Retail landlord Stockland has announced plans for a $500 million state-of-the-art technology hub at Macquarie Park in Sydney, today lodging plans to develop the first stage of the renewed innovation precinct.
The application to develop stage one of the development, which is subject to detailed design and planning approvals, proposes 16,500 square metres of office, retail, learning and co-working space across 10 storeys, with typical floor plates of around 1,750 square metres.
“The building will eventually form part of a 55,000 square metre masterplanned, campus-style precinct to cater to workers of the future, with five new mixed use buildings featuring A-grade office and learning spaces, indoor and outdoor breakout spaces, and co-working areas overlooking a central green space and world-class conference facilities,” said Mark Steinert, Stockland managing director and CEO.
“The value of our Logistics and Business Parks business has risen around $600 million over the past four years, from $1.5 billion to $2.1 billion and this development is an important part of our strategy to grow the portfolio to upwards of 20 per cent of our total assets.”
Located around a central green park flanked by quality cafes, restaurants, services and convenience retail on the ground floor of each building, the precinct will also feature a gym and bike storage, end of trip facilities, as well as childcare and medical services on completion.
“Our design responds to major transport, education and health infrastructure investment currently underway across Macquarie Park, a growing precinct that already generates over $9 billion for the Australian economy each year,” said John Schroder, Stockland Group Executive and CEO, Commercial Property.
Stockland also announced a positive first-half trading update, with funds from operations (FFO) up 18.2 per cent on the corresponding 1H17 period to $436 million, and an increase in FFO per security of 16.9 per cent on 1H17.
“We delivered comparable FFO growth of 2.7 per cent and maintained high occupancy across our retail town centres in 1H18,” said Steinert.
Following a “flat start” to the half, retail sales growth for the second quarter of 1H18 improved to 2 per cent.
Stockland said there was growth in lifestyle and entertainment tenancies, with comparable moving annual turnover (MAT) growth of 10 per cent in retail services and 2.8 per cent in casual dining and food catering over the half.
The property firm is also looking to sell “non-core assets” and during this quarter will place Stockland Highlands on the market, with plans tp divest $300 million of retail town centres over the next 12 to 18 months.
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