The $600 million South City Square urban regeneration project in Woolloongabba, secured Woolworths and Reading Entertainment as anchor tenants, with both retailers signing 15-year leases in response to the significant retail demand south of the river.
The deals represented a substantial milestone for joint venture partners Pellicano and Perri Projects, who integrated a 13,000 square metre retail component into the project to create a new retail and lifestyle destination in Woolloongabba.
$600 Million South City Square To Rise In Woolloongabba]The emerging suburb of Woolloongabba is located just 2km from the Brisbane CBD and is easily accessible to the surrounding area.
Property research firm Urbis forecasted the Woolloongabba catchment’s population to grow to over 33,000 residents by 2036, representing a 50 per cent increase from the current population of approximately 22,000.
“The strong interest from high profile tenants, including nationally renowned Woolworths Group and the internationally recognised Reading Entertainment, has reaffirmed our belief that South City Square will be the centre of Woolloongabba’s transformation into a dynamic retail and lifestyle precinct,” Pellicano Development Operations Manager Michael Kent said.
“When creating the vision for South City Square, Pellicano and Perri Projects recognised the strong market demand.
"We sought to create a project that integrated premium retail and hospitality offerings with the quality residential offering, extensive civic uses and public space, to build this new concentrated activity centre for Brisbane.”
Location IQ has reported that the current retail spend in the main trade area in Woolloongabba is estimated at over $358 million per annum, and is projected to more than triple in size, increasing to $1.08 billion per annum over the period to 2031.
Woolworths’ Regional Property Manager, Phillip Peel, said the company was thrilled to secure one of the key retail tenancies in the South City Square development, as the growing population indicated clear demand for a full-line supermarket.
Alongside the great shopping experience at Woolworths, supermarket customers will be able to take advantage of Woolworths’ Click and Collect service - where groceries can be ordered online and picked up at a convenient time and location.
South City Square: A Discussion On Large-Scale Projects And Urban Regeneration]Reading Entertainment, a wholly owned subsidiary of the US listed Reading International, also saw the strong opportunity in the project, jumping on the chance to operate the cinema tenancy which will offer a world class dine-in cinema experience. The cinemas will range from smaller, boutique theatres to a large-screen format theatre, and will be situated within the development’s double-story commercial podium.
South City Square’s retail offering was designed over multiple levels, with Woolworths situated on the lower ground It will also house a gourmet market hall, fitness centre, and smaller cafes and restaurants.
“Woolworths and Reading Entertainment will underpin our retail offering and will serve as an anchor drawcard for other supporting tenancies. We are proud to have secured these two premium retailers as they will set the standard for the precinct,” Mr Kent said.