Shopping Centre News No. 3, 2020 | Investment Review and Retail Transactions | In the Pipeline Devel by shoppingcentrenews

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Y R T S U D N I T

FY20 INVESTMENT REVIEW & RETAIL TRANSACTIONS PROFILE: MOVERS & SHAKERS

IN THE PIPELINE

COVID-19 hasnâ&#x20AC;&#x2122;t stopped us!

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VOLUME 38, NUMBER 3, 2020

CENTRE INVESTMENT VALUE OF COMMUNITY 32 THE 20 SHOPPING MARKET REVIEW The team at Marrickville Metro Transaction volumes across FY20 were vastly different in H2 2019 and H1 2020

MOVERS & SHAKERS We profile four of the industry's top people in retail property development

CONTENTS

approach their job as more than just running a shopping centre

DIVERSITY AND INCLUSION Insights into how retail businesses can become more inclusive

2 From the publisher 4

Industry Review

10 Research: Retail spending bouncing back, but leasing challenges to remain 12 Research: After COVID-19 – The long haul back – Part 3 16 Comment: SME retailer rental assistance 20 FEATURE: Shopping centre investment – market review 24 FEATURE: Retail property sales report – transactions over $20m 30 Comment: Double dipping 32 Marketing: The value of community 36 Marketing: Next generation marketing 40 FEATURE: In the Pipeline 52 PROFILE: Movers & Shakers 60 Design: Will public space replace the mall? 66 Design: What impact is COVID-19 going to have on retail? 68 Food: Maximising the next normal for food and hospitality 72 Trends: Diversity and inclusion in retail 76 Industry Shuffles 78 Hiring strategies: Time to think outside the square? COPYRIGHT©

40 IN THE PIPELINE As a result of the COVID-19 crisis, many developments and redevelopments of shopping centres have been put on hold – but you wouldn’t think so with a list as long as the one below! The projects featured span the country; from Perth to Sydney and from Adelaide to Townsville. It’s a development pipeline that runs into the billions. 80 Collins, VIC Armstrong Creek Town Centre, VIC Bay Central, NSW Bayfair Shopping Centre, NZ Caddens Corner, NSW Castle Towers, NSW Chadstone, VIC City Lane City Arcade, QLD Como on the Parade, SA Distillery Road Market, QLD Eastlakes, NSW Eastland, VIC Ed Square, NSW Grand Central, QLD Home HQ, NSW Huntlee Shopping Centre, NSW Hyperdome, QLD Karrinyup Shopping Centre, WA Marrickville Metro, NSW Merrifield City, VIC MLC Centre, NSW Port Adelaide Plaza, SA Quay Quarter Lanes, NSW Ripley Town Centre, QLD Southgate, VIC Strathpine Centre, QLD The Walk, Bourke St Mall, VIC Waterfront Brisbane, QLD Watergardens, VIC West Gosford Village, NSW Westfield Doncaster, VIC Yamanto Central, QLD SHOPPING CENTRE NEWS 1

from the publisher T he question for us is whether or not the present shopping centre can truly become ‘the town centre with a roof over it’. The fact that nowadays, significant components of our centres are open air, is irrelevant; the statement is metaphorical.

ost of us are familiar with the ancient Chinese phrase: “May you live in interesting times”. What is generally unknown (even in the East), is that rather than an expression of goodwill, the salutation was actually a curse. In ancient China, ‘order’ was the paramount requisite. The Emperor had a supreme position; absolute, god-like, unequivocally unchallenged. The second tier had no authority; they were simply responsible for the execution of the Emperor’s dictates. Everyone knew their place, right from the top, down to the lowliest peasant in the field; and each role was minutely defined, meticulously adhered to and conducted scrupulously. That was ‘order’. It was constant, uninspiring, banal and even boring. When times became ‘interesting’, change was considered; challenge to the establishment was voiced, fortunes were about to change, revolution or war was in the air and heads were about to roll; nothing would be the same again!

Today, we live in interesting times. Our industry is in turmoil. Rents have been savaged to levels undreamed of a mere eight-months ago. Our cash flows have been reduced and many of the retailers in our centres will never trade again. Many lease agreements will be broken and, in some cases, we will not enforce defaulters’ contractual obligations. Interesting times.

So, what’s the future? Commentaries on the state of things at present, statistics on the number of unemployed, debt levels, fiscal incentives and so on, are all interesting but don’t provide solutions. How will our industry and our product – the shopping centre – emerge from all this and how will they change, adapt and transform themselves so they are as profitable as they always have been? For this scribe, the answer is ‘local’. COVID-19 is a major change element. Things have changed and after the pandemic, the emergency, is over, we will live different lives. Gone are the days of mass travel; we will no longer see massive aeroplanes crammed with people in economy, with groups of 20, 50, even a 100 or more, spewing out of airports into waiting buses transporting them to 3-star hotels where they check-in ‘en-masse’, sprint to their rooms and congregate for dinner 30 minutes later. The following day, they board coaches, tour five countries in ten days and then head home – all for $2,999! Those days are gone. International travel will return again, but it will be less hazardous, significantly less frequent and more expensive. Local tourism will experience growth, however. As Generation Z emerges as the major spending sector, demand will change. Sustainability, quality, non-exploitation of workers, will take over from disposable,

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cheap, imported product. Local production will also experience welcome growth. We often used to say that the shopping centre was ‘the town centre with a roof over it’; and in the early days, the description was fairly accurate. In those days, the critics claimed that the centres destroyed the main streets, the retail strips that housed the mum and dad retailers, the local merchants, the ‘community’ shops. In those early days, that criticism certainly held some truth. But as the centres focused on the chain operators, the volume retailers, the discounters, the retail strips came back. Why? Because people appreciated the quaintness, the individuality, even the eccentricity of the ‘one-off’ retailers. So, the ‘strips’ and the centres have always been in competition; you trade on the street, or in the centre; the exceptions prove the rule. The question for us is whether or not the present shopping centre can truly become ‘the town centre with a roof over it’. The fact that nowadays, significant components of our centres are open air, is irrelevant; the statement is metaphorical. If we are to truly become town centres, then the mindset of a retailer being a shopping centre operator, or one on the strip, has to change. This is going to involve ‘creative leasing’; a subject dealt with in this column two issues ago (Big Guns 2020),

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2 SCN

and it goes further. As more and more restrictions on retailing, distancing, infection prevention, become the norm, then shopping centres are opportunistically placed to assist retail operators – especially the ‘one-offs’. Take, for example, a large space – a Target – that closes down. How about a ‘Health and Beauty/ Lifestyle’ precinct. It’s comprised of two local hairdressers, a nail boutique, facial salon, a yoga studio, masseur, teeth whitener, nutritionist, small gym, et al. Not every usage is physically delineated; some interact. As you enter, you’re given a ‘charge card’ and on the way out you settle your account. It’s run by centre management; the spaces are licenced on a one, two or three-year basis. Fit-out costs (for the licensee) are minimal as the overall space is already finished. Rentals are set as a percentage of gross turnover; the centre therefore has a significant risk but also, a significant upside if it’s a success.

In a time of change, we need to look at ourselves differently; perhaps we’ve got to invest in retail a bit more, take some risks and get more involved in the ‘local retail’. Paradoxically, there’s a massive example of it already – but that’s where the paradox lies; it’s in reverse! In literally thousands of shopping centres across China, retailers have become landlords! As Chinese developers focused on prestige, luxury, imageconscious retail, building huge, lavishly appointed architectural icons, they gave the major retailers, Walmart for example, anything they wanted, in order to secure an anchor. Yes, the majors elected for low rents, and fixed terms, but their priority was to lease double or triple the space they needed. After fitting out and delineating their own store, they then subdivided the remaining space and leased it to local retailers. Informed opinion in certain circles in China is that Walmart makes more money out of leasing specialty shops than it does as a retailer! Is significant change impossible? Are we too fixed in our structure to change dramatically? Can we begin to take some real risk? Will our owners come on board? If this column provokes a bit of thought – even disagreement – it’s done its job! Michael Lloyd, SCN COPYRIGHT©

Partner with SCN and reach the industry’s decision makers During the COVID-19 crisis, SCN has been broadcasting news on a daily basis and delivering information impacting our industry during this difficult time. As a result, we have seen our digital audience grow and become even more engaged over this time. More than ever, SCN remains connected to the industry through its digital platforms: website, weekly e-newsletter, LinkedIn and other social media channels. As a result, we have created affordable advertising packages that shares SCN’s digital platforms so that relevant organisations can provide important information and services to our industry right now. Partnered content digital packages start from $500. Contact us today: editorial@shoppingcentrenews.com.au

Next issue Mini Guns – book now!

SHOPPING CENTRE NEWS 3

Industry REVIEW Kmart opens its doors at new-look Ellenbrook Central In Perth’s growing north east, the ribbon has been cut to celebrate the opening of the first stage of Ellenbrook Central’s $63 million expansion with a brand-new Kmart. The expansion was officially opened by State Member for Swan Hills Jessica Shaw MLA and City of Swan Mayor Kevin Bailey. On completion Ellenbrook Central will offer more than 120 retailers including some of Australia’s most wellknown brands including ALDI, Best & Less, Big W, Coles and Woolworths...

Auckland precinct Commercial Bay officially opens doors Auckland’s most exciting new retail and hospitality precinct, Commercial Bay, officially opened its doors to the public on Thursday 11 June. Owner Precinct Properties’ CEO Scott Pritchard; Rt Hon, Jacinda Ardern, Prime Minister 4 SCN

Here's a preview of SCN’s recent online Industry News... Don’t miss out on what’s happening in our dynamic shopping centre industry. SCN's popular e-newsletter features development news, centre openings, transactions, marketing initiatives, people profiles and more... To receive the e-newsletter go to our website and sign up – it's free! shoppingcentrenews.com.au

Western Sydney’s newest shopping destination – ECQ opens to the community On Wednesday 10 June, after a pandemic-related false start, Eastern Creek Quarter (ECQ) opens to the community. Frasers Property Australia’s new super-neighbourhood centre is anchored by a full-line 3,800m2 Woolworths supermarket and houses a mix of local concepts,

quality brands and the unique ECQ Social revolving retail precinct. Reflecting its high-profile Western Sydney Parklands location, ECQ is a global leader in environmental sustainability...

UNIQLO opens first store for 2020 at Perth’s Karrinyup Japanese global apparel retailer UNIQLO opened its doors at Perth’s Karrinyup Shopping Centre with an official ribbon cutting ceremony and Japanese drumming celebration to signify the event on 2 July. The opening marks UNIQLO’s third Perth store and their first store opening in Australia for 2020. The new store boasts 942m2 of retail space and is located in Karrinyup's new Fashion Loop...

SHOPPING CENTRE NEWS 5

Industry REVIEW Vicinity and Challenger reveal 2050 Bankstown vision Vicinity Centres and Challenger have unveiled their vision to transform 11.4 hectares in the centre of Bankstown in Sydney’s growing south west into a vibrant mixed-use urban neighbourhood to work, live, stay, dine and shop.

The long-term vision for Bankstown could see up to 8,400 workers, 3,500 residents and 1,800 students onsite when the final stage of the development is completed in 2050...

Home Co. acquires three properties from Woolworths and announces $190 million equity raising HomeCo progresses its growth strategy and announces its acquisition of three Woolworths anchored convenience-based neighbourhood centres from Woolworths Group for $127.8 million and confirms its acquisition of Aurrum Erina residential aged care property for $32.59 million on a sale and lease back... 6 SCN

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A vibrant community space in the heart of Lane Cove village opens The Canopy – Lane Cove’s premier dining, food and beverage destination has officially opened to the public, offering a unique environment for the community and retailers to converge within a purpose built facility that provides convenience and atmosphere for day and night

trading and activities. The Lane Cove Council funded project has completely transformed the previous 170 surface-level car park into a vibrant community space in the heart of Lane Cove village...

Mirvac Retail prioritises customer safety by launching COVID traffic tracker Mirvac Retail has announced another new innovation to help its shopping centre customers navigate busy periods and time manage their physical trip to the shops via the centre website and a new tracking tool. The traffic tracker application, now available on each of the portfolio’s 16 centres’ websites, has been partly in response the COVID-19 concerns about heavy crowd periods at centres, but also a continuation of the constant review and response to shopper needs and a focus on customer pain points... COPYRIGHT©

SHOPPING CENTRE NEWS 7

Industry REVIEW QICGRE announces target of 2028 for Net Zero Emissions QIC Global Real Estate (QICGRE) has announced a commitment to achieving Net Zero Carbon Emissions for its core Australian retail assets by 2028, a target that makes it the first Australian signatory to the World Green Building Council’s Net Zero Carbon Buildings Commitment for a retail portfolio. The plan involves delivery of a range of carbon-reducing initiatives for assets in QICGRE’s two largest retail funds...

Woolworths opens three new community centres Throughout June, the Woolworths Group property development team successfully launched Stage One of three neighbourhood shopping centres in Victoria and New South Wales, bringing to their local communities a new shopping experience. Due to the impacts of COVID-19, the opening of Greenvale Lakes Shopping Centre and Cranbourne West Shopping Centre in Melbourne along with Cameron Park Plaza in Newcastle were restructured to staged openings...

Sydney’s first KitKat Chocolatory opens at Mid City Sydneysiders can now have a break like never before, as KitKat launches KitKat Chocolatory at Mid City Sydney. The new flagship store offers a range of personalised, premium chocolate experiences. The first permanent KitKat Chocolatory outside of Japan opened in October 2016 at GPT’s Melbourne Central. Nestlé General Manager Confectionery Chris O’Donnell said that the KitKat Chocolatory at Mid City Sydney would build on the success of the Melbourne boutique...

Next issue: MINI GUNS 2020

Centres with a GLA from 6,000m2 to 20,000m2 Survey deadline: 20 August shoppingcentrenews.com.au 8 SCN

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RESEARCH It’s tough out there! Businesses doing better during these COVID-19 times are exceptions that prove the rule. It’s tough for suppliers, retailers and shopping centre owners/managers. Vacancy rates are rising across all retail sectors, but neighbourhood and Large Format Retail are proving more resilient.

Retail spending bouncing back, but leasing challenges to remain

LL’s 2Q 2020 statistics show vacancy within shopping centres has risen, despite the re-opening of retail and rebound in foot traffic. The national average shopping centre vacancy rate increased to 5.1% in June 2020 from 3.8% in December 2019, to the highest level in more than 20 years. Including CBD retail and Large Format Retail, the vacancy rate increased from 4.8% to 6.3%. Our research did not count temporary store closures as ‘vacant’ for the purpose of this survey. We’ve seen a rebound in sales and foot traffic at the lowest in April across our managed portfolio of approximately 300 centres, but approximately 5-10% of stores remain temporarily closed across the industry. There is a major operational focus for us on ensuring shopping centres are safe places as social restrictions have lifted in most states. Our team is also working closely with individual retailers on their rental circumstances to help them through this period with a specific focus on applying the principles under the commercial tenancies Code of Conduct. While the National Code of Conduct for commercial tenancies is providing some structure to tenant-landlord rent relief negotiations for SMEs, the focus for some national retail chains is shifting to more permanent decisions for rationalising their store numbers. Government stimulus has generally been supportive of business continuity, employment and households, which partly contributed to the rebound in retail sales in May of approximately 16.9% from the low in April (-17.7%). We remain cautious about the outlook for discretionary retail as stimulus 10 SCN

measures roll off later in the year, which is likely to contribute to an upward trend in vacancy rates. The events throughout the past few months, which have led to many discretionary retailers planning to shrink their store network, will likely polarise the retail property sector even more. This is likely to drive divergence even further between the performance of prime and secondary quality shopping

ANDREW QUILLFELDT Senior Director of Retail Research JLL

TONY DOHERTY Head of Retail, Property & Asset Management JLL

Retail vacancy rates Source: JLL Research

centres – a trend that has been occurring for some time already. The latest figures showed that the commencement of new projects and extensions were the lowest since 2009 at just 22,900m2 in 2Q 2020, as owners scale back capex programs. Each of the six projects that went ahead in the June quarter were all convenience-based centres anchored by a supermarket. Neighbourhood and Large Format Retail centres have been much more resilient, from a foot traffic, sales and rent collection perspective as these sectors have benefited from the boost in sales of food and household goods.

Development activity is reducing significantly given the focus on converting existing space. The lower levels of new supply will help rebalance market conditions during the next three to five years. The handing back of space both at a speciality level along with the downsizing of department stores and discount department stores is one of the biggest challenges for owners now. We’re expecting to see an acceleration of the alternate-use conversion theme as owners look to extract value from retail assets, whether it’s a partial or full conversion. SCN

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RESEARCH Mobile device data is providing a powerful and insightful tool to measure the changes in shopper visitation patterns, almost in real-time – it's fascinating stuff. The following charts show how our centres are performing in relation to visitation levels. The information given shows centre activity from the period prior to COVID-19, during the early stages, through to lockdown and then the easing of restrictions. It has tracked visitation levels right up to 27 June.

After COVID-19

The long haul back Part 3 Chart 1: Daily unique visitors index: all centre types, long term TONY DIMASI Head of GapMaps Advisory

t the time of writing, it is now about six weeks since the first steps were taken by NSW in the easing of COVID-19 restrictions and about five weeks since the more significant easing across most other states occurred. Unfortunately, the re-emergence of high levels of infection in Victoria over recent weeks – after the state had recorded a number of days of very few or even zero new infections – is an unwanted bump in the road to recovery for shopping centres in that state. It is still early days to be making definitive pronouncements about the likely date of return to 'normal' for shopping centres or to be able to say with confidence exactly what the new normal will look like. There is, however, an increasingly wide array of information available to help us understand where we are on the path back to recovery and one conclusion that can be drawn with some confidence, I believe, is that much of the ground lost by shopping centres during the lockdown period has already been recovered. Personal mobility data collected via smartphone usage, often referred to as device data or mobile device data, is one such source of information, providing a powerful and insightful tool to measure the changes in visitation patterns, both negative and positive, almost in real-time. GapMaps' device data provide a clear picture of what has 12 SCN

happened to shopper visitation levels both during the lockdown period and in the various phases of recovery. For the purpose of comparison preCOVID-19 ‘normal’ is defined as the pre-Christmas period last year, ie. September 2019, and weekly tracking of visitation levels, for each type of shopping centre, has been undertaken up to Friday, 27 June 2020. The benchmark data presented below reflects the aggregated findings across 100 regional centres, 100 sub-regional centres, 150 neighbourhood centres and nine outlet centres, thereby providing a robust view of what has been happening across each level of the shopping centres' hierarchy. Chart 1 (above) shows the longer-term visitation trends for each centre type, commencing in September 2019. Chart 2 (top right) shows in greater detail the COVID-19 impacts, from the week commencing 20 January 2020 (when the first case of the virus was diagnosed in Australia) through to the week commencing 29 June 2020.

