The CFS Retail Property Trust Group and the Gandel Group are finalising design development and approvals for a further extension of Melbourne’s Chadstone shopping to create more space for international and luxury retailers.

Michael Gorman, chief investment officer of CFS Retail Property Trust Group, said the project would involve redeveloping the northern end of the centre to create up to 20,000sqm of extra retail for new luxury retailers and international flagship stores, as well as a 10 level 17,000sqm office building, reports the Australian Financial Review.

The trust expects its investment of about $290 million to a show a yield of more than six per cent and an internal rate of return better than 10 per cent.