” Ms the executive said of the proposal.
“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 added.