Along this timeline, the key inflection points were the period around 13 March 2020 when gatherings of 500 people or more were prohibited; 25 March 2020 when Stage 3 lockdown measures were imposed in all states; the first week of May 2020 when the progressive easing of restrictions commenced; and, for Victoria, the week commencing June 22. In that week, restrictions in Victoria were once again increased rather than eased, though not back to the same levels as the original lockdown conditions for most of Melbourne and the regional areas. For a small part of Melbourne, though, a hard lockdown was imposed at the end of that week and the confidence of the city’s population suffered a significant setback. On a national basis, the recovery in visitation levels continues to gain momentum steadily across all centre types though with neighbourhood centres maintaining their status as the centre format least affected. Regional, Sub-regional and Outlet centres are all now back to 90%-95% of their pre-

Chart 2: Daily unique visitors index: all centre types, COVID-19 period

Chart 3 Daily unique visitors index: Regional Centres

Chart 4 Daily unique visitors index: Sub-regional Centres

Christmas visitation levels and the strong rebound in visitation to Outlet centres being most evident. The trends by centre type are presented in Charts 3 to 5, showing the variations on a state-by-state basis for regional centres, sub-regionals and neighbourhood centres respectively. The state-by-state breakdown shows us that for regional centres in South Australia and NSW, visitation levels are back close to pre-Christmas normal, indeed even above that level in South Australia. In Queensland and Western Australia, levels are at 92%-93% of pre-Christmas norms, while in the ACT, greater reluctance to return appears evident with the level at about 80%-85%. Unfortunately for Victoria, where the trajectory was already showing a considerably slower rate of return, the recent surge in infection levels has translated almost immediately into a noticeable further drop-off, now sitting at about two-thirds of pre-Christmas levels. Expenditure tracking by groups such as Quantium, NAB and CBA similarly suggests that the recovery path for retail expenditure overall is now well established. Quantium is a leader in the field of digital transactions analysis, which is used to deliver insights into customer attraction and spending behaviours for shopping centres. Quantium’s transactions data shows that on a national basis, digital expenditure levels (ie. excluding cash) in all retail categories were higher by mid-June than they were in February, prior to the lockdown period. In some categories, most notably Retail Food & Liquor and Furniture & Hardware, expenditure volumes by mid-June were 20%-30% above February levels, while even in Apparel and Food & Beverage, digital spending had recovered to be above February. Quantium concludes that the 'retail wallet' had benefited from more physical stores being open and customers seeking retail therapy. Quantium’s analysis also shows that after achieving historic online market share highs of up to 80% during the lockdown period (ie. 80% of all digital expenditure was directed to the online channel), market share patterns were steadying at slightly above pre-COVID levels for most categories or still slowly trending downwards. Quantium estimates that, in broad terms, the share of discretionary retailing transacted online increased from about 20% pre-COVID to as high as 33% around mid-April but had dropped SHOPPING CENTRE NEWS 13

RESEARCH back to 25% by early June and is still slowly reducing. These market share changes have been witnessed against a background of significant growth, during late May and early June, in the size of the total digital discretionary retail pie as measured by Quantium, meaning the volume directed to bricks-and-mortar retailers, either omni-channel or pureplay, was still noticeably higher than it had been in February. The chart 6 highlights these findings. There is no doubt that we have witnessed a significant acceleration in both consumers’ willingness to engage even more with online retailing – through necessity – and many retailers’ willingness and commitment to utilise the channel, again through necessity. As I have noted in previous assessments for SCN though, there has been some tendency over the past few months to conflate the short-term impacts of the pandemic with some long-term trends that will continue to play out in the retail sector and I remain reluctant to jump to too many conclusions regarding where exactly the dust will settle in, say, six to 12 months’ time. The Australian Bureau of Statistics’ monthly series Retail Trade, which tracks the sales volumes of the retail industry on a store category basis, also points to significant recovery even as early as May (ABS June data are not yet available). For example, for the comparable 11-month period July to May 2020 period versus 2019, total national retail turnover was actually 2.7% higher, at $306.9 billion versus $298.8 billlion. While there have been some winners and losers across categories, as chart 7 shows, that normally happens every year. Interestingly, the much-maligned Department Stores categor y has reported stable sales, despite all the impacts of the pandemic, for the 11-month period. Of course, one unpalatable possibility, given the recent upsurge in the rate of new infections recorded in Victoria, is the spectre of moving back to more restrictive lockdowns, as has already occurred in Victoria. If so, the recovery path could be thrown into further disarray, especially if consumer confidence is impacted if efforts to curb the virus are seen to be failing. Clearly, all Australian governments, national and state, are resisting any push to move back to a national lockdown and are planning to use selective 'hotspot' lockdowns as the future strategy. 14 SCN

Chart 5: Daily unique visitors index: Neighbourhood Centres

Chart 6: Bricks-and-mortar vs. online shares, total retail spending (Source: Quantium)

Chart 7: Australia – retail sales, July – May 2019 and 2020 ($Billion, ABS Retail Trade Series)

In Melbourne, regrettably, the whole metropolitan area has needed to be locked down once again as the hotspot areas kept expanding during what is now a second wave for the city. Early signs are that the numbers of daily infections, though higher than in the first wave, are stabilising, but confidence has clearly taken a hit. Mobile device data offer the opportunity to continue tracking the

recovery period, to understand the nature of the changes and also whether or not visitation patterns are transitioning back to the old normal or will settle into some form of new normal, for each type of centre. Mobile device data can also be utilised for any specific centre to measure any or all of the above, and then to compare or contrast that centre’s performance with the relevant benchmarks for its peer centres. SCN

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SCCA COMMENT

The Government, Retail Associations and the SCCA, have all tried to reduce the stress being felt by stakeholders in the Shopping Centre industry. Certain retailers have suffered; others have done well, but there is no ‘one size fits all’ when it comes to assessing the effectiveness of Small and Medium Enterprises (SMEs) in the retail business. In this article, SCCA's Head of Research, Simon Hemphill, provides a thorough overview on how the Rental Assistance programme is working.

SME retailer rental assistance SIMON HEMPHILL Head of Research The Shopping Centre Council of Australia

n late March this year, as part of the COVID-19 response, the Prime Minister announced a strategy for the economy to go into hibernation. The idea was that certain businesses would need to go into hibernation, close their doors, and be able to come back and grow on the other side of the pandemic. This ‘hibernation strategy’ came shortly after the announcement of restrictions in mid-March, including ‘indoor gathering’ restrictions. Of note, these restrictions did not apply to shopping centres as, along with other activities such as pharmacies, supermarkets and public transport, our industry was deemed as being an essential activity. However, the restriction had a heavy impact on retailers such as cafés and restaurants. As part of the hibernation strategy, and an edict that landlords must ‘share the pain’ of the pandemic, the Prime Minister announced a mandator y Code of Conduct for commercial tenancies, including retail tenancies, which provided a framework and provisions for shopping centre owners and retailers to negotiate temporary leasing arrangements. The Code specifically applied to Small and Medium Enterprises (SME) – in other words it is an ‘SME Code’ – with an annual turnover of up to $50 million. Another key principle of the Code was that the SME tenants had to have suffered a reduction in turnover in order to qualify for rental assistance under the Code, including via eligibility under the JobKeeper program. 16 SCN

Timeline + food court, cinema and gym announcements

The SCCA worked with Australia’s other key national retail groups to produce a set of retail leasing principles and proposed a national Code of Conduct to guide and assist both SME retailers and owners during the period of economic turmoil. With groups such as the National Retail Association (NRA) and Pharmacy Guild of Australia (PGA) we announced a shared commitment to ensure business continuity. At the time, NRA CEO, Dominique Lamb, said: “We sat down immediately after the Prime Minister’s announcement to come together in good faith and continue our ongoing discussions to ensure landlords and tenants are working together.” Shopping centre owners and their retail partners have a mutual interest in business continuity (in spite of what you might read by certain commentators) and it was a positive to have a unanimous and timely approach to tackle the pressing challenges to be confronted in the retail environment in a way that is fair and balanced for all concerned.

The idea of the industry’s proposed Code of Conduct was based on existing successful industry Codes, where our industry has time and time again proven to work collaboratively and effectively, including the Casual Mall Licensing Code (authorised by the ACCC) and the Sales Reporting Code. Both Codes have oversight administration committees that are currently independently chaired by Mark Brennan, a former Victorian Small Business Commissioner and also Australia’s first Small Business Commissioner. Following an unparalleled level of expedited collaboration, the draft Code of Conduct prepared by our industry was submitted to the National Cabinet on 3 April 2020. The finalised Commercial Tenancy Code of Conduct (the Code) was announced by the Prime Minister on 7 April 2020, which included some government changes. It was then down to each jurisdiction to enact their own version of the Code at the state or territory level (see Timeline below). From here, states and territories had to legislate the Code, which took about

a month in total, with NSW being the first to regulate the Code in late April through to WA in late May. The Code’s application period is generally across the April to September period. The SCCA has monitored the implementation of the Code, including to ensure it is effective and as a basis for ongoing engagement with policy-makers and regulators.

So, is the Code working for our industry and the SME retailers? Are all parties reaching practical solutions to address the recent challenging economic circumstances? To answer these questions, the SCCA has been regularly sur veying its members on the rental assistance provided to SME retailers under the Code throughout this period. The data for this piece of research covers offers, in-principle agreements or agreements reached in relation to short-term rental assistance under the Code across a

SHOPPING CENTRE NEWS 17

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nine-week period, from 30 March to 31 May 2020. To date, we have publicly released two sets of data but for the purposes of this article, I will look at the dataset as a whole. The data and analysis focuses on our members’ obligations under the Code to make an offer of rental assistance to an SME retailer, which then progresses to an in-principle agreement (ie. terms are agreed) and then an agreement in the form of a legally-binding amended lease.

Key findings •

•

SCCA members have offered or reached agreement on rental assistance for 6,473 SME retail stores, which is 45% of SMEs that have requested assistance. 80% of all SMEs have requested assistance, highlighting 20% have traded well. SME retailers in shopping centres represent 63% of total stores. The top three retail categories being offered rental assistance are: (1) Cafés / food catering / take-away (26% of total), (2) Retail services (eg. hairdressing, key-cutting, shoe-repair) (21%) and (3) Clothing, footwear and accessories (14%). The top two retail categories being assisted were those affected from Government gathering / trading restrictions, covering almost 50% of all offers and agreements, noting that restrictions have now started to ease and that recent ABS Retail Data for May indicates the largest ever rise in Retail Trade.

Analysis of key findings Given that 80% of SMEs have requested rental assistance, it would appear to indicate that some SMEs have traded well during the period.

Feedback from our members highlights that some SMEs are not providing the required documentation under the Code to support requests for assistance. And further, some SMEs are requesting assistance despite having no reduction in turnover.

SCCA member centres Shopping centres have remained open throughout the COVID-19 period, as they were classified by government as ‘public transient places’ and ‘essential activities’ and were exempt from specific government gathering and trading restrictions. Care needs to be taken interpreting the results of this research, noting that (for instance) there are higher numbers of retailers in some categories (eg. clothing versus pharmacy), and higher numbers of retailers in some jurisdictions than others (eg. NSW versus Tasmania). SCCA member centres / portfolios have the following differing characteristics: • Located across all jurisdictions, and include metropolitan, regional and rural areas. • Comprise small neighbourhood centres through to CBD and large ‘regional’ centres. • Have a mixture of discretionar y / non-discretionar y retailers, including ‘essential ser vices’ retailers such as supermarkets, pharmacies that have not been impacted by government trading restrictions. • Comprise different trade catchment characteristics (e.g. low to high median household income).

Conclusion

A total 6,473 (45%) offers/ in-principle agreements / agreements have been provided to SME retail premises on a case-by-case basis during the analysis period. This amounts to approximately 151 agreements being reached per day, noting each requires formal lease / legal documentation to be completed consistent with the Code. 18 SCN

Disappointingly, some SMEs (including franchisors acting on behalf of franchisees) want assistance well beyond what is entitled under the Code and are hence not coming to an agreement. The top two categories: Cafés / food catering / takeaway and Retail services (eg. hairdressing, key-cutting) account for almost half of agreements reached (47%). Trading for these two categories were highly impacted throughout the analysis period by government directed closures and restrictions. ABS Retail Turnover data for May 2020 indicates the single largest monthly rise in seasonally adjusted Retail Trade on record, increasing by 16.9% on a monthon-month basis and by an equally impressive 5.8% year-on-year. New South Wales and Victoria accounted for two-thirds of rental assistance – noting these are larger markets and the Code was enacted earlier relative to other jurisdictions.

Rental relief is getting through to those who need it most and the Code is working for its purpose announced by the Prime Minister. We are currently in the process of collating the data to include negotiations that took place during the month of June and will continue to update our research in due course. SCN

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SHOPPING CENTRE INVESTMENT SPECIAL FEATURE

Figure 1 – Retail transaction volume and number

Source: CBRE Research

FY20 – A year of two halves Transaction volumes across FY20 were vastly different in H2 2019 and H1 2020. A number of record transactions were recorded in the back half of 2019, which included the respective 50% interest landmark transactions of Westfield Marion, SA and Garden City Booragoon, WA for a combined consideration of $1.25 billion while market uncertainty and economic volatility driven by COVID-19 saw transaction volumes decline sharply in H1 2020. Total transaction volumes above $5 million in FY20 totalled $6.4 billion across 185 transactions (Figure 1). This was 25.9% down on FY19, primarily driven by a slowdown in transactions in H1 2020. The advent of COVID-19 saw many investors delay decision-making due to travel restrictions, market uncertainty and global volatility. Total sales volumes in H2 2019 totalled $5.5 billion while just $883.4 million was transacted in H1 2020. Although the dollar value of transaction volumes was supported by a number of sales of larger assets, total sales numbers fell 23.9% from 243 transactions in FY19 to just 185 in FY20.

Figure 2 – Transaction volumes by state

Source: CBRE Research

Record transactions drive sales volumes Regional centres accounted for 19.6% of total transaction volume across FY20 despite comprising just two sales. Sales volumes were driven by record transactions in Western Australia and South Australia, both jointly marketed by CBRE and Colliers International. The largest retail transaction in FY20 was the 50% share of Westfield Marion, 20 SCN

Adelaide which transacted for $670 million reflecting a transaction yield of 5.25%. The asset was sold by Lendlease’s retail fund, APPF Retail and purchased by a Moelis Australia managed investment vehicle, fully capitalised

by SPH REIT. Westfield Marion is the largest and only super regional asset in South Australia. The other significant transaction was Garden City, Booragoon in Perth. AMP Capital, on behalf of the AMP Capital Diversified Property Fund (ADPF) sold a 50% share of the asset,

It was a ‘split year’! The first half – July/Dec 2019 was ‘normal’; however the second half – Jan/Jun 2020 was anything but because COVID-19 arrived! Sales of shopping centres over $5 million this year were some 26% down on the previous (2019) financial year. Down they may be; but the sector still accounted for some $6.4 billion in sales.

MARKET REVIEW – FY20 inclusive of management and development rights to Scentre Group to work in a JV partnership. The asset transacted for $575 million representing a transaction yield of 4.75%. Both deals were the largest to transact in their respective states and reflect continued investor appetite for high quality, well tenanted assets that dominate their respective catchments.

Following Vicinity Centres' divestment in late 2019 of their 25% interest and management rights of Mt Ommaney Centre in Brisbane to YFG Shopping Centres (YFG) for $94.5 million, May 2020 saw YFG acquire the remaining 75% interest from Nuveen Real Estate for $285 million, reflecting a transaction yield of 6.25%. New South Wales and Victoria dominate transaction volumes New South Wales and Victoria dominated sales activity, despite record transactions in South Australia and Western Australia. Excluding Westfield Marion and Garden City, Booragoon from South Australia and Western Australia’s total sales volumes, each state would have recorded $104.2 million and $212.0 million in transactions respectively. New South Wales and Victoria accounted for 57.5% of total retail transactions in FY20 (Figure 2). Victoria saw an increase in sales volumes in FY20 with total sales totalling $1.8 billion, up 13.5% on FY19. The largest transaction recorded in Victoria was Brimbank Shopping Centre, sold by CBRE for $153 million by Blackstone to Mulpha International. The asset’s location within one of Melbourne’s major growth corridors should see continued MAT growth. New South Wales recorded $1.8 billion worth of transactions across FY20; however, this was significantly down on FY19. Sales volumes in COPYRIGHT©

FY19 totalled $4.1 billion, in part driven by the transactions of Westfield Eastgardens ($720 million) and Westfield Bur wood ($575 million). There were no transactions greater than $175 million recorded in New South Wales in FY20 and subsequently sales were 55.1% down on FY19.

Appetite for smaller investment grade stock steady among privates Neighbourhood and sub-regional centre transaction volumes totalled $1.3 billion and $1.1 billion respectively across FY20. Neighbourhood centres comprised 21.1% of total retail transactions in FY20 which was higher than FY19 (16.4% of total retail sales) (Figure 3). Many investors are gravitating towards smaller assets (non-discretionary focused shopping centres) that provide an increased level of liquidity, lower occupancy risk and required capital expenditure. Furthermore, neighbourhood centres provide relatively attractive risk-adjusted returns when compared to other retail asset classes, commercial property assets and other types of investments such as equities and bonds.

Grocery retail, which comprises the bulk of the GLA in neighbourhood centres, saw strong sales growth during the COVID-19 pandemic. This helped drive foot traffic and resulted in occupancy levels in neighbourhood centres remaining broadly unimpacted. As a result, Woolworths, Coles and ALDI are fast-tracking plans to roll out new stores in their network to meet growing demand. The strength in grocery trade is expected to continue over the medium term and, subsequently, investor interest in assets with a strong performing Coles or Woolworths is expected to continue.

SIMON ROONEY

KATE BAILEY

Executive Managing Director and Head of Retail Capital Markets – Pacific, CBRE

Associate Director, Head of Logistics and Retail Research, Australia, CBRE

Simon Rooney has worked in the property industry for more than 20 years, drawing on an extensive range of experience and connectivity, serving his clients. Since 2010, this specialist team has transacted in excess of AUD $17 billion of retail investments, reflecting a national market share of approximately 70% by volume (agency-negotiated transactions >$200 million). Importantly, this team has been responsible for an estimated 85% by volume of agencynegotiated transactions to offshore investors (>$200 million), demonstrating unmatched international investor relationships. Simon’s unparalleled track record is underpinned by strong client relationships, first-class knowledge of potential capital providers and access to product.

Kate Bailey joined the CBRE Research team in October 2015 after working in the economic consulting and property strategy field. Kate leads the research team in Melbourne and Adelaide and is the national Head of Logistics and Retail Research. Kate began her career in 2008 working at a property economic consulting firm, gaining valuable experience providing advice to a range of public and private sector clients. Her role took her to the UK where she worked as a valuer and analyst for a property developer delivering key insights that helped inform development decisions. Upon her return to Australia, she spent four years at Coles working in property strategy and forecasting.

SHOPPING CENTRE NEWS 21

SPECIAL FEATURE

Major neighbourhood centre transactions recorded in FY20 include Norton Plaza Shopping Centre NSW, which transacted for $153.2 million, which represents a yield of 5.5%. Stockland Tooronga sold for $62.8 million on a yield of 6.7%. Both assets traded in Q3 2019 to domestic investors and were sold by listed REITs (GPT and Stockland respectively). It is likely that listed entities will continue to sell down these types of assets to maintain liquidity.

SHOPPING CENTRE INVESTMENT

Figure 3 – Transaction volumes by asset type

Source: CBRE Research

Redemption pressure for some retail funds Continued negative sentiment in the retail sector has seen a number of investors seek to reweight portfolios away from retail, which is putting redemption pressure on some retail funds. Across FY20, 51.1% of all transactions were from listed entities, up from 45.0% in FY19 and 28.2% in FY18. It is anticipated that unlisted retail funds will continue to look to divest noncore assets to ensure they have a degree of liquidity to meet any redemption requests. If retail REITs continue to trade at large discounts to NTA, they may choose capital management strategies that result in asset sales and subsequent share buybacks.

Figure 4 – Retail transaction vendor type FY20

Source: CBRE Research

Australia remains an attractive destination for offshore investors The proportion of total Australian retail assets sold to offshore investors increased significantly in FY20. Across FY20, 20.5% of transactions were to foreign buyers with the largest group made up of Singaporean investors whom invested $737 million in Australian retail assets. The proportion of foreign investment in Australian retail assets has been falling in recent years, comprising just 8.1% in FY18, 12.9% FY19 of sales over $5 million. The rebound in foreign investment in FY20 22 SCN

was primarily due to the transaction of Westfield Marion, excluding this transaction, the proportion of offshore investment would be 8.9% or approximately $566 million, which is below the ten-year average of 15.3%. The outlook for continued elevated levels of foreign investment in the

Australian retail sector is mixed. Instability in Hong Kong could spark further investment from the region as investors look to move capital out of Hong Kong. Conversely, growing diplomatic tensions between China and Australia could have an impact on the flow of Chinese capital entering Australia.

MARKET REVIEW – FY20 This trend has already been apparent since the Chinese government tightened capital outflows from China since 2018. A total of $73.3 million of capital from China was deployed into the retail sector over FY20, down from $621 million in FY19. The bulk of these transactions were smaller, neighbourhood or subregional assets purchased by private investors. Recent changes to FIRB regulations and approval process will see transactions from foreign investors potentially take longer to complete, however this should have little impact on the ability of investors to enter the Australian market. Australia’s relatively low COVID-19 infection rates and swift response to the slowdown in the economy will help promote Australia’s reputation as a stable, liquid market, with a population in relative health compared to other western economies. Stable population growth and limited supply of new retail assets should see the market maintain its appeal to offshore investors. Furthermore, the low cost of debt and low Australian dollar will promote Australia as an attractive destination for global capital, particularly for small to medium sized investors that don’t hedge against currency movements and regard currency arbitrage as an opportunity to boost returns on investment.

How are investors responding to COVID-19? Australia’s relatively low case number of COVID-19 and swift reopening of the economy has seen consumer and investor sentiment improve. Retail spend and foot traffic in retail centres are showing signs of recovery, however are expected to slow once Job Seeker and JobKeeper are rolled back at the end of September. Investors are refocusing and restarting decisionmaking processes with significant capital waiting to enter the market. There is a strong buyer preference for high quality assets, core investments and stringent due diligence as investors look to generate stable and reliable cash flows. Travel restrictions have made it difficult for foreign investors to inspect Australian assets. This is not expected to change until mid-2021, however a COPYRIGHT©

Figure 5 – FY20 Foreign investors – buyer origin

number of active offshore investors have established local offices or rely on trusted local capital partners and technology to invest into the Australian market.

