By ANNE GIBSON
Listed property investor National Property Trust has announced plans to create one of the largest shopping malls in New Zealand with the redevelopment of its Christchurch centre.
Eastgate Shopping Centre in Linwood will be expanded from a net lettable area of only 9742 sq m to 30,500 sq m - only slightly smaller than New Zealand's largest shopping mall, St Lukes in Auckland, at 33,530 sq m.
The trust plans to spend $29 million on Eastgate and its executive chairman, Mr Paul Dallimore, said most of the cost would be covered by the trust's capital notes offer, which had raised $25 million. The trust will fund the rest from borrowings.
"Although the estimated construction cost of the redevelopment is $29 million, associated land acquisitions, leasing fees, marketing and financing costs will bring the total redevelopment value to around $36 million and the overall completed value of the centre to more than $60 million," Mr Dallimore said.
Work at Eastgate will start on January 7, he said.
The Warehouse store adjacent to Eastgate is the largest in New Zealand by floor area, Mr Dallimore said, but this store would be integrated into the overall retail complex as part of the redevelopment.
The work would take 15 months. Arrow International will provide construction management.
The mall will have major anchor tenants as well as 68 speciality stores when it is expanded. Anne Gibson
National Property Trust
By ANNE GIBSON