Mirvac has confirmed its commitment to reinstate a retail offering on the site of the flood-ravaged Toombul Shopping Centre in Brisbane’s inner north.
Mirvac spent about $233 million to buy the site in 2016 and outlaid a further $35 million for upgrades in 2019 before floodwaters swept through the centre in February this year.
But the developer’s 2022 annual report showed the abandoned shopping centre was worth just a fraction of what it was, now valued about $90 million.
More than 100 retail tenancies were torn up in May this year as Mirvac grappled with what to do with the site.
It could well be an opportunity to reimagine the site with residential and commercial components, similar to the evolutions of other shopping centres around Australia, including Vicinity Centres’ Box Hill proposed development.
Vicinity is ramping up its $2.9-billion development pipeline as it looks to unlock the 1.5 million sq m of developable land across its 60 suburban malls.
Speaking at the Property Council Queensland breakfast on the retail sector this week, Lendlease general manager of operations for retail development Marnie Devereux said retail was constantly evolving with a focus on user experience.
“Today, consumers make choices on where to shop, play and stay based on a retail offering that aligns with their ever-changing needs,” Devereux said.
“We’re exploring urban growth opportunities across the Lendlease managed portfolio, including Sunshine Plaza in Queensland.
“These urban growth centres are traditional retail cores on large landholdings. They offer opportunities to introduce mixed-use, predominantly residential and commercial, and they offer benefits in doing so.
“Particularly when sites are centrally located, have great transport links, have low site utilisation, have surrounding amenities, and beneficial planning fundamentals always help.”
The Brisbane City Council has suggested that a portion of the Toombul lower carpark could be returned to parkland to help mitigate ongoing flood risks to the site as Mirvac undertakes consultation on what the new Toombul Shopping Centre should comprise.
The Urban Developer believes Mirvac intends to announce plans for the shopping centre site late this year.
In May this year it announced the shopping centre was beyond repair due to flood damage and mould but Mirvac rejected claims it had planned to raze the centre and replace it with high-density residential buildings.
What is apparent however is that new plans for the site will need to include flood-resilience measures following the Bureau of Meteorology’s confirmation of a third La Nina weather pattern, which is associated with increased rainfall.
Devereux said shopping centres no longer needed their land banks for expansion as they were no longer undergoing large-scale extensions.
“We are strategically reconfiguring existing built form, making it work harder,” she said.
“Being flexible and adaptive and agile in moves towards change, and responses to change, are going to be really critical.”