Investors will seek out retail assets that can be future-proofed The Australian retail sector is going through a period of transformation with changing consumer habits impacting the performance of bricks-and-mortar retailers. This trend is consistent around the globe. Retailers who fail to adapt to these changes by improving their online platforms and investing in customer experience will likely be impacted most. The retail sector is set to face a few challenging years ahead as this transition period impacts retailers and landlords alike. The changing retail landscape presents an opportunity for investors, landlords and retailers to transform retail centres into mixed-use hubs and future-proof against continued change. The impact to retail spending has been strongest in the apparel and footwear and department store categories and, as a result, store networks may be consolidated, resulting in vacancy risks for landlords. Retail centres are increasingly becoming mixed-use hubs with

Source: CBRE Research

residential, education and office space all prevalent and investors are actively seeking out such assets. These uses increase footfall to retail centres and bring in customers in times when retail centres wouldn’t traditionally have customers (ie. early morning, late night). Investors will increasingly seek out centres with opportunities to develop these ancillary uses. The continued structural change in the retail sector will see investors seek out assets with the potential to diversify into mixed-use assets. Vacancies also present an opportunity for landlords to remix centres to ensure they are futureproofed to meet changing consumer needs. Centres with accessible loading docks and surplus carpark space could be repurposed to provide space for last mile fulfilment and click-and-collect however the economics of relatively higher retail rents may be a deterrent for some occupiers. This could increase income collected at the centre while click-and-collect facilities could increase footfall. Most retail centres have good connections to the local population base and transport connections, which are key criterion for last mile fulfilment. SCN SHOPPING CENTRE NEWS 23

RETAIL PROPERTY SALES REPORT SPECIAL FEATURE

Property Name State Sale Price Proportion GLA (m2) Capital Value Initial Yield ($m) Sold ($/m2) CBD Central Park Mall

NSW

174.5

100%

14,716

11,858

5.2%

Sydney Trust Building (Retail Portion)

NSW

105.0

100%

1,472

71,332

3.8%

171 Edward Street

QLD

80.0

100%

723

110,650

5.0%

Regent Arcade

48.5

100%

3.5%

Rockpool Bar & Grill and Spice Temple

NSW

40.0

100%

2,000

20,000

5.3%

337-347 Elizabeth Street, Melbourne

VIC

31.5

100%

900

35,000

Buckley's Bar, Opera Quays

NSW

25.1

100%

408

61,520

3.5%

106 King Street, Sydney

NSW

23.5

100%

370

63,514

Regional Westfield Marion

670.0

50%

136,808

9,795

5.8%

Garden City Booragoon

575.0

50%

72,843

15,787

4.3%

Sub-regional Mt Ommaney Centre (75%)

QLD

285.0

75%

56,469

6,729

6.2%

Noosa Civic Shopping Centre

QLD

253.5

100%

31,687

7,369

5.6%

Brimbank Shopping Centre

VIC

153.0

100%

37,605

4,069

7.6%

Waurn Ponds Shopping Centre

VIC

145.0

50%

48,618

5,965

5.9%

Stockland Jesmond

NSW

118.0

100%

20,345

5,800

8.5%

Corio Central

VIC

101.0

100%

31,501

3,206

9.0%

Mt Ommaney Centre (25%)

QLD

94.5

25%

56,469

6,694

6.3%

Great Western Super Centre

QLD

84.5

100%

15,008

5,630

6.8%

St Marys Village

NSW

68.0

100%

15,904

4,276

5.0%

Century City Walk

VIC

58.0

100%

8,403

6,899

5.1%

Kmart Northcote

VIC

27.0

100%

6,483

4,165

2.4%

Coles Northcote Plaza

VIC

25.0

100%

3,801

6,577

4.0%

Bass Hill Plaza

NSW

18.4

20%

20,006

4,599

6.0%

24 SCN

Sale date

Vendor

Buyer

Frasers Property, Sekisui House

SC Capital Partners, Fortius Funds

Aug 19

Private Investor

Hermes

Sep 19

Aria Property Group

Dexus

Nov 19

Ginos Group

Private Investor

Dec 19

Allegra Europea Holding, S.A.

Daybreak Holdings

Feb 20

Peter Stevens

Longriver Group

Dec 19

Well Glory Investment Pty Ltd

Private Investor

Nov 19

106 King Street Pty Limited

Swiss Concept

RETAIL TRANSACTIONS OVER $20 M / FY20

Oct 19

Nov 19

APPF Retail (Lendlease)

SPH REIT/Moelis

Dec 19

AMP Capital (ADPF)

Scentre Group

Mar 20

Nuveen Real Estate

YFG Shopping Centres

Aug 19

QIC

Stockwell

Dec 19

Blackstone

Mulpha Group

Jul 19

Australian Unity

ISPT

Aug 19

Stockland

Haben Property Group

Nov 19

Vicinity Centres

IP Generation

Nov 19

Vicinity Centres

YFG Shopping Centres

Dec 19

Charter Hall Retail REIT

Consolidated Properties Group

Oct 19

Mirvac Group

Private Investor

Jul 19

IProsperity

Chaolong Developments

Jul 19

Confidential

Private Investor

Sep 19

Confidential

Private Investor

Sep 19

Charter Hall Retail Partnership 6 (CHRP6)

Charter Hall Retail REIT (CQR)

SHOPPING CENTRE NEWS 25

Westfield Marion, SA

Property Name State Sale Price Proportion GLA (m2) Capital Value Initial Yield ($m) (Sold ($/m2) Neighbourhood Norton Plaza Shopping Centre

NSW

153.2

100%

12,249

12,508

5.5%

Stockland Tooronga

VIC

62.8

100%

8,973

6,999

6.7%

MarketPlace Warner

QLD

78.4

100%

11,477

6,831

5.7%

Junction Fair Shopping Centre

NSW

47.0

100%

7,225

6,505

6.9%

Benowa Gardens Shopping Centre

QLD

40.1

100%

5,768

6,952

6.8%

Stockland Cammeray Shopping Centre

NSW

39.2

100%

4,756

8,242

7.0%

Erindale Shopping Centre

ACT

39.0

100%

6,874

5,674

6.4%

Pacific Square

NSW

37.8

20%

13,723

13,773

Nineteeth Avenue Shopping Centre

QLD

35.3

100%

5,924

5,951

5.7%

Coles & Kmart Boronia

VIC

34.3

100%

10,124

3,383

6.0%

Raby Tavern and Shopping Centre

NSW

35.0

100%

3,300

10,606

Willowdale Shopping Centre

NSW

34.8

100%

5,446

6,390

5.6%

Spring Farm Shopping Centre

NSW

34.8

100%

4,813

7,220

5.8%

Keysborough South Shopping Centre

VIC

33.1

100%

5,437

6,093

5.4%

Woolworths Mandurah

32.0

100%

5,918

5,407

5.9%

Lennox Village

NSW

31.5

50%

10,065

6,259

6.2%

Pacific Pines Town Centre

QLD

30.8

100%

5,515

5,587

6.1%

Moonee Market

NSW

30.5

100%

10,751

2,839

6.2%

Newton Village

35.0

100%

9,965

3,011

5.6%

The Village Dandenong

VIC

29.1

100%

5,347

5,442

5.2%

Woolworths Ormeau

QLD

29.0

100%

4,560

6,360

5.9%

Woolworths Banksia Grove

27.3

100%

5,721

4,769

6.0%

Coles Greenacre

NSW

26.5

100%

4,733

5,606

5.8%

Taigum Village

QLD

26.5

100%

3,584

7,394

5.4%

Coles West Ryde

NSW

23.9

100%

3,985

5,985

5.9%

City Centre Plaza

QLD

23.5

100%

14,042

1,674

11.6%

Kyneton Shopping Centre

VIC

22.9

100%

3,830

5,966

5.4%

Coburg Hill Shopping Centre

VIC

21.3

100%

4,419

4,820

6.6%

Cowes Shopping Centre

VIC

21.0

100%

4,820

4,357

6.2%

Riverdale Shopping Centre

NSW

20.2

100%

6,156

3,276

7.3%

26 SCN

Sale date

Vendor

Buyer

GPT Group (WSCF)

Private Investor

Jul 19

Stockland

Newmark Capital

Dec 19

AMP Capital

Confidential

Jun 20

Fortius Funds Management

Stirling Property

Feb 20

Stockland

IJ Capital

Oct 19

Stockland

Fortius Funds Management

Dec 19

Charter Hall

Private Investor

Sep 19

Charter Hall Retail Partnership 6 (CHRP6)

Charter Hall Retail REIT (CQR)

Jan 20

Zagame Family

IPST

Oct 19

Coles Group

Private Investor

Nov 19

Walker Family

De Angelis Family

Sep 19

Coles Group

Private Investor

Jun 20

Woolworths Group

Primewest

Apr 20

Woolworths Group

Private Investor

Jan 20

Woolworths Group

Primewest

Dec 19

Vicinity Centres

Challenger

Aug 19

Stockland

PGA Group

Nov 19

Gowing Bros. Limited

Primewest

Mar 20

Makris Group

Revelop

Mar 20

RG Property

Private Investor

Nov 19

Canute Investments

Clarence Property

Jul 19

Woolworths Group

Platinum 28

Dec 19

ISPT (IRAPT)

Harrington Property Group

Oct 19

Taigum Retail Investments Pty Ltd & Seymour Properties

Private Investor

Dec 19

Coles Group

Private Investor

Jan 20

Centuria Retail Fund

Private Investor

Dec 19

Charter Hall Retail REIT (CQR)

Lascorp

Jun 20

APN Coburg North Retail Fund

Private Investor

Dec 19

SCA Property Group

Private Investor

Feb 20

Sentinel Countrywide Retail

Private Syndicate

RETAIL TRANSACTIONS OVER $20 M / FY20

Aug 19

SHOPPING CENTRE NEWS 27

Garden City Booragoon, WA

Property Name State Large Format

Sale Price Proportion ($m) Sold

GLA (m2)

Capital Value ($/m2)

Initial Yield

Craigieburn Junction

VIC

100.0

100%

22,999

4,348

Uni Hill Factory Outlets

VIC

67.8

50%

19,580

6,925

5.8%

Homemaker Prospect

NSW

64.3

100%

25,629

2,507

6.8%

Midland Megaplex

58.0

100%

20,913

2,773

6.8%

Casey Lifestyle Centre

VIC

57.0

100%

18,070

3,154

7.0%

Blaxland Home Centre

NSW

47.5

100%

19,299

2,461

7.2%

300 Parramatta Road

NSW

46.0

100%

9,647

4,768

5.5%

Geelong Gate Lifestyle Centre

VIC

44.3

100%

19,534

2,265

7.0%

Bunnings Rockhampton Complex

QLD

43.5

100%

18,319

2,375

5.4%

Bunnings Clyde North

VIC

42.3

100%

16,635

2,543

4.5%

City West Plaza

VIC

39.0

100%

22,163

1,760

5.3%

Bunnings Claremont

35.0

100%

5,460

6,410

5.5%

McGraths Hill Home

NSW

31.9

75%

16,478

2,579

7.0%

Parafield Retail Complex

27.3

100%

15,776

1,727

7.5%

Highpoint Lifestyle Centre

VIC

25.5

100%

7,000

3,643

4.8%

Stand Alone Circle on Cavill

QLD

61.8

100%

12,624

4,895

8.8%

Coles Greenacre

NSW

26.5

100%

4,733

5,606

5.8%

Woolworths Wadalba

NSW

26.2

100%

3,905

6,697

5.7%

Woolworths Fairfield Heights

NSW

23.8

100%

3,863

6,161

5.6%

1000 Nepean Highway

VIC

21.8

100%

4,376

4,982

5.3%

Coles Moe

VIC

21.1

100%

4,850

4,351

5.7%

Strip Village Walk

VIC

80.0

100%

2,800

28,572

286-294A Campbell Parade

NSW

25.4

100%

1,004

25,299

2.7%

386 Bourke St

VIC

22.5

100%

1,165

19,313

2.6%

82-106 Oxford Street

NSW

21.5

100%

32 The Corso (Westpac Bank)

NSW

20.2

100%

815

24,785

4.9%

28 SCN

Sale date

Buyer

Jul 19

Oreana Property Group

PGIM Real Estate

Dec 19

MAB Corporation

Vicinity Centres

Oct 19

Altis Property Partners

Dexus

Apr 20

Humich Nominees

Lester Group

Dec 19

Private Investor

Action Group

Jul 19

Intergen Property Group

Metro Storage Group

Mar 20

Altis Property Partners

Dahua Group

Aug 19

ISPT

Private Investor

Aug 19

Charter Hall

MPG Funds Management Limited

Nov 19

Bunnings Group

Charter Hall

May 20

Sentinel Property Group

Cadence Property Group (AUS), Assembly Funds Mgt

Nov 19

FJM Property

Charter Hall

Nov 19

Aventus Retail Property Fund

Aventus Property Syndicate 1 Fund

Jun 20

Cromwell Property Funds

HomeCo

Jul 19

Private Investor

Mar 20

EG Funds Management

Loi Keong Kuong

Dec 19

ISPT (IRAPT)

Harrington Property Group

Apr 20

Woolworths Group

Private Investor

Dec 19

SCA Property Group

Private Investor

Dec 19

Greenlit Brands

Private Investor

Dec 19

Charter Hall Retail REIT

Lascorp

RETAIL TRANSACTIONS OVER $20 M / FY20

Vendor

Jul 19

Richard Allen, Kingsley Allen

VicLand Property Group

Jun 20

Private Investor

Dec 19

Bak Hoe Goh, Bee Hoon, Yok Yeong Loh

Paul Lee

Nov 19

City of Sydney

Ashe Morgan

Sep 19

Private Investor

SHOPPING CENTRE NEWS 29

NRA COMMENT

A retailer employs a ‘casual’ worker. The employee doesn’t want permanent employment because the ‘casual rates’ are higher – casuals don’t have leave entitlements and other benefits enjoyed by permanent staff. But recently, the Federal Court ruled that a worker should receive back-pay entitlements because he worked ‘regular shifts’. The ruling could open a can of worms! DOMINIQUE LAMB Executive Director National Retail Association

Double dipping

ecently, the Federal Court handed down a bombshell ruling that could have far-reaching consequences across all sectors of the economy, including retail. The phenomenon of ‘double dipping’ has received a fair degree of attention in the IR world since a 2018 case involving labour hire firm WorkPac and a former casual employee. Basically, the Federal Court ruled that a former worker was owed back pay for entitlements not afforded to casual staff such as annual leave since he had worked regular shifts. Hence the term ‘double dipping’, given that as a casual worker he would have also received a higher wage than his permanent counterparts. Then in May this year, the court upheld its 2018 decision when it ruled in the case of WorkPac Pty Ltd v Rossato [2020] that a casual employee who had worked regular shifts was entitled to paid leave and rejected the opportunity for leave entitlements to be set-off against any casual loading “paid in error”.

So, what do these Federal Court rulings mean and what impact do they have on the retail sector? First, it’s important to clarify what exactly the Federal Court ruled. In layman’s terms, the decision was that a casual worker, in their particular circumstances, was entitled to be paid leave because they were not actually a casual. The ruling does not mean that 30 SCN

every casual worker now qualifies for leave entitlements. So, while all of you reading this can breathe a sigh of relief that not every worker you employ as a casual is now owed substantial back pay, the decision does inject a degree of ambiguity into what constitutes casual employment. And that presents a genuine issue.

The ruling opens up a real can of worms that could have ramifications for any industry that employs casual workers, and that is why the decision is relevant to retail. Our sector has one of the highest proportion of casual workers of any sector. If businesses are forced to back-pay leave entitlements to casuals who have worked regular shifts, it could spell doom for many businesses and the workers they employ. This would have potentially devastating economic implications in ordinary times, but with Australia now entering its first recession since 1991, the impact on jobs could be even more severe. Interestingly, one piece of feedback we often hear from our members is that even if they offer a permanent position to a casual employee, in many cases the worker rejects the offer due to the fact they’d prefer to maintain extra income in the form of a casual loading. This is

where the lack of clarity over the definition of a casual can have a big impact. As we progress further through economic recovery, we want retailers to feel empowered to employ more permanent staff, and not constrained from doing so by the rigid requirements of part-time employment under the Retail Award. JobKeeper has had the side-effect of highlighting the weakness in casual employment, namely that employers cannot compel those employees to attend work.

The priority now should be to restore clarity to casual employment arrangements, save as many businesses as possible and thereby save as many jobs as possible. This ruling by the Federal Court will only make that task harder, not easier. Double-dipping claims for leave entitlements from casual workers would almost certainly lead to further insolvencies. This will see the taxpayer – who is already subsidising the wages of many workers through JobKeeper – forced to pay twice as claims will be paid under the Fair Entitlements Guarantee. It is important that an amendment is made to the Fair Work Act that clarifies what constitutes casual employment. Otherwise, we will simply see both businesses and the workers they employ face the adverse effects. SCN

Creators of timeless Christmas memories and traditions SHOPPING CENTRES

C O R P O R AT E B U I L D I N G S

DOVECOTEDESIGN.COM.AU

LOCAL COUNCILS

03 9357 7370

MARKETING Marrickville Metro is a super performing Little Gun; in terms of MAT/m2, it's consistently one of the top 3 in the country. It sits in Sydney’s Inner West in a suburb well-known for its cultural diversity. It’s very definitely a ‘local’ centre; its management, marketing and leasing reflect that characteristic.

The value of community

arrickville Metro has always been focused on the local community – and with our home in the Inner West it’s no surprise. The Inner West is a tight-knit, vibrant, eclectic community that has always welcomed ever yone in. Our team at the Metro applaud that perspective and believe that community initiatives supporting our customers and retailers should be at the heart of ever ything we do.

At the Metro, we approach our job as more than just running a shopping centre. We start there, within our own four walls, but then we look outwards. We’re always looking at how we can make things better for our neighbours, our friends and our community generally.

DEAN YOUNG Asset Manager, AMP Capital and General Manager, Marrickville Metro

As a local employer, we have more than 800 workers in our centre. Many of the retail owners and franchisees are also locals. Maintaining jobs is extremely important to us and we’re focused on encouraging the community to come into the centre and support these local businesses during this time. Of course, doing this meant making some changes to the way we live, work and shop. In a sur vey conducted in May 2020* by AMP Capital Real Estate, 6,900 customers were asked what their main concerns and priorities are now and how this had changed during the COVID-19 pandemic. As expected, the number one priority was physical health and safety, but this was closely followed by 44.3% of customers who prioritised supporting their local community. 32 SCN

Paint Inner West REaD community event with local schools and services

Dean Young (Metro), Tracey Briggs (Salvos), Tim McMaster (Woolworths) We’re proud that at the Metro we are, and always have been, community focused. During the pandemic, many of our community initiatives were put on hold. But with retailers and cafés operating as restrictions ease, we're thrilled to see some of our safe community initiatives springing back to life as well. The Salvation Army Coffee Connections initiative is one that we’re exceptionally pleased to see return.

organised to fight the ‘loneliness epidemic’ sweeping our nation, which sees us feeling disconnected and isolated. These connections are even more important now. As a team, we’re also well aware of the key community concerns. These are things like sustainability, shopping local, the youth and the arts. We put our time and efforts into supporting these areas first and foremost. One of these initiatives is the Green Caffeen swap and go reusable coffee cup scheme. This initiative aims to combat the over one billion disposable SHOPPING CENTRE NEWS 33

St Pius School kids planting Community Garden at Metro

cups that are thrown away each year in Australia, most of which end up in landfill or the ocean. We also work closely with local schools and community centres, including St Pius Primar y School, Newtown Neighbourhood Centre and the Addison Road Community Centre, to support them in their work. And we work closely with local youth with the fantastic Paint Inner West REaD children’s events. It’s one thing for us to make decisions about how to give the community support, but it’s far better to listen to what the community itself believes it needs. That’s why we’re so proud to support these local organisations. In order to keep our locals up-to-date with the progress of the community inspired development, we set up a local residents Facebook page at the commencement of the development in Januar y 2019. We kept our local customer and residents updated via this channel. Since then, this group has been a wonder ful source of information for local residents and a place for them to ask questions. 34 SCN

Seeing the community support and interest in our development project inspired us to put on free community events to say thank you to the community for supporting us throughout the development works. We wanted to ensure that the events also honoured the things the community found important. So, we partnered with local businesses like Oz Harvest and Willie the Boatman in order to bring these to life. The new community-inspired hub currently under development will feature a market-style showcase of artisan fresh produce, food products, authentic ethnic cuisines and a variety of indoor and alfresco dining and drinking destinations, handpicked from some of the best names in Australian produce and hospitality. We’ve worked with amazing local

artists to ensure that the new space reflects the artistic, creative and diverse community that is its home. This includes the implementation of a local art program featuring talented local artists Georgia Hill, Liz Shreeve, Helen Proctor, George Rose and Fintan Magee. Each of these artists will create bespoke artworks that will combine to form a large-scale, contemporary art piece throughout the Metro. This local art program will not only add beauty and interest to the Metro’s development, but will also contribute more than $400k to the local creative industr y. An outcome that our team is ver y proud of. Centres are important places for social connection and entertainment. We want to continue being a community hub, a common place where people can come and feel comfortable, connected and supported. We know customers want to spend more time with family and friends, and they’re really looking forward to heading out to meet and eat with loved ones. But of course, they want to do it in a safe and hygienic, community-focused environment. We’re going to make sure they have it. SCN *A survey was carried out in May 2020, by AMP Capital Real Estate with more than 6,800 respondents across Australia and NZ. * The findings showed among customers' top concerns was supporting their local community and businesses (44.3%).

