Shopping centre owner Vicinity has doubled down on its exposure to the luxury retail market by securing an almost-half stake in Chatswood Chase for $307 million.
The ASX listed company now has full control, after buying back the 49 per cent share it sold to Singapore’s sovereign wealth group GIC in 2017.
Vicinity will now bear the full cost of renovations to the complex, slated to begin in 2024 and valued at over $200 million.
Vicinity, which also co-owns the trophy $6.65-billion Chadstone Shopping Centre in Melbourne, is now up for the entire cost of the Chatswood redevelopment project, estimated at more than $200 million.
Chatswood Chase has a book value of $670-million but is projected to hit the $1.5 billion mark after a 2024 revamp.
Once renovations are completed, the complex is set to be worth $1.5 billion.
Anchored to Coles, David Jones and Kmart, the centre has a gross area of 64,465 square metres and boasts 10 million consumer visits each year.
There are also 2,434 car parks.
Chatswood Chase opened in 1983 and fast became a shopping metropolis for Sydney’s north shore.
First planned in 1980, Chatswood Chase was the first luxury shopping destination on the north shore when it finally opened to excited crowds in March 1983.
At the time, it was the only complex in Australia with two department stores, a supermarket and a discount retailer.