Retail centre Pavilions Palm Beach is set to double in size as construction on its $60 million redevelopment has officially commenced.
Hutchinson Builders will build the new 3,700sq m supermarket to relocate Coles and the additional basement car park, before revitalising the existing centre.
Consolidated Properties Group and CVS Lane Capital Partners acquired the beachside centre as a joint purchase in late 2017.
Consolidated Properties Group chairman Don O’Rorke said that the Pavilions Palm Beach enlargement would be partially funded by the proceeds made from selling Casuarina Village last year.
The plan is to create a “modern urbane mall” with a full-line supermarket, additional basement car park and a new array of specialty stores.
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The vacant land was originally pegged for stage two of Pavilions which was supposed to start in 2010 with plans to include 90 apartments. However, the start was abandoned in the wake of slow sales of stage one apartments.
CVS Lane Capital Partners managing director Lee Centra said the focus for the retail partnership is on the development and ownership of neighbourhood centres in high-growth regions along the eastern seaboard.
"Pavilions was an attractive opportunity because the Palm Beach area is expected to continue to experience solid growth,” Centra said.
“It gives investors access to a market that is undergoing significant growth, with the local population tipped to jump from 14,000 to more than 22,000 by 2036.”
“Palm Beach is emerging as the Gold Coast’s new foodie hub and this injection of new retail and restaurants supports what the resident population and visitors are looking for – a new, convenient shopping destination,” O’Rorke said.
Construction is due for completion in early 2019.