Retail continues to evolve, innovate and invent through adversity - becoming more social, more purposeful, with more outdoor bustling public space. hdrinc.com/au

MARKETING In this article, SCN ’s very own marketing expert, Belinda Daly takes a look at the future of marketing with a deep dive into what makes Generation Z tick. Generation Z are digital natives, born between 1995-2009 and there are two billion of them now globally. Do we really know them? What appeals to them? What is their impact on the future of retail?

Next Generation Marketing BELINDA DALY Director – Marketing and Partnerships, Shopping Centre News

Generation Z – SnapChat, TikTok and IGTV are part of their everyday

one are the days when mass marketing actually had an impact on sales and growth for an organisation. Now with so many digital channels available and access to customer data, a good marketer needs to know your customer – not just understanding what platforms they are using but taking a deep-dive into your target market’s intrinsic thinking and motivation behind their choices in life. For us in retail, we need to know their impetus for choosing one service over another, choosing your shopping centre over the one down the road, and their choice in brands and products. To understand the psyche of this generation, you have to understand their way of thinking. The third annual, international study of Generation Z, conducted by The Center for Generational Kinetics and commissioned by WP Engine, revealed new expectations for the web by Generation Z. 36 SCN

52% of Gen Z can’t go more than four hours without internet access before they become uncomfortable. They are innately digital natives and see no difference between the online and offline worlds.

For years businesses have been talking about online/offline strategies, bricks-and-mortar, omnichannel and multi-channel strategies. It’s time to do away with these terms because Generation Z sees no distinction between the worlds. This generation has the highest level of digital fluency and were practically born with a smartphone in their hands.

Why is Generation Z important for the retail industry? Currently, there are two billion of them globally. By 2025, the group will make up 25% of the Asia Pacific (APAC) population, 21% of Australia’s population and 27% of our workforce (2020 McKinsey & Company). And they’ll be a smart bunch with one in two predicted to obtain a university degree (2020 McCrindle Research, Australia). So what does this mean for marketers? There are many research reports on Generation Z – they will soon become the most researched cohort ever.

Gen Xers.Take Patagonia, front and centre of their website is their mission: “We’re in business to save our home planet.” No mention of their products they are selling, it’s all about their value. Their website features as much content about saving the planet as it does product, and advertising imager y features young people caring about the world. 3. Brands must humanise themselves Gone are the days of faceless and boring advertising delivered in corporate brand colours. The real winners in this space are those brands that consistently engage with their customers with real-life content that would seemingly be created by consumers themselves (even if there is a big production team behind the scenes). Other ways to humanise your centre’s brand is to use customers, use retailers, tell a story, share a handwritten customer review… the list is quite endless once you put down the corporate veil. With the gig economy shut-down, during the latest COVID-19 isolation

are popular. They are also more likely to want “brands that set them apart”. Thomas Rüdiger-Smith, leader of McKinsey’s Consumer Packaged Goods and Retail practices in Asia Pacific said: “For companies looking to win over Generation Z, brands need to be agile and stable, regionally aware and locally focused, environmentally sound and acutely price conscious, social-media savvy and respectful of privacy, and authentic and able to tell a compelling story.” 4. Keep messaging simple and short Less information but high quality messaging is more effective. The human attention spans are dwindling and for Gen Zers that number is only eight seconds, and as they straddle between five screens at any given time, marketers have an incredibly challenging task to get their attention. However, if you can answer these three questions it’s a good starting point to create quality material that will engage young people: • Do you understand what they care about?

I’ve distilled the top five things marketers need to know to attract the Generation Z market: 1. They are greatly influenced by video content I had to stop myself recently when I was explaining to my ten-year-old daughter what a HandyCam was – gone are the days when we carried around multiple devices to record life’s moments! This generation feed off video content like it is lollies. SnapChat, TikTok and IGTV are part of their everyday existence. Brands need to not only engage on these digital platforms but they must also create content that is authentic, engaging and sells through clever execution. 2. Green and long-lasting quality go hand-in-hand The previous generation, the Millennials cared about the environment greatly and so do Generation Z. However, there is a key difference; this cohort are looking for both sustainability and premium quality. For example, they are willing to pay more for ethical clothing that will last – both in quality and in style. They are no longer the throw-away society of generations past. In Australia, Gen Zers are more likely than their elders to say that they are willing to pay more for environmentally responsible products – 39% for Gen Zers versus 28% for Millennials and 16% for COPYRIGHT©

Patagonia – a strong brand set

period, Melbourne Central launched MCTV. The Melbourne CBD destination is connected with its audience via digital and interactive content channel MCTV – a place where art, lifestyle and culture collide – and real humans connect with others on digital platforms, importantly uncurated and raw. In the latest Generation Z Report by McKinsey & Company, the report stated that 40% of Gen Zers prefer brands that

• Is

it content that is shareable with friends and family – and Byte Pals (friends they only know online)? • Is the content authentic and relatable? 5. Their influencers are each other – not ‘influencers’ Back in the 1990s in shopping centre marketing, you sat in a boardroom and said: "Our strategy is to generate wordof-mouth” and good community shopping centres and retailers did just that. This SHOPPING CENTRE NEWS 377

McKinsey & Company Gen Z survey results strategy is basically the same, but now, it’s digital. Brands now need to rely on what people say about them on these platforms, as Generation Z use their friends' endorsements and opinions online to influence their decisions; not sponsored posts, paid influencers and heavily curated content. Enter the complex world of marketing. Consumers who create their own content and recommend a brand are the strongest marketing tool any company can have.

Generation Zers are effectively millions of brand managers walking around, they have a digital presence that represents their own brand and they only interact with brands openly that reflect themselves. Gen Z’s identity is inextricably tied to their digital footprint. 38 SCN

“Gen Z are digital pioneers and have charted the path for the rest of the world to go fully digital,” said Mark Randall, Country Manager, ANZ for WP Engine. “In Australia, lockdown has caused a profound change in the way we do everything, from shopping to eating to engaging with friends and family. Gen Z was already comfortable in that new paradigm, so if you meet the digital needs of Gen Z, you now meet the needs of the rest of the world.”

Should marketers be using TikTok as a marketing tool? TikTok launched as Douyin in China in September 2016, it was designed for creating and sharing short videos. The following year, in 2017, the app was launched by ByteDance for markets outside of China and named TikTok outside of China. TikTok is available around the world via the App Store or Google Play stores. With 800 million users1 worldwide and 52 minutes

average daily time spent on the app (Business of Apps, 2019) – it’s a consideration for all marketers! And did I mention TikTok has reached two billion downloads globally? In Australia more than 850,000 have downloaded the app, but that’s a fair gap between the most used social media platform Facebook with 16 million active Australian users2. Personally, the app has provided lots of entertainment during COVID-19 lockdown and the use of the app is surging as Australians replace traditional entertainment with digital consumption. For marketers and brands, the platform is like other social media channels hand as plenty of business options. The older demographic is increasing on the platform but predominately the younger cohorts including Generation Z are heavy users. So it comes back to marketing basics, is your target market on TikTok? If the answer is yes, give it a try. SCN 1 Datareportal 2020 | 2 Social Media Statistics May 2020

FOR THE LOVE OF

RETAIL

Tailored innovation and genuine collaboration.

As a result of the COVID-19 crisis, many developments and redevelopments of shopping centres have been put on hold – but you wouldn’t think so with a list as long as the one below! The projects featured span the country; from Perth to Sydney and from Adelaide to Townsville. It’s a development pipeline that runs into the billions.

In the Pipeline 80 Collins, Melbourne VIC Armstrong Creek Town Centre, VIC Bay Central, Woolooware Bay NSW Bayfair Shopping Centre, Tauranga NZ Caddens Corner, Penrith NSW Castle Towers, Sydney NSW Chadstone, Melbourne VIC City Lane City Arcade, Townsville QLD Como on the Parade, Norwood SA Distillery Road Market, Beenleigh QLD Eastlakes, Sydney NSW Eastland, Melbourne VIC Ed Square, Edmonston Park NSW Grand Central, Toowoomba QLD Home HQ, Artarmon NSW Huntlee Shopping Centre, North Rothbury NSW Hyperdome, Logan QLD Karrinyup Shopping Centre, Perth WA Marrickville Metro, Sydney NSW Merrifield City, Mickleham VIC MLC Centre, Sydney NSW Port Adelaide Plaza, Adelaide SA Quay Quarter Lanes, Sydney NSW Ripley Town Centre, Ripley QLD Southgate, Melbourne VIC Strathpine Centre, Brisbane QLD The Walk, Bourke St Mall Melbourne VIC Waterfront Place, Brisbane QLD Watergardens, Taylor's Lakes, VIC West Gosford Village, NSW Westfield Doncaster, Melbourne VIC Yamanto Central, Brisbane QLD 40 SCN

Armstrong Creek Town Centre, VIC

80 Collins, Melbourne VIC 80 Collins Melbourne is a landmark new luxury, premium retail and dining destination that commenced opening in June 2020. The site is strategically located at the ‘Paris end’ of Collins Street in Melbourne’s CBD and comprises more than 100,000m2 of space across offices, retail and a hotel. Opening in late 2020, Next Hotel will offer an immersive new experience inspired by the Parisian and equine history of the location. Owner: Dexus and DWPF Management: Dexus Retail category: CBD Development stage: Under construction Project type: New extension and refurb Start date: April 2017 Completion: September 2020 Project cost: $700 million ($100 million Next Hotel) Project size: North Tower: 50,000m2; New South Tower (Office): 43,000m2; Retail approx. 4,800m2 (21 Retailers) NEXT Hotel 17,000m2 (255 rooms) New tenants: Georg Jensen, Mulberry, Saint Laurent, Nick and Nora's, Lucas Group, Macquarie, McKinsey, DLA Piper, NEXT Hotel Architecture: Woods Bagot, UN Studio, Jouin Manku Creative direction: Seventh Wave Builder: Multiplex Project team: Duo Projects Developer: QIC Global Real Estate Leasing: Eddie Giraldo, Sammi Sciberras COPYRIGHT©

The Armstrong Creek Town Centre will be the civic, commercial and social heart of Armstrong Creek, the fastest growing area in Victoria. Situated on more than 40 hectares, the centre will offer a sustainable and vibrant place for the community to shop, live, work and play. The new shopping precinct will provide the local community and visitors with a vibrant food and dining experience. The shopping centre will be anchored by a full-line Coles, Dan Murphy’s and more than 30 specialty retailers to support the massive population growth forecast for the area over the next 15 years.

Owner: Welsh Group Management: JLL Retail category: Neighbourhood Development stage: Under construction Project type: New development Completion: July 2020 Project cost: $60 million Project size: Stage 1 – 10,000m2, Stage 2 – 19,600m2 New major tenants: Dan Murphy’s, Coles Supermarket Architect: Clarke Hopkins Clarke Builder: Hutchinson Project Manager: Codicote Leasing: Adam Lester, Stephanie Siadis, Mark Reid

Bay Central, Woolooware Bay NSW Bay Central is Woolooware Bay’s hub of life and activity – a vibrant 18,000m2 centre integrating supermarkets, a fresh food marketplace, more than 50 speciality stores, and dedicated dining and wellness precincts. The interconnected community of Woolooware Bay will be the new destination town centre for the Sutherland Shire. With a Woolooware Bay residential community of 900 homes, the adjoining CronullaSutherland Sharks Leagues Club and Ground, together with the new retail precinct, will make Bay Central the new home of retail and lifestyle convenience.

Owner: Aoyuan International and Capital Bluestone Retail category: Neighbourhood Development stage: Under construction Project type: New development Start date: May 2019 Project cost: approx. $120 million Project size: 18,000m2 (retail centre) New major tenants: Woolworths, ALDI, Dan Murphy's Architect: Turner Architects Development Manager: Matt Crews Leasing: Wallaringa and Colliers International SHOPPING CENTRE NEWS 41

Caddens Corner, Penrith NSW

Bayfair Shopping Centre, Tauranga NZ Bayfair Shopping Centre is the Bay of Plenty’s largest undercover shopping centre and prides itself on being a leader in sustainable and accessible retail spaces with inclusive community facilities and services. The first phase of Bayfair’s $115 million expansion included the opening of an additional 50 speciality stores new to the region and a new Countdown supermarket. The second phase of its dramatic transformation included the alfresco dining precinct (Dine at Bayfair). The opening of United Cinemas in Q3 this year will signal the end of the development, and cement Bayfair’s position as the region's leading retail, dining and entertainment destination. Owner: AMP Capital Shopping Centre Fund and Fisher Funds Management: AMP Capital Retail category: Regional Development stage: Nearing completion Project type: Extension Start date: December 2017 Completion date: Q3 2020 Project cost: $115 million Project size: Incremental GLA 8,774m2 Centre GLA on completion: 41,445m2 New tenants: United Cinemas, Mecca Maxima, Seed Heritage Architects: Woodhams Meikle Zhan Builder: Foster Construction Project Manager: Ivan Bartley Development Manager: David Cosgrove Leasing: Fiona Cameron 42 SCN

Located on O’Connell Street, Caddens Corner is part of The Quarter, Penrith’s health and education precinct, Caddens Corner is uniquely connected to Western Sydney University, TAFE Western Institute and the Nepean Hospital. The aim is to provide a destination for local residents, nearby workers and the broader community with a centre of activity and place to meet. Offers range from everyday shopping convenience and services, to childcare, gym, food and dining precinct.

Owner: Western Sydney University Retail category: Super neighbourhood Development stage: Under construction Project type: New development Start date: June 2019 Completion date: Q2 2021 (Stage 1) Project size: 9,500m2 New major tenants: Woolworths Architect: Nettletontribe Builder: Mainbrace Constructions Project Manager: Kaipara Property Development: Kaipara Property Group Leasing: Joe Haine

Castle Towers, Sydney NSW The Piazza upgrade project will see Castle Towers' already popular dining and entertainment precinct, The Piazza, enhancing its design and ambience to deliver an environment that encourages the community to enjoy, dwell and relax. Alongside upgrades to tiling, columns, lighting, and landscaping, year-round weather protection will be installed to extend The Piazza’s appeal and further contribute to the night-time economy of the region.

Owner: QIC Global Real Estate Retail category: Regional Development stage: Under construction Project type: Refurbishment Start date: Jan 2020 Completion date: Dec 2020 Project cost: $11 million Project size: 4,820m2 Centre GLA on completion: 116,121m2 Architect: The Buchan Group Builder: Construction Control Project Manager: Turner & Townsend Development Mgr: David Tewksbury

In the Pipeline

Chadstone, Melbourne VIC Aiming to meet 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 redevelopment of Chadstone will include a 2,400m2 co-working space, 5,300m2 health and wellbeing services and a 20,000m2 nine storey office building. Two parking upgrades will deliver 1,400 additional car spaces providing additional capacity for further expansion, with a focus on improving access to, and circulation around Chadstone.

Owner: Vicinity Centres and Gandel Group Management: Vicinity Centres Retail category: Super Regional Development stage: Plans approved Project type: Extension and refurb Start date: 2021 Completion date: 2025 Project cost: Approx. $97 million (Car park); $130 million (Office building); $53 million (Dining and leisure expansion); $340 million (Fresh food and wellness); $37 million (Luxury expansion) Development Manager: Vicinity Centres Leasing: Vicinity Centres

City Lane City Arcade, Townsville QLD A proposed $7 Million expansion of City Lane will see the iconic laneway extended and the introduction of a civic square with landscaping and vegetation to provide an inner-city oasis for the community. The existing Sturt St building will be repurposed with new alfresco style seating and approximately 650m2 of new food and beverage options. The expansion plans are in direct response to local community feedback and the success of the existing City Lane precinct, which opened six years ago. COPYRIGHT©

Owner/Manager: Lancini Property Group Retail category: CBD Development stage: Plans submitted Start date: Subject to DA approval Project type: Extension Project cost: est. $7 million New major tenants: New food and beverage tenancies Architect: Cavill Architects Builder: Laurence Lancini Constructions Development Manager: Tomas Lancini Leasing: Andrew Pheely, Adam Martin

Como on the Parade, Norwood SA Como on The Parade is set to revitalise the heart of Norwood. The Norwood Mall is to be demolished in early 2021 to make way for a premium mixed-use development comprising a next generation Coles Supermarket, 10 retail specialty stores in a covered Mall, a 900m2 medical centre and 347 carparks. Above this new centre, 77 residential apartments – including 24 sky terraces and four penthouses will be constructed together with abundant green spaces, communal entertaining areas and an exclusive business club. This 'eastern suburbs destination' on arguably SA's No.1 high street has three street access and will transform shopping and living in Norwood. Owner: APD Management: Colliers International Retail category: Neighbourhood Development stage: Plans approved Project type: New development Project start date: Feb 2021 Completion date: Nov 2022 New major tenants: Coles Project cost: $110 million Architects: Studio Nine Architects Project Manager: APD Leasing: Lauren Smith, Colliers SHOPPING CENTRE NEWS 43

Eastlakes, Sydney NSW The new Eastlakes Shopping Centre has a stunning architectural design that celebrates the indoor-outdoor Sydney lifestyle and opens to the neighbouring parklands. The specialty stores will reflect the cultural diversity of the neighbourhood and will connect the restaurant promenade and street cafés. A proposed medical centre, landscaped gardens and children’s play areas will bring the area alive. The 2,800m2 retail area at the north end of the site will have 12 outlets including a full-scale ALDI, a bakery, butcher and chemist, in addition to the main shopping centre.

Owner: Crown Group Management: Crown Group Retail category: Neighbourhood Development stage: Under construction Project type: New development Start date: May 2020 Completion date: Early 2021 (Stage 1) Project cost: $740 million Project size: 19,300m2 Centre GLA on completion: 19,300m2 New major tenants: Woolworths, ALDI Architect: FJMT Builder: Crown Group Development Manager: Geoff Moses Leasing: Joshua Bush, Colliers

Distillery Road Market, Beenleigh QLD Situated halfway between the Gold Coast and Brisbane, Distillery Road Market (DRM) is designed to celebrate the region’s love of fresh produce, dining and entertainment. Australia’s next great food market and a much-needed heart for a thriving community, DRM will become a space for families, a source of regional growth and a magnet for tourists and the global food generation. Based on the understanding that people are seeking more rewarding retail, dining and social experiences, DRM will house a curated offering of fresh food markets, grab-and-go eateries, restaurants, an iconic brewery, Smokehouse, engaging entertainment experiences, enveloped by a vibrant market environment and activations. Owner: Tonken Property Group Retail category: Regional Development stage: Under construction Project type: New development Start date: 2019 Completion date: Late 2021 Project cost: $50 million Project size: Approx. 10,000m2 Architects: Medhurst Architects Project Manager: Michael Byrne Development Mgr: Kenton Campbell Leasing: Luke McGrath, Colliers 44 SCN

Eastland, Melbourne VIC Eastland is continuing its evolution from a retail-led shopping centre to a vibrant mixed-use town centre, introducing a range of complementar y uses to meet the evolving needs of a growing community. The next phase in the evolution is the introduction of co-working, or flexible office space, to Level 3 of the East Mall. Co-working responds to the changes in workplace dynamics, consumer preferences, and increased requirements for cost and space efficiencies through the provision of agile and collaborative workspaces.

