Stockland Green Hills unveils second stage of its $412m redevelopment
Stockland yesterday reported a lift in full-year net profits by more than a third, but expects growth to moderate the 2018 financial year partly due to rising electricity costs.
The residential and commercial property developer’s net profit for the 12 months to June 30 of $1.2 billion was up 34.4 per cent on the same time last year, while revenue from ordinary activities climbed 17.9 per cent to $2.7 billion.
Chief executive Mark Steinert says the residential and retirement living parts of the business achieved record results, while the commercial property division performed well despite challenging conditions in the retail market.
He expects healthy property prices on in Australia’s east coast to continue.
“While current regulatory settings are likely to lead to some moderation in growth rates for residential property prices, we continue to expect an elongated cycle for the east coast markets,” Steinert said.
Stockland’s funds from operations (FFO) improved 8.5 per cent to $802 million in the 2017 financial year but growth is expected to slow to between five and 6.5 per cent over 2018, partly due to rising electricity prices.
“We expect FY18 FFO growth to be slightly lower than FY17, primarily due to non Sydney office let-up assumptions, higher commercial property outgoings, particularly electricity prices, and lower retirement living development profit reflecting project timing,” Steinert said.
Stockland settled 6,604 lots in 2017, with more than half of net deposits coming from first-home buyers.
It expects to settle more than 6,000 lots again in FY18, including around 350 medium density homes.
Meanwhile, Stockland recently unveiled the second section of its $412 million redevelopment at Green Hills and started ‘topping out’ for the centre’s additional rooftop car parking spaces.
Stockland and construction partner Multiplex held a Topping Out event on the Stockland Green Hills rooftop to celebrate the opening of the new section of mall featuring new and returning retailers and starting on the 350 additional rooftop car parking spaces.
The second phase of the centre’s redevelopment features approximately 1,450sqm of new floor space comprising of 13 new and returning retailers including Bed Bath N Table, Habitania, Spendless Shoes, Laser Clinics Australia, Darrell Lea Kards and Kandy, Price Attack and Lowes.
Next month, Stockland announced it will also deliver new premium bathrooms, a parents’ room with private feeding rooms, and a play area for the kids. Disability amenities including an adult change room with an adjustable changing table and ceiling hoist will also open in September to assist carers and people with disability.
In November, the centre will open a dedicated Quiet Room designed to create a safe place for parents, carers and children with Autism Spectrum Disorder (ASD).
Upon completion in mid 2018, the centre will more than double in size to around 74,000sqm and will feature the first new look David Jones department store in the Hunter, a new Target discount department store, a new 900 seat Hoyts cinema and around 220 tenancies with a vibrant new dining and entertainment precinct that will be the biggest and best in the region.
Tim Beattie, general manager of Design and Development at Stockland, said the redevelopment continues to make significant progress and they are on track to generate more than 2,285 jobs, including 1,350 construction jobs, 1,250 direct full time jobs in retail, customer service and hospitality, and some 1,200 flow-on jobs for local suppliers.
“Stockland Green Hills has been a part of our growing community for many decades and it is a pleasure to see the project progressing with the official unveiling of Stage 2,” said Mayor Peter Blackmore OAM, Maitland City Council, during the Topping Out event.
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