Work is under way on the $80 million redevelopment of Karalee shopping centre in Ipswich.
Consolidated Properties Group and CVS Lane Capital Partners broke ground on the shopping centre expansion that will see the introduction of a Coles supermarket, 15 specialty shops and generate up to 200 new jobs for the local region.
The existing centre, purchased by Consolidated Properties Group and CVS Lane Capital Partners in 2015 for $26 million, covers about 5300sq m and the expansion will add another 5600sq m of retail space.
Hutchinson Builders will deliver the project on the six-hectare site, located 40 kilometres south-west of Brisbane. The development sits next to an existing 3,500sq m Woolworths-anchored neighbourhood centre which will also be refurbished as part of the project.
Related reading: Work Under Way on New Ipswich Town Centre
CVS Lane Capital Partners managing director Lee Centra says the expansion will meet a retail gap in the area.
“The region is booming with strong population growth above the national average. Average household income is 22.7 per cent above the Brisbane average and 42.3 per cent above the Ipswich average,” Centra said.
“We have an opportunity to meet the retail gap and continue to provide investors with access to a market that is undergoing significant growth.”
Ipswich Mayor Andrew Antoniolli says Ipswich is one of the fastest growing areas in Australia with growth in the construction, health and military sectors.
Queensland has seen a number of high-level investment recently in regional shopping centres, proving a demand in the sector for assets and land.
This is the sixth project that Consolidated Properties Group has developed with investment partner CVS Lane Capital Partners since forming the alliance in 2014. The partnership committed to delivering a pipeline of $400 million in new retail centres in high-growth regions along the eastern seaboard.
Construction is expected to be completed in April 2019.