Owner: QIC Global Real Estate Retail category: Regional Development stage: Under construction Project type: Refurbishment Start date: Feb 2020 Completion date: Feb 2021 Project cost: Approx. $19 million Project size: 3,500m2 Centre GLA on completion: 141,367m2 New major tenants: Waterman Group Architect: Fender Katsalidis Builder: Otto Project Manager: James Coffey Development Mgr: Georgina Bishop Leasing: QIC Global Real Estate

In the Pipeline

Ed.Square, Edmonston Park NSW Ed.Square is set to become a benchmark town centre, situated within Sydney’s South West Priority Growth Area. Proposed to comprise a full line 4,200m2 Coles and 166m2 Liquorland, six-screen Event Cinema inclusive of two V-Max auditoria, fresh food market hall, eat street, medical centre and about 90 shops in stage one. Ed.Square Town Centre is expected to transform the area’s social landscape. Owner/Mgr: Frasers Property Australia Retail category: Sub-regional

Development stage: Under construction Project type: New development Start date: October 2018 Completion date: September 2021 Project cost: Construction $145 million Project size: 24,500m2 New tenants: Coles, Liquorland, Cinema Architect: HDR, Hames Sharley, Hassell Builder: Probuild Project Managers: Daniel Leaf, Vanessa English Development Manager: Joanna Russell, Thomas Rethati Leasing: Tim Moore

Grand Central, Toowoomba QLD The Grand Central Cinema Expansion extends the existing cinema complex and introduces Toowoomba's first V-Max cinema. As part of this project, Event Cinemas is undertaking a refurbishment of the existing cinema complex, while refreshing its brand from a Birch, Carrol and Coyle to an Event Cinemas. The revitalised cinema will reinforce Grand Central's place as the top entertainment destination for Toowoomba and provide a unique point of difference in its local community. COPYRIGHT©

Owner: QIC Global Real Estate Retail category: Regional Development stage: Under construction Project type: Refurb-extension Start date: Feb 2020 Completion date: Nov 2020 Project cost: $8 million Project size: 4,019m2 Centre GLA on completion: 91,000m2 Architect: Buchan Group Builder: Hutchinson Builders Project Manager: Jack Dodgson Development Manager: Kirsten Newman

Home HQ, Artarmon NSW The project represents the successful execution of the key strategic objective that drove the acquisition of the asset by Fortius in mid-2018. The addition of an urban farm and food and beverage oasis will fuse dining and lifestyle retail like nothing seen before in large format retail in Sydney. With its glazed pavilion design and mix of formal and casual alfresco dining spaces, acre Artarmon will offer a stunning farm, bakery, café, bar restaurant and functions space. Innovative and sustainability focused, the project is transformative for the asset and will reposition Home HQ Artarmon as an exciting and relevant destination well beyond its Lower North Shore catchment. Owner: Fortius Funds Management Retail category: Bulky goods Development stage: Under construction Project type: Expansion Start date: April 2020 Completion date: Oct 2020 Project cost: $4 million Project size: 1,858m2 New major tenants: acre Eatery Architect: Susanne Pini, HDR Creative Design: Emilie Delalande, Etic Builder: Mainbrace Constructions Project Mgr: Mostyn Copper Development Mgr: Melissa Kaczmarek Leasing: Shane Cook, CBRE SHOPPING CENTRE NEWS 45

Hyperdome, Logan QLD

Huntlee Shopping Centre, North Rothbury NSW Huntlee Shopping Centre will include a 3,200m2 market-style Coles supermarket boasting an in-store bakery, open-style meat counter with a qualified butcher, large gourmet deli and fresh produce area, plus a 200m2 Liquorland. The centre also includes 1,062m2 designated for specialty shops, as well as 240 car spaces. Huntlee Shopping Centre will create more than 120 new retail jobs and will service a wide number of the surrounding villages, with the nearest major supermarket approximately 20km away. Owner: Coles Group Property Dev. Ltd. Management: Colliers International Retail category: Neighbourhood Development stage: Under construction Project type: New development Project start date: July 2019 Completion date: September 2020 Project size: 4,567m2 Centre GLA on completion: 4,567m2 New major tenants: Coles supermarket, Liquorland Architects: EJE Architecture Builder: Taylor Construction Group Project Mgr: Catalyst Project Consulting Development Mgr: Andrew La Martina Leasing: George Wragge, Luke Rutledge 46 SCN

Hyperdome’s North Mall is undergoing a transformation, increasing the centre’s amenability and convenience. As part of the development, Woolworths will relocate into a brandnew space next to a refurbished Big W, transforming the North Mall into a go-to destination for everyday essentials. The project is also creating two new entrances, revitalising the facade and internal finishes, two new play spaces and a dedicated parcel pickup point. Owner: QIC Global Real Estate Retail category: Regional Development stage: Under construction

Project type: Refurbishment Start date: October 2019 Completion date: July 2020 Project cost: $29.35 million Project size: 20,068m2 Centre GLA on completion: 80,234m2 New major tenants: Woolworths Architect: Buchan Group Creative Design: Cavill Architects Builder: Built Project Manager: Tom Parry Development Managers: Sunil Ranu, Caitlin Forgan Smith Leasing: Melissa Hollins, Terry Lerner

Karrinyup Shopping Centre, Perth WA Karrinyup will transform into the heart of Perth – the best retail, food and leisure destination in WA. Karrinyup is where you connect with nature through high ceilings, water and natural timber – it has a uniquely coastal design that is elegant, sophisticated yet warm. Upon completion, Karrinyup will deliver a unique mix including new large-format international retailers, high-quality fashion brands and an exciting food and entertainment precinct. Owner: UniSuper Management: AMP Capital Retail category: Regional

Development stage: Under construction Project type: Expansion and refurb Start date: November 2018 Completion date: October 2021 Project cost: $800 million Project size: Circa 65,000m2 Centre GLA on completion: 109,000m2 New major tenants: HOYTS, H&M, UNIQLO, ALDI, Coles Architects: Taylor Robinson, Chaney Broderick and Hames Sharley Builder: Multiplex Project Manager: Proven Project Mgt Development Manager: Brenton Loth Leasing: Jackie Merriman

In the Pipeline

Marrickville Metro, Sydney NSW The Marrickville Metro development will extend the existing centre to the south, and upon completion will increase the GLA of the centre to 33,000m2. This vibrant, eclectic space has been designed to celebrate the food and art culture of Sydney’s Inner West and pay homage to the industrial heritage of the local area, while also enhancing the retail, leisure, dining and fresh food offerings of the existing shopping precinct. Owner: UniSuper Management: AMP Capital

Retail category: Sub-regional Development stage: Under construction Project type: New development Start date: Feb 2019 Completion date: 2021 Project cost: $142 million Project size: 11,000m2 GLA on completion: 33,000m2 New major retail tenants: Coles Architect: Hames Sharley Builder: ADCO Constructions Project Manager: Aaron Todd Development Manager: Robert Lewis Leasing Manager: Stuart Norman

MLC Centre, Sydney NSW

Merrifield City, Mickleham VIC Merrifield City is the new retail-led town centre for Victoria’s largest mixeduse master planned community, Merrifield. Encompassing a 30-hectare site, Stage 1 of the project will introduce a neighbourhood shopping centre, encompassing the region’s first supermarket, 2 mini majors, and 19 specialty stores. Complementing this convenient retail offer will be an external children’s play area and 350 car parks. Owner: QIC Global Real Estate, MAB Corporation and Gibson Property Corp. COPYRIGHT©

Retail category: Neighbourhood Development stage: Under construction Project type: New development Start date: Nov 2019 Completion date: Late 2020 Project cost: $41.4 million Project size: 6,702m2 Centre GLA on completion: 6,702m2 New major tenants: Coles Architect: NH Architecture Builder: Maben Project Manager: Tony Growse Development Mgr: Georgina Bishop Leasing: Cris Jonsen, Shawn Grant, QIC

The MLC Centre will be transformed into a vibrant community offering retail, dining, cultural and commercial spaces in the heart of Sydney's CBD. The MLC Centre has proudly been part of the Sydney landscape since 1978. Its next evolution will build on Harry Seidler’s design principles and plays on the geometry of the existing forms around the base of the tower to deliver a unique experience and revitalised public spaces, cementing the iconic location as a true mixed-use destination. Owner: Dexus and DWPF Management: Dexus Retail category: CBD Development stage: Under construction Project type: New development Start date: June 2019 Completion date: Late 2021 Project cost: Circa $170 million Project size: 6,000m2 New tenants: Valentino Architects: Woods Bagot Builder: Probuild Project Manager: Compass Project Management Development Manager: Lucy Burnitt Leasing Manager: Cameron Haddad SHOPPING CENTRE NEWS 47

Quay Quarter Lanes, Sydney NSW

Port Adelaide Plaza, Adelaide SA Port Adelaide Plaza is a vibrant shopping Centre, northwest of Adelaide's CBD. Stage 2, of the development, is scheduled to open late 2020 and presents new retail opportunities to join The Reject Shop and many other wellknown quality brands in everyday fashion, footwear, discount variety, travel, fresh produce, financial services, casual dining and health and medical services. On completion, Port Adelaide Plaza will comprise more than 60 specialty retail stores and services and 900 car spaces. Through its curated mix of shops and services, Port Adelaide Plaza connects diversity in retail, casual dining and services to balance a positive ‘everyday shopping’ experience, with the intimacy and community sentiment of a village. Owner & Manager: Precision Group Retail category: Sub-regional Development stage: Under construction Project type: New extension and refurb Project start date: April 2018 Completion date: November 2020 Project cost: $50 million Project size: 16,225m2 Centre GLA on completion: 29,500m2 New tenants: ALDI, The Reject Shop, Paisley Park Early Learning Centre Architect: Brown Falconer Builder: Badge Constructions Project Manager: Podia Group Development Manager: Michael Gillett Leasing: Edmond Krecsik 48 SCN

Quay Quarter is a vibrant destination for Sydney being developed over two city blocks in Circular Quay. Quay Quarter Lanes is a boutique, character-filled precinct with heritage restorations and three new residential buildings with ground and first floors of fine grain lifestyle retail, restaurants, cafés and pocket bars. The beautiful historic Hinchcliff House will be home to anchor tenancies offering inspired dining experiences. Quay Quarter also features Quay Quarter Tower with more than 4,000m2 of additional retail.

Owner/Manager: AMP Capital Retail category: CBD Development stage: Under construction Project type: New incl. heritage refurb Start date: June 2018 Completion date: Q1 2021 Project size: 3,600m2 New tenant: Restaurateur Scott Brown Architects: SJB, Studio Bright, Silvester Fuller, Carter Williamson, Lipman Partnership, ASPECT Builder: Richard Crookes Constructions Project Manager: Thelem Consulting Development Manager: Liann Lim Leasing Manager: Richard Walters

Ripley Town Centre, Ripley QLD Ripley Town Centre is challenging the traditional conventions of masterplanned communities, by elevating the standard of economic, social and environmental sustainability. The masterplan draws on the 20-minute neighbourhood philosophy to create a low-carbon, connected community with major facilities and amenities across retail, health, education and community space all within a 20-minute walk. Stage One was delivered in 2018 and features approximately 20 specialty stores across café and casual dining, health, beauty, services and business.

Owner: Sekisui House Australia Management: Knight Frank Australia Retail category: Regional Development stage: Stage One complete. Future masterplan stages to be announced Project type: New development Start date: 2016 Completion date: 2033 (approx.) Project cost: $1.5 billion total project development value on completion Project size: Stage One 9,400m2 GFA New major tenants: Coles Architect: ThomsonAdsett Builder: Hutchinson Builders Project & Development Manager: Sekisui House Australia Leasing: Knight Frank Australia

In the Pipeline

Strathpine Centre, Brisbane QLD 151 Property’s redevelopment of the Strathpine Centre in Brisbane will boost amenities and lifestyle options in Strathpine, and enhance its profile as a community hub. In response to customer research, the development will meet the needs of the familyoriented community with the inclusion of a family-friendly licenced restaurant, a new kids’ play area and childcare. A tenancy remix, new vibrant communal spaces, as well as carefully designed upgrades to existing retail, food court and mall precincts and amenities, will support the repositioning strategy.

Owner: Swordfish Australian Sub ATF Strathpine Trust Management: JLL Retail category: Sub regional Development stage: Under construction Project type: New extension and refurb Start date: Jan 2020 Completion date: Sept 2020 Builder: Mainbrace Constructions Project Mgr: Artazan Property Group Development Manager: Albert Messaike Leasing: Victoria Miller, Tim Clayton

Southgate, Melbourne VIC The proposed development seeks to revitalise the landmark riverfront precinct by unlocking Southgate’s potential and reinvigorating the iconic shopping and dining destination. The city-shaping project will reimagine and rebuild the two-hectare Southgate site, introducing a state-of-the-art 21-level tower to the precinct and expansive new public meadow space that will inject much needed greenery into the area. A revamp of the current retail and dining format and changes to the tenant mix found at the precinct will also form part of the redevelopment to create an allday lifestyle destination that welcomes everyone. Owner/Mgt: ARA Australia Retail category: CBD Development stage: Plans submitted Project type: New extension and refurb Start date: 2021 (subject to approval) Completion date: 2023 Project cost: $800 million Project size: 17,773m2 GLA on completion: 10,000m2 (retail) Architect: Fender Katsalidis Leasing: ARA Australia COPYRIGHT©

The Walk, Bourke St Mall, Melbourne VIC The proposed development of 'The Walk' will provide approx. 6,000m2 (including rooftop bar and dining) of net lettable retail area across three levels plus two hotels comprising 451 rooms. The hotels will be located from levels two to level ten with access on the ground floor of the retail arcade. The proposed development will allow for a seamless flow of foot traffic between Bourke Street and Little Collins Street and offer world-class retailers in the heart of Melbourne's CBD.

Owner: Steadfast Capital Retail category: CBD Development stage: Plans submitted Project type: New development Start date: 2020 Completion date: 2023 Architects: Buchan Group Leasing: Colliers International SHOPPING CENTRE NEWS 49

Watergardens, Taylor's Lakes, VIC

Waterfront Place, Brisbane QLD The Waterfront Brisbane proposal is a city-shaping development for the Queensland capital, designed to enable people and business to thrive. Dexus’s $2.1 billion transformation of the city’s businesses district embraces the river, incorporating two new towers, riverfront dining, retail outlets and public plazas. The public will benefit from a new improved section of the Riverwalk that creates an unimpeded, consistent and generous promenade. The 30-year-old Eagle Street Pier building will make way for two towers of 49 and 43 storeys with a combined 120,000m2 of office space and a vibrant active retail and public space. Subject to securing the relevant approvals, construction on the Eagle Pier site is expected to commence in 2022 and the first tower is to be delivered in 2026. Owner: Dexus and DWPF Management: Dexus Retail category: CBD Development stage: Plans submitted Project type: New development Project cost: $2.1 billion Project size: 120,000m2 Development Mgr: Matthew Beasley Leasing: Eddie Giraldo 50 SCN

Watergardens’ Station Street project is a complete refurbishment and reconfiguration of the existing alfresco dining and entertainment precinct at the centre. The project will replace two vacant, large format restaurants with five new-to-market dining operators, alongside an extensive refurbishment of the existing common area, which forms a key thoroughfare from Watergardens Train Station into the centre. Watergardens’ has also embarked on Stage 2 of The Marketplace Place project.

Owner/Mgr: QIC Global Real Estate Retail category: Regional Project type: Refurbishment Start date: Late 2020 Completion date: Mid 2021 Project cost: $15 million Project size: 3,000m2 Centre GLA on completion: 65,000m2 New tenants: Timezone & Zone Bowling Architects: Techne (Station Street) and Buchan Group (The Marketplace Stage 2) Development Manager: Matthew James Leasing: Nick Maguire

West Gosford Village, NSW West Gosford Village is a neighbourhood centre anchored by Coles and complemented by speciality retailers. Conveniently located in a high profile location, it's situated on the Junction of the Central Coast Highway and Brisbane Water Drive, the gateway to Woy Woy, Ettalong, Umina and Terrigal. The centre's refurbishment, including a new dining precinct and childcare centre, will reinforce West Gosford Village as the preferred destination to shop, dine and enjoy all the things West Gosford has to offer.

Owner: Mintus Properties Management: Savills (NSW) Pty Limited Retail category: Neighbourhood Development stage: Plans submitted Project type: New extension and refurb Start date: August 2020 (proposed) Project size: 9,251m2 New major tenants: Hungry Jack's, Medical Precinct, Kids Club Early Childhood Education Architect: D+R Architects Development Manager: James Vergos Leasing: Chris Ireland, Troy Deviesseux

In the Pipeline

Westfield Doncaster, Melbourne VIC A $30 million redevelopment of Westfield Doncaster’s level two dining and entertainment precinct is currently underway and due to be completed in August 2020. Previously home to six restaurants, the space will transform into a modern-village style rooftop dining and entertainment precinct complete with up to 14 restaurants. Complementing the existing Village

Cinemas, the new indoor/outdoor precinct will open both day and night and is set to become a convenient social destination for Melbourne’s East. Owner: Scentre Group, joint venture partners ISPT and M&G Real Estate Asia Property Fund Management: Scentre Group Retail category: Super regional Development stage: Under construction

Project type: New extension and refurb Start date: Aug 2019 Completion date: Aug 2020 Project cost: $30 million Centre GLA on completion: 123,000m2 Architect/Builder: Scentre Group Development Manager: Scentre Group Leasing: Scentre Group

will also feature state-of-the-art health and wellbeing facilities, a casual dining precinct and medical centre, providing much needed retail amenity and services. Owner: JMK Retail Management: JMK Retail Retail category: Sub-regional Development stage: Under construction Project type: New development Start date: October 2019

Completion date: Q2, 2021 Total construction cost: $72 million Project size: 20,000m2 Centre GLA on completion: 20,000m2 New major tenants: Coles, Kmart Architect: Buchan Group Builder: Mainbrace Constructions Development Manager: DMA Partners Leasing: Michael Haddrick, Comac

Yamanto Central, Brisbane QLD Yamanto Central is the first stage of the highly anticipated Yamanto Town Centre masterplan, which is being developed on a greenfield site in Brisbane’s western growth corridor; one of Australia’s fastest growing regions. Offering the local community a modern, engaging and vibrant retail hub boasting a Coles and Kmart, along with 50 specialty shops. Yamanto Central COPYRIGHT©

SHOPPING CENTRE NEWS 51

Movers & Shakers To coincide with SCN's 'In the Pipeline' development feature, we invited four industry 'movers and shakers' to tell us how they started their career in property development and discuss some of the current issues, challenges and trends as well as share their tips and advice for someone starting a career in property development...

Greg Johnson National Sustainability Manager Stockland Greg Johnson is Stockland’s National Sustainability Manager, providing support to the Commercial Property business. Greg has been responsible for the development and implementation of sustainability policy and strategy for the past 16 years, and has worked at Stockland since 2007. With his background in building services, operations and asset management, Greg has a comprehensive understanding of the issues of measuring the performance of buildings and the integration of sustainability into operations for existing buildings and in the design for new developments. Greg has oversight of Community Development, focusing on the areas of health and wellbeing, education and community connection to develop partnerships and programs aimed at strengthening community resilience. Greg is an Accredited NABERS Assessor and Green Star Accredited Professional and has been an integral member of project teams that have delivered successful Green Star projects across a range of building typologies including office, retail, interiors and performance. Can you give us a summary of your career, including highlights and any memorable moments? This is a timely question because I have just celebrated 40 years in my career. I’ve had a few changes, but I started out in the air conditioning trade where I spent 12 years working in the commercial HVAC industr y. My first career change was moving into facilities management with Colliers and JLL, where I spent eight years as an Engineering Manager. My career changed again after I moved to Colonial First State 52 SCN

Property and became a Sustainability Manager in 2002. That was a turning point at a time when sustainability was still an emerging challenge for the property sector. I was still on a learning curve when I joined Stockland, where I have been for 13 years. A recent career highlight was being named one of 40 inaugural ‘Green Star Champions’ by the Green Building Council of Australia. That honour symbolises all my highlights, which are the 18 Green Star projects we have delivered over the years, 12 of them Retail Town Centres.

Do you have a favourite project? My favourite project was Stockland Green Hills, which achieved a 5 star Green Star As Built rating. I chose this because it was such a diverse project with many sustainable design elements that combined all of what we have learned over many projects, including a 1.8 MW solar PV system, an adult change room for people with disability, inclusive play spaces and, in partnership with Multiplex, we established an employment and skills centre, that placed more than 180 people into construction and retail jobs.

What do you love most about property development? I love being part of a project team and helping shape the sustainability vision for the development. We learn something from every project and I enjoy seeing people take ownership, stretching and looking for ways to innovate. I love seeing the project come to life from a hole in the ground to the opening celebrations for the completed centre. Every project has its own identity and each has done something we have never done before.

Greg Johnson

Brenton Loth

Duncan McAndrew

PROFILE

Stephen Choi

What are some of the trends you are seeing in terms of retail property development?

What advice would you give to someone starting in property development?

Stockland Green Hills Solar PV

Not yet a trend, but certainly emerging are the new criteria included in the next generation of Green Star rating tools. Green Star for ‘New Buildings’ won’t only be about what we do in design for a retail centre. It will also focus more on what we can do around responsible procurement and the sourcing and lifecycle of materials, social construction practices, wellbeing, culture and heritage and the resilience of the building and its systems. With zero carbon buildings that are

See yourself in the future. Set yourself milestones and understand what you need to do to get there. Reflect on success and failure and be prepared to adapt. Be good to people along the way. They help you become who you want to be.

What are some of the issues/ challenges being faced in the current environment?

What impact has COVID-19 had on property development?

In the climate emergency we are facing, we are beginning to understand the path to zero carbon buildings. We have more work to do to reduce the embodied carbon in the materials we use and to work towards a circular economy where there is no such thing as waste, just a resource that can have another life. We can do better to provide places that are more inclusive for people with disability, especially where it is not always visible. This will have greater importance as we adapt our retail centres to become more resilient.

