The first Woolworths-based shopping centre in Australia to implement a 60Kw solar panel system.
Woolworths had leased the whole of the site under a nett lease since 1971. Under the lease, Woolworths had been responsible for upkeep, upgrade and outgoings. Internally, the building was upgraded twice since 1988, resulting in significant improvements in turnover and rental. To some extent, external capital works were neglected, leaving the building façade, common areas, landscaping and car park in need of attention.
As the Woolworths lease was due to expire on the 31st December 2011 with only one remaining ten year option on similar terms, the risk was that about 90% of the income of the investment was attributable to turnover rent. Should a competing supermarket be developed within the catchment area then there would be a material impact on the turnover rent going forward.
Accordingly, Pace Property negotiated an upgrade package which would see Woolworths increase their base rent significantly, perform a major internal upgrade at their expense, and give the Centre a much needed face lift, subject to final Woolworths Board approval of the scheme.
- Induce Woolworths to commit to a new 20 year lease with a high base rent;
- Upgrade exterior of Centre to ensure Woolworths commits to a major internal upgrade;
- Woolworths to increase their trading floor from 2,600 sq.m. to 3,200 sq.m.
- Graduate a measured transition from the current Nett lease to its modern equivalent;
- Obtain a BWS commitment to the site on market terms and conditions at the time;
- Build Stage 1 specialty shops to support Woolworths.
The Woolworths Centre upgrade was completed in early 2011, with the addition of a 60 Kw commercial solar system being installed on the roof making this centre the first Woolworths based shopping centre in Australia to have such a system. Campbell Newman (Brisbane Mayor at the time) and Greg Hunt (Federal Minister for Climate Change) were part of the opening day celebrations.
Pace Property also negotiated the leases for a number of smaller retailers who have entered a brand new component of the complex including Subway, Brumby’s, Nandos, BWS Liquor and a café, sushi restaurant and dentist.