COVID-19 will force us to rethink built environments in so many ways. We will still construct new buildings, but the idea of being fit for purpose will be different. With what we experienced last summer with smoke and dust, and the pandemic now, there will be a greater focus on hygiene and indoor environment quality. There was already talk about the future of autonomous vehicles and drones and if physical distancing continues, carparks, delivery and pick up zones will need to function differently to accommodate artificial intelligence. The rules haven’t been written for this yet.

fully electric and powered by renewables, we will need to find alternatives to cooking with gas. Most importantly, Green Star will reward buildings where attention to place-making delivers more enjoyable and activated places that will attract people and drive trade. Stockland has been involved in the development of the new rating tool and, as a participant in the Green Star Early Access Program, we have had insight into the new credits and what is required to achieve a rating and are starting to test these on our new projects. The first of the new Green Star rating tools for new buildings will be launched towards the end of 2020. SHOPPING CENTRE NEWS 53

Movers & Shakers Brenton Loth Project Director AMP Capital Brenton Loth, Project Director at AMP Capital Shopping Centres, has made a significant contribution to the property industry in his 14-year career. Brenton has steered industry leading projects including: Bishops See, Brookfield Place and Ocean Keys Shopping Centre. Brenton is currently driving the delivery of the $800 million redevelopment of Perth’s premier shopping destination – Karrinyup Shopping Centre.

Can you give us a summary of your career, including highlights and any memorable moments?

Can you tell us about your current project?

After attending Curtin University and completing a Bachelor of Commerce, I started my career with Multiplex as an Assistant Development Manager. Within my first year, Brookfield had acquired Multiplex and I witnessed first-hand the transition of an iconic Australian business. After seven years North Mall, Karrinyup and having worked on some amazing projects including Bishops See and Brookfield I have been lucky in my career to Place, I made the decision to join work on a number of large-scale, highAMP Capital. This was mainly due profile development projects, including to the significant retail development Brookfield Place and, most recently, pipeline, which was very appealing to me. Karrinyup Shopping Centre. Every Since joining AMP Capital, I have project is special for various reasons had the pleasure of working with some but the one thing I remember and value talented and inspiring people. My the most is the people I work with and current motivation is to drive the the passion it takes to deliver a large successful delivery of the Karrinyup complex development. The bond that is Shopping Centre development, which once complete will become Perth’s created by working in a high performing team is something that you can’t beat! premier shopping destination. 54 SCN

I am currently working on the $800 million Karrinyup Shopping Centre redevelopment, which will see the centre almost double in size, from 59,000m2 to 109,000m2. The centre is located 12 kilometres north of Perth’s CBD and just over three kilometres from Perth’s most prestigious coastal suburbs. As part of the development, we are expanding our fashion offer with new large format international retailers and the latest in contemporar y designer brands. We are constructing a new fresh food precinct and a comprehensive external food, leisure and entertainment precinct anchored by HOYTS.

What do you love the most about property development? I love the variety of my role. Ever y day offers up something different. One minute I will be sitting in a design meeting discussing how we can create the ultimate customer experience and the next minute I will be providing a financial update to the fund manager and owner. I also love the buzz that you get on opening day, when the team's

PROFILE hard work and dedication comes to fruition and our customers get to explore and experience something that we have created.

What advice would you give to someone starting in property development? Build a strong and diverse network that will challenge your thinking and push you to learn. A diverse skill set will allow you to wear multiple hats and provide the ability to jump in and out of the detail with discipline experts in your team, while also being able to manage the ‘big picture’. As we have all experienced with COVID-19, you also need to be flexible and be prepared to adapt strategies quickly as the retail

support our retailers and create a true partnership that will generate long-term benefits for all stakeholders. The desire of the community to suppor t local businesses has been great to see. We are encouraged by the positive feedback received post trading restrictions being relaxed. Our centres will need to clearly demonstrate activity and offerings in these areas to align with the evolved customer needs.

What impact has COVID-19 had on property development? We have all worked tirelessly to suppor t the measures put in place to slow the spread of the virus and provide a safe and hygienic environment for all our customers,

Fresh Market precinct, Karrinyup

landscape is moving faster than ever.

What are some of the issues/ challenges being faced in the current environment? Other than the financial impacts from COVID-19, ‘physical health and hygiene’ and ‘supporting local community and businesses’ have become and will continue to be priorities for the industry. This will impact our developments now and into the future and we need to be prepared to adapt. Alleviating customer concerns around hygiene and social distancing is paramount in our design and way of thinking. We also need to create a place to reconnect, and this is critical to help encourage visitation and increase dwell time. Now more than ever, we need to COPYRIGHT©

retailers and all staff. The pandemic has given the industr y time to pause and consider whether their chosen development plans are still in line with the communities’ needs and wants. Project returns are also ver y fluid at the moment, and it would be fair to say that we are still yet to fully understand the impacts of COVID-19. During the past three months, consumers have spent more time than ever shopping online. However, online can’t compete with the diverse experience that a shopping centre has to offer. We have all missed the opportunity to socialise and share experiences that only built form can provide. We need to work closely with our tenants and retailers to deliver the ultimate customer experience.

While construction of the Karrinyup development is progressing well, given the current environment and the var ying challenges, we are working on the appropriate revised timing of our next stage launch.

What are some of the trends you are seeing in terms of retail property development? As we navigate this new era alongside our retail partners, what remains clear is that shopping centres ser ve a vital role in our communities, providing local jobs, essential ser vices for customers as well as facilitating that all-important human need of social connection through new experiences.

To stay relevant, existing centres will need to provide a wider range of experiences and more flexible spaces that allow retail offers to evolve to meet customer needs. I believe there is a real opportunity to embrace mixed use. Integrating residential and office uses into a retail precinct can provide a place where people can genuinely ‘live, work and play’. On completion, Karrinyup Shopping Centre will provide a mix of dining, entertainment, leisure, health, beauty and retail services with flexible spaces for play and events. This will complement the core fashion and food offering that has traditionally seen Karrinyup trade extremely well. In addition, our masterplan includes up to four residential buildings, with the opportunity to deliver more than 300 apartments. Combining these elements will create the ultimate destination and a sense of community. SHOPPING CENTRE NEWS 55

Movers & Shakers Duncan McAndrew Queensland State Manager Mainbrace Constructions Duncan McAndrew is Queensland State Manager at Mainbrace Constructions. He has nearly 30 years of experience in construction spanning most sectors of the industry, including commercial, retail, industrial, institutional, residential and interior fit outs. Duncan held the role of Senior Estimator in his early days with Mainbrace before being promoted as the company’s Chief Estimator and then Queensland State Manager in 2012. A versatile and experienced manager with extensive technical knowledge, Duncan oversees and supports all projects undertaken by the Queensland team and is the man behind the team building one of Queensland’s largest current retail projects, the landmark Yamanto Central project in Ipswich.

Can you give us a summary of your career, including highlights and any memorable moments? I started in construction in 1992 after I graduated with a Bachelor of Building – Construction Management (Honours) from UTS. My first full-time job was with an interior fitout firm mainly focused on office projects in Sydney. From there, I held different positions with several Sydney-based construction and development firms, mainly in estimating roles, before joining Mainbrace in 2002. I was born and bred in Sydney but now call Queensland home. Mainbrace had worked on numerous projects in Queensland over the years and when the time came to establish a permanent presence, I was quick to put my hand up to help establish the new office. These days, I’m largely focused on business development; growing and managing our pipeline. There have been many highlights along the way. The new centre we built at Morisset, near Newcastle, for Woolworths was a memorable project and I still have fond memories of the first project I secured with Mainbrace, a refurbishment of a Woolworths supermarket in Broken Hill. 56 SCN

Can you tell us about your current project? Today, it’s a privilege being part of the team building the new Yamanto Central in Ipswich. It’s a great opportunity to create a new town centre-style development in an area where the appetite for new retail and social infrastructure is strong.

What do you love most about construction, especially in retail? Retail is fast-paced and ever y project is unique, which makes it exciting, especially when you’re working in a live environment. No two days are the same. There’s a great team atmosphere in this industr y. The people you work with and the relationships you forge make it worthwhile, and it’s a rewarding feeling to come together at the end of the project, hand over the keys to a happy client, and reflect on a job well done. It’s a sense of satisfaction that’s hard to replicate. At Mainbrace, we’re lucky to work with high-profile customers at the cutting edge of new retail environments. What you’re building will be visited by ever yone in the local community, so you’ve got to get it right.

What advice would you give to someone starting out in the industry? Starting out, if you have a genuine interest in learning the ropes and improving your skills, people will appreciate and respond to this. They’ll take the time to teach you, share their experiences, and help you along the way. There are no stupid questions so ask anything. Collect as much knowledge as you can. No one expects you to know everything, there’s always someone who’s done it before, and there are always new ways to approach challenges and solve problems. Great teamwork is needed to make a

PROFILE

The new town centre-style development at Yamanto Central, Ipswich

construction project successful and the best people to have in your team are enthusiastic, genuine and willing to learn.

What are some of the issues/ challenges being faced in the current environment? The skills shortage is a key issue in construction and the question we need to ask is “how can we entice more men and women from diverse backgrounds into the industry?” Attracting young men and women to undertake an apprenticeship and learn a trade is challenging in the context of a competitive employment COPYRIGHT©

market, so we need to appeal to young people in new and different ways. Otherwise, in ten to 15 years from now, the shortage of skilled workers in specific trades may become more pronounced. Elsewhere, the challenges faced by the construction sector mirror those faced by other industries. For example, the need to adapt to new technologies, and balance the broader desire for everything to be delivered cheaper and faster without compromising on safety and quality.

Supermarket Refurbishment divisions, helping them to re-purpose, re-position and future-proof their assets in flexible ways.

What impact has COVID-19 had on the construction industry?

What are some of the trends you are seeing in terms of retail construction?

To date, governments have viewed the construction industry as essential and we’ve been able to remain operational. It has helped our pipeline remain on track. On site, procedures like enhanced cleaning regimes, sequencing of trades and maintaining social distancing have been necessary. The challenge will be making these measures habitual. There’s still a natural inclination from our site and office teams to greet each other with a handshake and breaking some old habits will be hard. At Mainbrace, we’ve been fortunate to be able to continue to add value to our clients through our Interiors and

As some shopping centre owners, landlords and retailers work to re-position themselves, it will be important for us to continue to work with our clients to help them engineer better outcomes for their retail assets. The pandemic is obviously still playing out but I’m optimistic for the future.

Retail spaces need to be flexible and adaptable. They need to be places that encourage interactions instead of merely facilitating transactions. Dwell time is now a real focus. This is taking the form of more entertainment and leisure precincts, higher quality dining precincts, relaxation spaces, health and social services, pop-ups and other engaging formats that can adapt and change over time. Of course, adding an extra layer of complexity are the new social norms that have emerged as a result of COVID-19, for which there are still many unknowns. It all reinforces the dynamic, fast-paced nature of retail. SHOPPING CENTRE NEWS 57

Movers & Shakers Stephen Choi Executive Director Living Future Institute of Australia Stephen Choi is currently Executive Director of Living Future Institute of Australia and the Living Building Challenge Manager for Fraser’s Burwood Brickworks, which is aiming to be the world’s most sustainable shopping centre and is the first to attempt the Living Building Challenge®. Stephen was recently awarded the Australian Institute of Architects 2020 Leadership in Sustainability Prize. Stephen was recognised by the Jury for his ‘ability to take the principles to practice’, and they commended Stephen for his long-term advocacy and engagement “to enable delivery of change within sustainability across multiple areas of the value chain”. As an educator, advocate, executive director, media commentator and project manager, Stephen wears many hats but his passion for sustainable design is the constant underpinning his diverse career. Can you give us a summary of your career, including highlights and any memorable moments? Honestly, I started in property when I first picked up LEGO as a child. I was reasonably satisfactory at both the sciences and the arts, and I thought that architecture was the perfect hybrid profession. I entered the industry some 20 years ago, and haven’t looked back much actually, but here are some highlights: • Qualifying as an Architect (in London) • Working on Zero Carbon homes and Passivhaus buildings as a Project Architect • Embedding sustainable construction into educational curriculum as part of an EU initiative • Moving from London to Sydney (without flying, if anyone is interested) • Working on radical retrofit projects, co-curating the Australian Institute of Architect’s National Conference • Helping to deliver the Burwood Brickworks Shopping Centre, which is attempting to be the world’s first “Living Retail” development under the Living Building Challenge®. 58 SCN

What do you love most about property development? The chance to actually do something that everyone cares about, and do it well. The word 'development' should refer to the fact that property as an industry is so imperfect, despite efforts across the world for millennia – and there is so much to make better. I love the opportunity to contribute to a better world every day, for lots of people.

What advice would you give to someone starting in property development? Have clear and authentic intentions, and don’t close your mind. So many people equate property to finance, or think of buildings only as commodities, and little else. Buildings are predominantly for shelter, for connection, for belonging. Good money follows our desire for those things, not the other way around. If you are not too sure exactly what you want to do, then try lots of things, and go deep into as many as you can. Do something you care about, either in a job or voluntary capacity.

What are some of the issues/ challenges being faced in the current environment? I feel that many of the challenges currently in front of us are not new; they haven’t changed for decades, but have presented themselves to us in different forms. The desire for higher quality is always in battle with the 'race to the bottom' culture we have when it comes to choosing contractors and consultants. There is a real lack of oversight when it comes to ensuring our built environment actually adheres to Town Planning and Building Codes, let alone more aspirational standards. Bad buildings are so static when considering the bursts of progress we’ve seen in other industries – our practices are comparatively archaic in the face of issues raised by technological advancement. The challenges are exciting.

What impact has COVID-19 had on property development? COVID-19 has demonstrated that everyone has opinions, and most of them prove incorrect!

PROFILE

There is uncertainty at a macro scale, but we create our own uncertainty too. If anything, COVID-19 should remind us of what is important, and how our built environment shapes our ways of being. Beyond more plastic screens, touch-free fixtures, and sanitiser stations, we need to look at what our society is striving for: I see people gravitating towards a sense of nature, of fresh, clean air, and ways of overcoming potential loneliness – these are things that good property development can achieve.

What are some of the trends you are seeing in terms of retail property development?

Burwood Brickworks aims to be the world’s most sustainable shopping centre

So many! Biophilic design is increasingly spoken about, but rarely done well. That will change. The innate human desire for connection to the natural world will leave old retail models behind.

A demand for product transparency is going to ripple through the supply chain, not just in the products sold in shops, but in the way retail environments are built, how they are curated, and how they operate on a daily basis. It is not going to be acceptable to keep building retail developments that are devoid of life, or that make us physically or emotionally unhealthy, or that make ecological problems worse. The importance of personal and corporate brands will continue to prevail. Retail places are increasingly where we will look to interact with the world not just locally, but also globally, through communication technology. There is still going to be mission-shopping and there is still going to be a desire for a meaningful experience. We are not just consumers. SCN COPYRIGHT©

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A broad look across the world sees Susanne Pini conclude that ‘Public Places’ will be the new retail centres. The ‘built environment’ is a significant part of our lives and culture but, retail wise, could it give way to open spaces?

Will public space replace the mall?

Outdoor eating, New York, US

SUSANNE PINI Head of Retail & Mixed Use HDR

hange is upon us. There is a new kind of retail unfolding, more social, more purposeful, with smaller, possibly fewer stores, but more bars and restaurants – and hopefully more bustling public spaces, for a start.

The Great Pause The Great Pause, as some are calling it, has caused us all to slow down, to reassess our values and to reevaluate where and how we live, as we look for novel ways to connect with our communities and nature. People have rediscovered the value of proximity, and the need to be close to one another and the things they need, rather than relying on driving a long distance. Easily accessible public spaces, such as walkable streets and parks became beacons of hope during lockdown, as we adapted to a slower, simpler normal. Many of us have also become more deeply aware of the shops and amenities in our local streets when we suddenly couldn’t access them anymore. We realised how much we miss and appreciate public life and human interactions, such as bumping into each other in parks or cafés, while shopping or walking the dog; in other words, all these unstructured social interactions 60 SCN

that help people feel connected to their community and improve social cohesion.

The pandemic has strengthened the case for making neighbourhoods self-sufficient. With some degree of normality returning, there will be a desire to spend but with the new community minded spirit, consumers will become more mindful about why and what they buy and who they are supporting in the process. We can expect even greater shifts towards buying more locally made products and a return to the smaller stores and makers in the ‘village’.

Studies already show that almost 30% of customers in the UK and US are planning to spend more at their local stores post-lockdown. They are likely to feel more of an allegiance to small independents whom they may have built a relationship with, plus they may feel safer visiting small shops where it could be easier to control numbers and maintain distance in a way that large stores may struggle to do so.

Can we really get back to business as usual? Probably not… While early indications show that it could be good news for local and independent stores, the big question is how will COVID-19 affect already embattled shopping malls? To put it simply, business models reliant on maximum footfall, such as shopping malls, department stores

design Social distancing at Kalaw Market, Myanmar

Dining in the street, Indianapolis, US

SHOPPING CENTRE NEWS 61

Small and flexible spaces

Hole-in-the-wall café in Melbourne and big supermarkets, are at odds with social distancing. In some cases, they are even designed for the opposite effect. Supermarkets intentionally put meat and dairy sections in the back of the store, and design the layouts of other staples so that we are forced to walk by other displays. Except checkouts, everything else about the store is designed to keep us inside, shopping longer. Furthermore, malls are typically built around anchor department stores that occupy multiple floors where all the smaller stores in between rely on those anchors to bring in customers. However, department stores worldwide have been in trouble for years and the pandemic might just be the last straw. A new report by Green Street Advisors predicts more than half of department stores located in US malls will close by the end of 2021 and that could have a domino effect. Of course, the internet has by now separated shopping from buying, hence, more successful shopping centres have been trying to find creative solutions, by not just selling things but also offering services and 'experiences' to draw in shoppers. Alongside the fashion stores there are health providers, gyms, cinemas and a variety of food outlets, but in the world of social distancing, even these are proving problematic in these vast indoor spaces. Indeed, the recent study by management consultants McKinsey, showed that US consumers have less intention to go to the mall than even for booking an international holiday. 62 SCN

Car park dining at Quincy, Massachusetts

Big dreams, small shops Evidently, as a part of the new financial model, we will need to rethink store designs and layouts and create more efficient, smaller floor plans. Instead of conventional design using expensive traditional building techniques, we’ll need to move towards innovative, low-cost solutions that could be upcycled, recycled and re-purposed in a day. Flexible design means that a store layout can be easily modified for different uses, such as click-and-collect, take away windows or outdoor use, and we have all witnessed how crucial that proved during lock-down. There was barely a block, it seems, without a bar handing cocktails, wine and beer through its front door or window, and as the food ecosystem has been shaken to its core by the crisis, we were increasingly queuing in front of our local restaurants-come-groceries to buy milk, eggs and, yes, toilet paper.

Outdoor salon, Canada Smaller retailers can often adapt faster than larger ones. Space costs money and renovations are not free. Even before the fallout from COVID-19, to keep up with changing shopper preferences and habits, many retailers have been already shrinking their footprints and predictions are that rental space requirements may be now reduced even further by 20-40%.

Small bar/café in Kyoto, Japan

Lauriol Plaza, Washington DC

Contactless pickup, Schlow Restaurant, Boston

Social distancing noodles at a restaurant in Germany

The Forgtmenot bar, New York transforms into a grocery store

the smaller spaces, shorter leases and lower rents. They are often specialised in one trade but, as suggested in a recent Inside Retail article, some could be hybrids, based on two complementary businesses sharing overheads. We might start to see spaces with a mix of uses like 'a bike repair and juice bar', 'a dr y cleaner and shoe care', 'custom furniture and hi-fi' that, despite their miniature size, could easily become small social hubs, offering not just goods for sale, but also a whole world around that.

Dining in the street

According to a recent CBRE report, retail spaces, some as small as 18 square metres, have been mushrooming everywhere, as businesses battle high rents, online shopping and a lack of prime space. COPYRIGHT©

These hole-in-a-wall spaces are tiny but their unofficial network is huge. They often don’t offer much choice, nor do they try to beat bigger players. But what they do offer is localism and consistency and it is their relative scale and simplicity that could work in their favour, especially in the post-COVID times. These new micro-retailers benefit from

If there’s one thing that COVID-19 has taught us, it’s how essential bars and restaurants have become to our social lives and their pivotal role in our collective post-pandemic future. People who have been cooped up inside for weeks on end have been yearning to venture out, to reconnect and socialise. Hence, the planning authorities in the cities worldwide have been waiving fees for outdoor dining and shortening the time for applications from a few months SHOPPING CENTRE NEWS 63

Open-air café at Vilnius, Lithuania

to just couple of days to help cafés and restaurants reopen safely, and fast. Businesses with their own parking space or patios were given the green light to spread out their dining services. In urban areas without much private outdoor space, local councils are letting them set up tables on footpaths, streets and public plazas. Even adjacent on-street parking spots are being used for impromptu seating areas and flexible pop-up eateries are set off by planters, fences and traffic cones. Some cities are going a step further. The Lithuanian capital Vilnius has announced plans to turn the whole city into a vast open-air café by giving over much of its public space to restaurants, bars and cafés. With the aim to open up, retain jobs and keep Vilnius alive, the hard-hit businesses will be allowed to set up their tables, free of charge, on the nearby plazas, squares and streets, while still observing physical distancing measures, including restricting the number of customers and spacing tables at least two metres apart. New York has announced a plan for the city’s Open Restaurants program, which allows restaurants and bars to expand their outdoor seating on sidewalks, kerbs, lanes, backyards, patios, plazas, and open streets, which could see roads pedestrianised and converted into large eating areas on nights and weekends. New York City’s revered bar scene has been turned inside out – outdoor drinking has replaced indoor drinking and customers, thirsty not only for an adult beverage but also 64 SCN

for the social experience are occupying the pavements in front of their favourite watering holes, sitting on fire hydrants or chairs provided by the bars. To keep their impromptu street trade safe, pavements are marked with chalk or tape to show how people in line should space themselves safely.

Restaurants and bars are the backbone of New York City’s neighbourhood culture and the mayor declared that this kind of outdoor dining is the new reality and 'is the way forward', different to anything the city has done before. When there is a will there is a way as they say. The permit process was so easy that officials in some cities were expressing regret that the decision did not come sooner, wondering why did it take a pandemic for the authorities to allow people to eat outside.

Public spaces by and for all At this time when there’s a growing consensus that being outdoors is safer than being inside, outdoor public spaces must be a central part of the path for ward; the economy needs to restart and the world wants to get out of the house. Cities from Barcelona to Bogota are being transformed into cycling and walking spaces by enlarging public squares and closing streets off to traffic entirely. The city of Milan has announced

its Strade Aperte plan or 'open streets' plan that will repurpose 35km of roads, converting them into people-friendly streets with wider sidewalks and cycle lanes. Over in Vancouver, footpaths directly next to supermarkets and pharmacies are being widened to help customers social distance more easily. New Zealand also announced national funding for bike lanes and wide sidewalks, while the mayor of London plans to transform parts of the UK capital into one of the largest car free zones in the world. Open streets allow for wider sidewalk areas, making customers feel better about standing in line to access a shop or a café with appropriate physical distancing – but they also make perfect business sense. A well documented 2016 survey of more than 100 cities around the world that maintained multiple pedestrian-only streets found that retail sales increased by 49%, while cities in Austria, Germany and Scandinavian countries had more than 60% increases in sales. Another study done by Transport for London shows that people walking, cycling and using public transport spend 40% more each month than car drivers, with numbers being replicated in studies in Toronto and in New York City. Streets and public places, local high streets in particular, are the physical setting for public life and they should become the setting for every reasonable type of use to allow communities to reopen beyond walking, biking and dining outdoors. Open-air farmers markets provide a most obvious model for how public spaces can serve everyday needs while taking 'lighter, quicker, cheaper' steps to adapt to physical distancing. What is more, with footpaths finally widening up, cities could explore other types of outdoor retailing, pop ups and even some services like laundry pick-up, pet grooming, fitness activities and perhaps even, haircuts and manicures. And as radical as it may seem, many of these trends and ideas aren’t that novel, they just might be new for the locality and the future has finally brought them closer. SCN

Our custom-made planter with seating integration for Westfield Chermside, one of our locally designed and produced products created to enrich the experience of the urban environment. Visit quatrodesign.com.au to view our full range of pot, planter and street furniture products or call us on 02 6672 1190 to discuss your next project.

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29/6/20 2:26 pm

Are food courts a thing of the past? Tony Quinn believes that could be the case. Social distancing will bring about casualties…

o let’s address the elephant in the room. What impact is COVID-19 going to have on retail? Well, plenty is the obvious answer. All I need to do is simply walk down my local strip, Barrenjoey Rd in Newport Beach to see its impact, with all the 'For Lease' signs up in the empty shops. And of course, at the big end of town, the recent announcement from GPT is that they’ve been forced to write down the value of their retail assets by a whopping $476.9 million. That’s effectively a whole centre in that figure!

So where to from here you might ask? I’ll address some thoughts below, gleaned from industry discussion, research and my personal experience. One thing in particular that has brought some focus is the fact that we’ve all been forced, under the threat of fines, to stay at home. In doing so, it’s meant an emphasis has been put on staying local. It’s brought a heartfelt response too, to our local businesses to assist them in staying afloat. Personally, friends and I have been on a bit of a crusade with a conscious effort to support local coffee shops and restaurants.

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What impact is COVID-19 going to have on retail? TONY QUINN Principal Hames Sharley

design

We’ve been going out daily to buy coffee and have ordered takeaway meals at least twice weekly (instead of the usual once a month). The changing world has also brought our focus back to family, as well as the community by the sheer fact you couldn’t visit until recently. A lot of friends have said they’ve missed their 'fix' of seeing their grandchildren, and Zoom is just not the same. All of this entrenches our need and feelings as social beings for community connection more than ever before – there's nothing like taking something away to make you want it more. We have taken these simple pleasures for granted until now…

This point is now one of the keys for retail to provide that community connection and place that’s moved to a whole new level. Reading the press and seeing the number of delivery bikers on the roads has shown a considerable increase in home delivery meals. Fine food restaurants have been forced on to this bandwagon to survive, and I believe now it’s established that it’s here to stay, proving that it doesn’t take much

to change our habits. Being adept at adjusting to market need is paramount to survival.

One thing that the past four months has proven for me is that food is our social glue because the first thing my household wanted to do once restrictions were lifted was to eat out with family and friends. The one thing that home delivery of meals and retail purchases can’t replace though is the experience of connection. It's another key factor that retail centres must focus on, in a bid to bring customers back. This, along with social distancing, is going to have a huge impact and I believe bring about the death of food courts. Elbow to elbow eating is going to put people off for some time, with the risk it may never recover. The big barns of 300 plus seats won’t be able to legally operate for the foreseeable future, with the more likely scenario of smaller clusters of tables in pockets, which was already occurring in some food precincts, but will now be the

more likely scenario of the future, the new normal. While on the topic of food, put your hand up if you’ve gotten into home baking and making? Sales have shown that with the spare time we’ve had at home, we’ve become bakers of sourdough bread, pasta makers and budding pastry chefs. A point made by Jennifer Cook from Customer 360 in a recent SCN webinar was the growing trend of cooking in schools. This trend has swept through Asia for some time and combined with interest in the above and the proliferation of cooking shows on television, it really COPYRIGHT©

was only a matter of time. ABC cooking schools are now in seven countries after starting with one store back in the nineties in Japan. Currently in China, Taiwan, Korea, Singapore, Malaysia, Indonesia and Thailand. They now boast 125 cooking studios in Japan, with 26 overseas, many of which are shopfronts in shopping malls. They certainly tick the food, sense of community and experience boxes. COVID-19 has also now put further emphasis on the whole of local life, of living, working, playing and staying in your community.

Cooking schools are a growing trend

One of The Greater Sydney Commissions objectives is for a 30-minute city whereby people only commute a maximum of 30 minutes from home to their workplace and have an emphasis on walkability. This concept is now even more apparent for our health and wellbeing, putting further focus on mixed-use spaces in order to achieve the outcome. This has been brought into recent focus by the necessity and apparent

success of so many of us having to work from home. As you may have experienced, having to work from home makes it difficult to separate home and work life, if you’re like me and working from the dining table. It isn’t ideal, but it does open up the opportunity on a local scale for co-working spaces. A perfect location would be that empty mini-major space in your local centre, with proximity to ser vices, coffee shops and restaurants. The time not spent in that long commute could be spent browsing the shops. I understand due to the success of working from home, many major city-based companies are now considering satellite offices as a way of looking after their staff. I certainly fit into the categor y with a one hour-commute each way no longer a part of my daily routine, and I have to say I don’t miss it at all. While on mixed-use, an innovative idea I heard recently was a hotel, including hotel school and student accommodation. Students are to live, work and study on the premises and cook and serve clients all in the one place, all sitting atop of a shopping centre. Mixed-use developments aren’t anything new, it’s just that the pandemic has brought them to the fore. The whole health thing is likely to get a kick along with COVID-19 with our awareness of the importance of staying healthy. Already on the radar, with medical centres, day spas, gyms, and massage clinics, centres will be able to tap into our increased desire to stay healthy and well. Some other innovations I’ve recently seen in the media is the use of shopping centre car parks as temporar y music venues and drive-in cinemas while COVID-19 restrictions are in place. With a stage or screen erected at one end, you drive in, park and tune your car's sound system to the event while safely staying in your car and social distancing. I’m sure with exceptional fast food deliver y, it could easily be arranged to have food and drink dropped off to your vehicle as well. Retail has always had to reinvent itself to stay relevant; it’s just now our industry has to be more agile than ever and adept to accepting change. SCN SHOPPING CENTRE NEWS 67

Food courts are likely never to be the same again. What’s the future? The ‘street restaurants’ – those outside shopping centres – have adapted; they’ve embraced take-away, reconfigured their seating areas and shortened their menus… But food courts are different; the challenges are more intense. Find out why...

Tomorrow’s lifestyle centre today:

ood and hospitality’s revival in shopping centres is going to happen, but not if the strategy is simply to wait for customers to come through the door. COVID-19 has compressed the evolution of consumer behaviour from five years to three months. What we would have been planning to do by 2025 has to be done today. Is your shopping centre prepared to capture the opportunities created by the new landscape? Shopping Centres have been hampered because the creed of 'Eat Local' seems to have somehow excluded Shopping Centres from the definition of ‘local’. This seems to us to be a significant and important call to action:

Why are shopping centres not being drawn into the 'Eat and Support Local' campaigns? How has the industry allowed itself to be portrayed (albeit indirectly) as not being 'local'? We are at the beginning of a new future and malls cannot expect to pick up where they left off and, as such, it would be a mistake to look to the lessons from the GFC. At that time, Takeaway Food Services (as the Bureau of Statistics likes to call the QSR sector) never had a month of negative growth, while cafés/restaurants experienced only a slight decline in turnover. The bounce-back was strong because consumer fundamentals were shaken, but not stirred – unlike today.

Many, if not most, people will revert back to their comfortable habits as soon as possible but we should not be lulled into complacency by this. The following example shows why. As I write this (mid-July 2020), footfall data for Westfield Warringah on Sydney’s North Shore was at about 80% to 85% of pre-pandemic levels. This is an excellent recovery result, but let’s take a look at what this means for F&B. If the mall’s F&B strike rate was originally at 30% (three out of ten visitors spent money on F&B,) then to maintain the same number of customers, the strike rate would have to increase to 37.5% (see table below). We should not underestimate the magnitude of change in consumer behaviour necessary to achieve these results. This is especially true in light of the surge in online spending across all sectors of retail. The latest figures show that 11.1% of total retail spending was done online. This is up from 7.1% in March 2020. We would have expected this evolution in online retailing to have taken place over the next several years. Instead, we are dealing with the future now. While all states and territories are

FRANCIS LOUGHRAN Managing Director Future Food

at varying stages of their recovery trajectory, it is critical that all shopping centres, large and small, place a new lens on the expected standards for F&B in their food courts, entertainment precincts, restaurant clusters and standalone F&B retail tenancies. Owners and landlords must ensure that they are seen as the new face of hygiene, cleanliness and compliance to attract customers back to spend, dwell and socialise. Combined with the myriad efforts from food operators, this partnership can maximise operators’ turnover and thus provide sustainable rental income. This means that we must give greater reasons for customers to engage, and

Strike rates need to rise

Source: Future Food

Customer expectations towards F&B have changed because spending on F&B in shopping centres has become more discretionary and less reliable. Shopping centres need to change as well – it’s a 'Blue-Sky Opportunity'. 68 SCN

FOOD FOCUS

m aximising the next normal for food and hospitality to recognise that hygiene and safety have become marketable commodities and drivers of F&B footfall.

Steps to the next normal Jay Reiner, the UK food critic for The Guardian, has said that starting up a kitchen again is easy but that, “Reigniting the buzz in the age of social distancing may prove an awful lot harder”. This is echoed by Justin Hemmes of the Merivale Group and the CEO at Australian Venue Co, Paul Waterson, two of the leading restaurateurs who were at the forefront of the F&B revival. They understood that, while core principles were unchanged, they were starting up new businesses in a new environment, which required a lot of planning and new processes. For shopping centres the key principles are that: A) Revenue is the driving force behind rent, B) F&B is a key component in evolving malls into lifestyle centres and C) F&B is an asset category. F&B has grown as a percentage of turnover (MAT) during the past 20 years and has been the cash cow for increased hours, food and entertainment in a family friendly environment. It is in

the interest of the asset as a whole that F&B gets kick-started and moves beyond the basics. F&B revenue maximisation (and thus rent stabilisation) is subject to a number of interconnected initiatives: 1. Embracing online sales: a. It is important to work with, not against, the impact and the changing habits of consumer behaviour. b. Facilitating ways for centres’ food operators to process delivery orders. If customers don’t want to go to the mall (for whatever reason), it is important to figure out how the mall can go to the customer. 2. Increasing the strike rate by providing a positive experience: a. This is more than just having great food. b. Communicating and marketing clear signals that reassure your customers they are going to be looked after properly by your food operators: menus and ordering app available on centre website, information about whether pre-payment is required and if there is a time allocation (60 / 90 / 120 minutes) per table and all of the distancing and hygiene measures taken by the operator.

The trilogy of success Source: Future Food

3. Getting the shoppers who are cautious about life to come back to their pre-COVID habits: a. While the majority of people are keen to get back to their previous habits, there are significant numbers of customers who won’t or can’t, due to concerns about safety and/or money. Thus the trajectory of the recovery will initially be steep, but will have a very long tail to get back to where we were at the beginning of the year. b. We believe that people will go back and spend if the platform of readiness gives them confidence.

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4. Empowering centre management to demand standards from their retailers: No dirty floors, no un-bussed tables, clean sightlines into tenancies, empty full rubbish bins, lean uniforms, no clutter or possibility of cross contamination and generally upholding professional food and beverage presentation standards at all times. 5. Making poorer operators elevate their standards: a. Revisit the F&B mix: Do we need to retain these operators? Do we replace, or do we refresh? b. Are the food operators relevant to the local market? c. Can the operators be taken on the journey? Are they worth it for the landlord to invest in (time, effort, hygiene, etc.) 6. Getting the critical mass properly balanced: a. Are there enough local and/or independent food operators? b. Is the F&B mix in a particular centre distinguishable from other malls in the portfolio? 7. Landlords taking a holistic view: The totality of the food offer and the environment has overriding messages and planning. a. Each F&B operator at the centre is presented with a uniform code of conduct. This can’t be left to the individual operators but must be driven by centre management. b. Having centre-wide management of pedestrian flows and social distancing. c. Subsidising and encouraging promotions to entice customers to come to the centre. d. Visible Hygiene Officers that enforce all safety measures and are also responsible for wiping down and sanitising public areas.

streets: Individual F&B outlets have been able to create their own vibe and energy. • Food court tenancies lost their ability to effectively service their customers because their seating was eliminated and delivery services were, and are, constrained. • The industry-leading innovations in F&B have been led almost exclusively by non-centre retailers.

operators may have a difficult time in maximising revenue and thus returning to profitability. We have analysed a typical F&B outlet and have calculated the returns. As the chart (top right) shows, this Next Normal does not entail simply cutting rent. The return to pre-COVID profitability for the average F&B operator requires a coordinated response that includes increased centre hygiene and

Minimise to maximise

Source: Future Food

Westfield 2025 Vision

The task ahead We recognise that shopping centres are essentially safe public areas, but that is not enough to win over the significant portion of former customers who are nervous about being out of the house to come back to centres and restart their shopping and eating habits. We are in the Next Normal and this requires delivering a next level of standards in order to provide new customer experiences. Food courts present shopping centre owners with a distinct 'blue-sky opportunity' which requires maximum landlord effort. Operators in the food courts have been more affected by the COVID-19 lockdown than those across the balance of the centre or on the high 70 SCN

This presents a distinct opportunity to reposition F&B in centres as being made up of many locally owned small businesses that are family operated. Individual centres need to connect with the local community and ensure that their properties are not being overlooked, as all consumers are trying to support small business as a way of keeping them afloat during these challenging times. We need to promote our local food heroes in our local centres.

The ROI: principled partnerships prepare proprietors The bottom line is that without these measures and these partnerships, food

coordination of customers along with operator investments in technology and a realignment of labour and menus. Column A reports on the benchmark figures for a food operator pre-COVID. While margins were relatively small, an average operator was able to survive. Column B shows the profitability effects of the 'do-nothing' strategy: Follow regulations and guidelines, but otherwise go about business as usual and hope. Clearly this is not a sustainable path. Just as impor tantly, the economics for an average F&B outlet are such that it may be problematic to get funding for new ventures. This would mean that F&B vacancies would be

Post COVID-19 analysis of costs & profits

Source: Future Food

in considering where food fits into the picture as retail and entertainment come back. Finally, Column E shows how retailers can leverage the Landlord Partnership with investments of their own – contactless ordering, software to aid in procurement and staffing, re-engineering kitchens to facilitate distancing and safety. The Landlord Partnership plays a vital role as, without those measures, food operators would not have the security or the cash flow to invest. The net effect of this coordinated response on the part of landlords and operators is gradual return to profitability, even in the face of distancing regulations and reduced numbers of customers. As more regulations ease and consumer anxiety abates and incomes rise, F&B operators can see a path towards returning to pre-COVID-19 benchmarks. Without this collaboration, we see a much more difficult path to turnover maximisation and therefore sustainable rental revenue.

To summarise, never before have F&B operations had to work as hard on safety and hygiene all the while still remembering that they need to give customers the best experience they can.

significantly harder to fill. Column C shows that a food operator can return to profitability (just) by being proactive with marketing and communication to increase customer flow and thus turnover. However, this is more akin to surviving than thriving. Column D shows the positive effect that landlords can have on the profitability of their food operators by implementing many of the steps that we COPYRIGHT©

have outlined above. It is important to emphasise here that a Landlord Partnership with food operators is about investing in the holistic customer experience. It is about creating and communicating healthy environments. It is about the breaking up of common area seating to create more individual areas that don’t feel like your neighbours are breathing on you. It is about a coordinated effort

We started off by making the claim that the future of five years from now is here already. Before the pandemic, some malls were already thinking about the Next Normal. Westfield, for example saw that its centres would turn into Lifestyle Centres. What we need to incorporate into our strategic thinking and planning is that consumer lifestyles now more closely reflect what would have happened in five years’ time without the pandemic. Without engaging with all customers, not just those first movers eager to get back to the way things were, shopping centres will not be able to offer a lifestyle experience for everyone. The Next Normal in F&B in managed shopping centres requires landlords and operators to work together to create an environment that is not just safe and hygienic, but one that also is seen to be such. There is significant latent demand for shopping centre F&B, but food operators in malls, especially those in food courts, are starting from a position of relative weakness and need a coordinated effort from all stakeholders to regain their premier positions. This is far from an impossible task and we look forward to tackling the challenges ahead. SCN SHOPPING CENTRE NEWS 71

Driven by a shift in consumers’ expectations, diversity and inclusion are becoming increasingly more important for businesses globally. Does it really matter that this is a response to commercial pressure or a higher moral duty? What matters is that the barriers surrounding diversity are broken down and that we change our attitudes and become a truly inclusive society. This shift by businesses is both encouraging and necessary.

trends Diversity and inclusion in retail F

C an one brand really accommodate all of our infinite differences equally?

ed by our belief that retail experiences play a role in defining our broader social interactions, we have been asking ourselves how corporate diversity and inclusion policies translate into the physical retail environment and customer experience. For businesses with a retail presence, how do they deliver inclusive experiences to their customers? There isn't a straightforward answer to such a complicated question. Every business is different and brands are

IAN JOHNSTON Founder & Creative Director Quinine

exclusive by nature. Every brand has its own distinct offer and individual target market, which requires a specific solution. For much of a business' marketing activities, it is totally reasonable that they focus on their own target market. But when it comes to branded physical environments, we believe that companies can only gain by making these as inclusive as reasonably possible. A brand can choose their target market, but they can't choose the customers who arrive at their doors.

Designers, both makers and thinkers, are uniquely positioned to help companies translate complex ideas and corporate policies into the built environments around us.To encourage further discussions, we have identified a number of insights that will help you understand how your retail experiences can become more inclusive – beyond your own target markets. As a starting point, we defined 'diversity' as the mixture of individuals in society; the range of human differences, and ‘inclusion’ as the

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feel part of the same community, rather than having their differences highlighted and held up to define them. In our store design for Canadian telecommunications brand Rogers we designed a round café table that could be used for consultation and payment interactions by both wheelchair users and nonwheelchair users alike. This was central to the store concept. Yet, we were required by the disability regulations to MAC Cosmetics is a global leader in brand inclusiveness practice of providing equal access and opportunities to people who might otherwise be excluded or marginalised.

You must consider all touchpoints

Accessible doesn't mean inclusive When we take a more in-depth look into what is required to comply with the disability regulations, we understand the attention and focus on 'access' but feel further conversations to define 'inclusive' interactions are desperately needed. Inclusion is not necessarily achieved by merely providing access. Real inclusion is achieved when a single design solution allows access to the total scope of differences. An inclusive solution makes those with differences Initiatives to change the store environment for customers sensitive to overstimulation

have an additional 'flip down' table, at the high service counter, specifically for wheelchair users. To us, this is counter to the spirit of inclusion because it makes wheelchair users the 'other' and normalises the able-bodied. When people are treated differently to others, even if it's considered, they may not feel equal or genuinely included.

It’s not just about the physical differences Discussions around inclusion and accessibility mostly focus on our physical differences, and we often forget this is only one aspect. This needs to change. As societies acknowledge diversity in all its shapes and forms, our understanding of the impact the built environment can have COPYRIGHT©

on these differences also needs to evolve. A concept of increasing awareness is 'neurodiversity', a term that normalises the variances of brain functions and behavioural traits in society. We must be more inclusive of these differences when designing a retail experience. The British supermarket chain Morrisons has a nationwide 'Quieter Hour' where the store is adapted to suit the different sensory stimulation of autistic shoppers. During this hour some of the lights are dimmed, there are no announcements made over speakers, and the barcode scanners make no sounds. How would you adapt your environment to be inclusive of autistic customers?

Translating an 'inclusive' brand positioning into retail action is complex. Many retail brands are making great efforts to be diverse and inclusive but are struggling to translate these policies on to the shop floor. When businesses create brands with 'inclusive' positioning, they need to be extra sure that their brand promise is represented throughout the store experience and at each moment of the customer journey.

It's no longer good enough for businesses to say they are inclusive, it’s how they act that matters. When a brand’s marketing claims are reinforced by its in-store actions, they become more authentic to their values, and a deeper customer connection is achieved. Let's consider a global leader in brand inclusiveness, MAC Cosmetics. Inclusion and diversity are integrated SHOPPING CENTRE NEWS 73

trends

Having staff members that customers can relate to, greatly increases the inclusivity of a store explicitly into their brand promise; "all ages, all races, all genders". We admire the high bar they set for themselves, but… during one visit to our local London MAC store, we recognised some opportunities to translate this promise better and create a more inclusive experience across all the physical touchpoints in-store. Some subtle changes to the store environment can easily help bring the 'inclusive' brand promise to the centre of the customer experience. The promotional images displayed in-store featured young women exclusively and the product names ('Prissy Princess', 'Mischief Minx', 'Basic Bitch') are heavily marketed to females. These should better reflect the brand's positioning of “all genders”. And although we found store staff to be exemplary representatives of the brand’s inclusive positioning, and they reflected well the ethnic diversity of their customers, in the store we visited there were no older women nor men working. Should a brand appealing to all genders and ages ensure that both males and females of varying ages are always 74 SCN

A person who enters your store doesn’t necessarily fit your target market

represented in-store? If there is no representation in-store of the brand position in either the promotional imagery or the staff, is the brand position then diminished? We believe that by increasing the diversity in-store through at least one touchpoint the minority consumers will be empowered, without affecting the majority. Would women, being the majority customer base for MAC, be turned off by some representation of men in-store?

Staff diversity is crucial for any retail 'inclusion' strategy Staff diversity is paramount when delivering an inclusive retail environment for customers. It's not reasonable to expect all stores to reflect the diversity of society, but stores should certainly reflect the diversity of their own target market. There is great power in customers seeing themselves reflected in the experience. They want to feel they are understood by the person representing the brand and serving them. Based on their gender, ethnicity or age, an absence of appropriate staff diversity can be a barrier for many

customers. As the population ages, older retail employees will be in demand to reflect the customer profile and meet the needs of older consumers in their stores. We already see this as underutilised in tech-related retail, where having an older staff member can vastly change the inclusivity of the store experience for older customers. We encountered a great example of age-diverse staff recently when visiting London’s Tate Modern museum. Two older women wearing bags displaying 'ASK ME' were helpful to customers of all ages, yet additionally, they were able to convey information through the lens of their age group to their peers. Retail can learn from looking at how other public spaces, like museums, are being staffed.

You cannot prioritise everybody We should expect a brand to be inclusive of their own target market. Granted, this is an easier task for brands with a particular niche target than for brands that have a wide market appeal. Those with a broader target market require their retail environments

Shutting some customers out can be a commercially astute move

Inclusion is not necessarily achieved by merely providing access and experiences to be inclusive of many individual differences in society. Consider how a large national based telecommunications and media company, with the broadest of customer segments, would create an inclusive retail experience. With such a vast market appeal and the need to be inclusive of so many, they run the risk of becoming so generic that nobody COPYRIGHT©

can identify with them anymore. Retail environments and physical experiences that service a broad target market need to take specific care on many levels. When considering store seating, how would a broad appealing brand account for a wide variety of ages – from an older woman to a young father carrying an infant. What about the in-store commercial messages? They would

need to be relevant and legible to the elderly, but equally relatable for younger generations and accessible for the diverse variety of cultures in society. Consider creating an engaging waiting experience that is entirely different for a Gen Z than for a family with three children or an older couple. Designing for those individuals is one thing, but appealing to all of them in a single store is a real challenge. And all are important. Provide a bad waiting experience for a family and they may lose selling a full suite of home services; a bad experience for a Gen Z and they may lose a loyal customer for decades. No matter who, all customers expect to be the top priority. ‘The proof is in the pudding’. ‘Actions speak louder than words’. ‘What you do is more important than what you say’. All of these cannot be truer here. It is no longer good enough for any business to say they are diverse and inclusive, businesses need to act and behave inclusively. They don't just need to be inclusive; they need to translate their corporate 'inclusion' policy (or brand value/market position) into everything they do as a business. Branded retail environments and experiences can play a fundamental role in conveying a brand’s inclusive and diverse values to their customers and this translates directly into customers having a positive perception about the inclusivity and accessibility of your brand.

Businesses and brands will increasingly strive to be more diverse and inclusive, not just because of a larger moral duty to society, but because they will benefit from it, as will their customers. Today there is undeniable evidence showing that when solutions go beyond a business' target market to include the wider diversities within the community, both businesses and society benefit. Inclusive design isn’t just about elevating the experience of those more vulnerable, it’s about actualising the full potential of those in the margins to impact society as others can. It creates shared experiences and often unforeseen innovation that all of society benefits from. When we design considering the margins of society we design for everybody, and all of society prospers. SCN SHOPPING CENTRE NEWS 75

GOO JOBD BS UM H T UP W

EL DON L E

LENDLEASE Simon Van de Velde has been appointed Head of Retail Leasing. With almost 30 years of experience in retail, Simon started his career with Lendlease at Bankstown Square and Erina Fair. More recently, Simon was Senior Vice President, Development Leasing for Westfield USA leading the company's project leasing business. Simon has also held senior roles at AMP Capital and Westfield Australia. Lachlan Dyson has been promoted to Head of Operations for Asset Management. The newly created role brings together Lendlease’s business operations, asset operations, tenancy design and delivery, Pop Up and digital enablement, operating across its commercial, retail and industrial businesses. Lachlan has more than 20 years’ experience in retail and asset management and has been with Lendlease since 2013. Lachlan has also previously held senior roles at Westfield Australia. 76 SCN

SCA PROPERTY Justine Hughes joins as Head of Asset Management at SCA Property Group. Justine brings more than 20 years’ experience in the Australian real estate sector, having worked for companies including Lendlease, Mirvac and AMP Capital leading multi-functional divisions and teams. Justine was most recently with Aveo Retirement Living where she has been advising the business on strategies to combat social isolation for residents impacted by the restrictions due to COVID-19. Ben Manton has joined the Property team as Sustainability and Safety Manager. Ben has been with SCA Property for more than four years, with his most recent position as Assistant Development Manager for the Investment and Developments team. Duncan Mitchell has joined as a Graduate within the Property Team. Duncan will be assisting the team with tracking and controlling capital expenditure as well as other administrative tasks.

Aleisha O’Connor has joined as the Senior Retail Development Manager. Aleisha brings more than 20 years’ experience in the real estate sector, with her expertise mainly in developing major retail, office and residential mixed use projects. Aleisha joins from WINIM, and has previously worked in senior development roles for companies including Lendlease, Stockland and Mirvac. Dominic Monaco has joined as Leasing Executive for the VIC and SA assets. Dominic has extensive experience in retail on both the retailer and landlord side of the relationship along with a strong background in lease negotiations and leasing strategy. Dominic recently joins us from HomeCo, where he was a Leasing Executive. Joe Furfaro has joined as Tenancy Coordinator for assets across WA, SA and QLD. Joe brings more than 18 years’ experience on projects within Australia and parts of Asia across the retail, commercial and industrial sector. Joe recently joins us from AMP Capital, where he was the Operations COPYRIGHT©

Manager for Garden City, Booragoon. Monique Underwood has joined as Leasing Executive for the VIC assets. Monique brings more than seven years’ experience in the real estate sector, previously having worked for various landlords in their Casual Mall Leasing division. Sarah Katru has joined as Tenancy Coordinator for assets across NSW. With a background in Architecture, Sarah has expertise in design and project delivery within the retail, commercial, residential and healthcare sectors. Sarah has previously worked for BDAI as project lead on KFC, Hungry Jack's and Taco Bell fit-outs and new builds.

DEXUS Jemimah Phillott joins Dexus as Marketing Assistant at Willows Shopping Centre, Townsville. Pat Fisher has been appointed Marketing Manager, Retail and Special Projects, managing the MLC Centre, Sydney.

NOW LEASING

The Sutherland Shireâ&#x20AC;&#x2122;s new bayside shopping destination

Pre-committed including Woolworths, Dan Murphyâ&#x20AC;&#x2122;s, Aldi, Childcare, Gym & Medical Centre

Shops remaining, with areas from 902m available

Contact Simon McTigue 0410 510 077 simon@wallaringa.com.au Joshua Bush 0425 315 193 Joshua.Bush@colliers.com

ourbaycentral.com.au This document is supposed for the purpose of providing an impression of Prime Woolooware 4 Pty Ltd (Aoyuan International), and is not intended for any other purpose. All details, images and statements are based on the intention of, and information available to, Aoyuan International as at the time of publication July 2020 and may change due to future circumstances. This document is not legally binding on Aoyuan International. Aoyuan International does not give any warranty in relation to any information contained in this document. Aoyuan International does not accept any liability for loss or damage arising as a result of any reliance on this document or its contents.

STOCKLAND Jodie Bouffler has been appointed to the role of Centre Manager at Stockland Green Hills. Jodie has been the Retail Manager at Green Hills since October 2017, working with the team on the recent development and stabilisation. Prior to joining Stockland, Jodie held a number of roles with GPT over a period of five years, the last being Retail Manager at Charlestown Square.

151 PROPERTY Tasha Adam has been appointed Retail Marketing Consultant for 151 Property’s retail portfolio. Specialising in brand and creating ‘place’, Tasha has worked with some of Sydney’s most iconic retail assets and precincts including Barangaroo, Sydney Opera House, QVB and The Strand Arcade. Most recently, Tasha consulted to developer and landlord, Home Consortium.

Josh Guner has been appointed Senior Leasing Executive at Warrawong Plaza Shopping Centre. Josh has a background in accounting, commercial law and finance, and over 13 years’ experience in retail and large format sectors. He previously worked with Home Consortium, Ashe Morgan, QIC, Ticor Developments and Fenix Real Estate (Supa Centa Portfolio). John Postle was appointed as General Manager – Portfolio Management in

August 2019, focusing on 151 Property’s retail portfolio and operations. John has a wealth of experience in leadership roles having previously worked for Marina Bay Sands, Sands Macau and JLL.

COLLIERS Joshua Bush has been promoted to the role of Head of Retail Project Leasing, NSW.

RECRUITING

Hiring strategies:

henever we witness a major global ‘event’, we react and our behaviours change; and we certainly see these significant events occur more often than they used to. The economic collapse in the early nineties, 911, the GFC and presently, a global pandemic, are all examples of significant global events that have occurred within the past 30 years and have contributed to changing the course of the world on many levels. These events significantly affect our behaviours, our decision-making and the way we do business. As humans, we have an innate ability to become conditioned to new environments and circumstances, adapt and move forward and we’ve done that for thousands of years as a mechanism for survival. Businesses do the same and good businesses and, more significantly, the people who are responsible for leading them, do this to var ying levels of success. Unfortunately for the retail property industry, it finds itself at a cross-roads at a time when the industry could illafford an unanticipated event to weaken its already fragile position.

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In order to successfully adapt to the new challenges we face, we require an increased shift in attitudes towards the type of skill-sets that shopping centre management teams will need to harness to strengthen themselves and operate in this new environment. It’s not about making wholesale changes to personnel, it's more about a cyclical re-collaboration of team structures and skill sets to match the needs of the new landscape.

A re-evaluation of what skills shopping centre management teams have at their disposal is what every progressive business should be doing over the coming weeks and months and acting upon it to capture the best talent available. In any industry, if you don’t move forward after a period of standing still, you go backwards and for plenty of businesses, we’ve now reached that point. If you weren’t already ahead of the curve by a certain degree, then COVID-19 will unfortunately be the

EDDIE REED Director Property Network of Australia

tipping point for moving backwards. Those who act quickest will be the strongest in the long term for sure. For almost ten years I’ve been told by my clients that by and large, candidates ‘must have shopping centre experience’ and while that makes sense to me to a degree, it could also be considered naïve, when assessing the benefits of hiring and introducing skill sets and experience from other industries. This has to change. More forward-thinking companies don’t always stick to this ‘rule’, however, and the first shift I saw away from this attitude was back in 2012 when the then CFSGAM (Vicinity) moved Casual Mall Leasing (CML) out of what had always been part of marketing/administration roles and into individual sales focused positions. The

MOVED OR PROMOTED? EMAIL: EDITORIAL@SHOPPINGCENTRENEWS.COM.AU Robin Brenchley joins the Colliers International Retail Management team as Director, Leasing focused on the NSW portfolio.

Mark Bendinelli joins the Colliers International Retail Management team as Centre Manager for the Victorian portfolio.

Richard Watkins joins the Colliers International Retail Management team as Senior Centre Manager at Sapphire Marketplace NSW in the Woolworths portfolio.

Frank Gadaleta joins the Colliers International Retail Management team as Centre Manager at Cameron Park NSW, in the Woolworths portfolio.

Ross McKay joins Colliers International Retail Management team as Centre Manager at Bendigo Marketplace, VIC.

Liz Chuck has been promoted to the role of Retail Manager across the SLMC Property Australia Portfolio, NSW.

Gabrielle Briggs has been promoted to the role of Associate Director across the Primewest portfolio, NSW. Lizzie Collins has been promoted to the role of Senior Centre Manager at the Cardiff Hub in the SCA portfolio, NSW. Nicola Richards has been promoted to the role of Retail Manager at Glenrose Village. Ashley Loder has been promoted to the role of Associate Director at Glenrose Village, NSW.

Matt O'Garey joins the Colliers International Retail Management team as Retail Manager for Moonee Beach Marketplace and Tamworth Homespace, NSW. Lyn Bui joins the Colliers International Retail Management team as Retail Manager in the Elanor Portfolio, QLD. Tim Baxter joins the Colliers International Retail Management team as Facilities Manager in the Victorian portfolio.

Time to think outside the square? then and current national manager’s hiring policy was to source individuals who had a sales background (over existing CML) and to move the commercialisation of mall space and media opportunities up to the next level and drive income from additional streams using a focused and sales-led approach. Vicinity now has a highly successful national team and it’s no surprise that they recently made the first industry play (as a landlord), by ‘commercialising’ their CML function and are now delivering CML on behalf of another owner (Perron Group), despite the portfolio in WA being operationally managed by JLL. That’s smart! Other leading landlords such as AMP Capital, Lendlease, Mirvac and Westfield have also led the way in recent times through thinking outside the square with hiring strategies within centre management functions, particularly in the marketing and facilities space. In many cases, this group of landlords have demonstrated a willingness to source marketing expertise from outside of the shopping centre industry. There has been an increased focus on driving nonCOPYRIGHT©

discretional spending through improved digital strategies, driving presentation and the customer experience agenda. This has heightened the need to search for new talent from non-traditional sectors such as retail itself, digital agencies or tourism, for example. This year, we've been working on a range of roles where the brief has been to specifically avoid existing shopping centre experience. This has predominantly been within the areas of Casual Leasing, Marketing and Facilities. A recent placement in Darwin was for a Leasing Executive, however a candidate with a strong retail marketing background was successful, with our client leaning on the candidate's ability to first promote the asset to potential retailers using marketing techniques and then position the retail opportunity in an alternative way to secure leases. Since March, that approach has yielded four leasing deals in the middle of a pandemic, but it was this group's willingness to think outside the square that has brought the strong outcomes in this instance.

I believe it’s now time for more businesses to reassess what skills will be required to move the industry forward and strongly consider sourcing new talent from alternative sectors to complement existing centre management teams. The world is a big place and there are a lot of creative people out there who can bring new ideas and solutions to problems from other sectors – and other industries have been doing this for years. Smaller, independent landlords certainly have a bit of catching up to do in this respect – and only time will tell if these organisations will be resilient enough to survive the challenges the industry faces in the post-COVID retail era, without making the necessary changes their national competitors have already started to adopt. SCN SHOPPING CENTRE NEWS 79

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Sandra Stern joins the Colliers International Retail Management team as Retail Manager at the Clemton Park Hub in the SCA portfolio. Chloe Nguyen joins the Colliers International Retail Management team in the role of Property Manager in Woolworths General Properties. Reeta Kellahan joins the Colliers International Retail Management team as Administration Manager at the Greystanes Hub for the SCA portfolio, NSW. Sasha Soltani joins the Colliers International Retail Management team as Administration Manager for Auburn Central, NSW. Jessica Wilkinson joins the Colliers International Retail Management team as Administration Manager across the Sydney Metro IRAPT portfolio. Bethany Zinghini joins the Colliers International Retail Management team as Administration Manager at Burwood Plaza, NSW. Jess Keyes has joined the Colliers International Retail Management team as Administration Manager in the ACT IRAPT Portfolio. Tammy Zander joins the Colliers International Retail Management team as Administration Manager at the Murray Bridge Hub for the SCA portfolio, SA.

JLL Setty Ferdousian has transferred internally to the ISPT account as Regional Marketing Manager for Queensland. Setty has more than 12 years' experience in Digital and Marketing related roles and has been with JLL for five years. Roweena Dargavel has been appointed as the Centre Administrator for Floreat Forum. Roweena joins from Karrinyup Shopping Centre where she held the role of Finance Manager and has previously held roles with AMP Capital and Stockland. Gabriella Cantale commenced as Retail Portfolio Coordinator for the NSW retail team. Gabriella has more than five years’ experience in real estate, from residential real estate and buildings through to leasing in shopping centres. Lloyd Eaton transferred internally as Operations Manager for Bracken Ridge Plaza and Coolum Village. Lloyd has worked in the property industry for more than 40 years with the last 20 years at JLL. Clare Jones joins the Specialty Mall Leasing team as the Casual Leasing

Executive for WA and SA. Clare brings over ten years’ experience in sales and business development, and has most recently worked with Vicinity Centres.

WA & SA IRAPT team. Amelie brings with her a wealth of community knowledge and marketing experience from her time working for the Perron Portfolio.

Theresa Gil commenced as Assistant Property Manager based at the Perth office. Theresa has built a solid foundation of experience across a number of reputable retail assets from her most recent role at Colliers.

Lauren Wallace has commenced as Retail Manager for enex and Forrest Chase shopping centres in Perth. Lauren brings to the team her experience and knowledge from her previous roles as a Leasing Executive and Retail Analyst.

Madison Matta joins the team at The Square Mirrabooka as Assistant Marketing Manager. Madison bring with her several years of experience from previous roles at the Salvation Army and Garden City Booragoon. Kasey Boardman joins the WA IRAPT team as Operations Manager. Kasey has more than ten years’ experience in Facilities Management and Risk across a broad number of businesses including sporting clubs and several retail assets. Stacie Thomson has commenced as Retail Manager at Belmont Forum. Stacie joins from Vicinity Centres where she most recently held the role of Retail Manager for DFO Perth. Amelie de Naeyer has re-joined as the Community Marketing Coordinator for the

Ivan Wan joins the team at Top Ryde City as Assistant Finance Manager. Ivan brings with him more than four years' property finance experience having previously worked for CBRE and JLL in corporate accounting roles. Manika Khanna joins Top Ryde City as Assistant Operations Manager. Manika brings more than 10 years of operations management experience, having worked in roles at Broadway Sydney and Sydney Opera House. Lydia King was promoted as the General Manager of 1 William Street, Brisbane. Having worked at JLL for 17 years, most recently as Head of Commercial Management in QLD, Lydia brings her extensive experience and knowledge to this role. SCN

Launching a new product or service? Talk to us today about how we can help 80 SCN

Shop Safe with AMP Capital AMP Capital is closely monitoring and continues to support measures put in place across Australia to help slow the spread of COVID-19. When we asked customers what their number one concern was about visiting our centres when COVID-19 hit, they unanimously responded ‘health and safety’. So we implemented a comprehensive ‘Shop Safe’ campaign designed to remind customers about physical distancing and safe health practices. And the response has been overwhelmingly positive. It’s just another way we’re focused on delivering exceptional customer service and inspiring retail experiences.

ampcapital.com