Shop Heart Revival
Newcastle Herald
Thursday August 16, 2007
A $500 MILLION shopping mecca in the heart of Newcastle would create more than 3000 direct jobs and generate more than $300 million a year in local expenditure, preliminary economic estimates reveal.
When the effect is measured in flow-on terms, the centre would create more than 5000 full-time jobs in the region's broader economy.While no one in Newcastle's central business district could see it yesterday, they could sense an extra spring in the old city's step after The Herald's revelations that a massive urban redevelopment appears certain to proceed. Concept plans released by retail giant General Property Trust (GPT) are aimed at resurrecting the city as the Hunter's retail and social capital with a shopping and leisure hub stretching almost the full length of Hunter Street Mall. All the properties required for the development have been acquired by GPT, or are the subject of purchase agreements.In further developments yesterday, The Herald was able to confirm that Myer and David Jones are in advanced discussions with GPT and are both likely to commit to opening stores in the new centre. Senior industry sources tipped that the deals would be completed next month, aligning with the time frames released by GPT yesterday.While David Jones has indicated its preference to relocate its Hunter Street store to a new and modern city building, a Myer spokeswoman was more guarded."We can say that we are actively growing our store portfolio," she said. "Our aim is to have 75 stores nationally, and we now have 66 [operating and announced]. We're actively out there but I can't reveal anything definitive about [plans for Newcastle]." The full economic impact of the new plan is being assessed for GPT and will be included in the company's development application next year, but modelling prepared by the University of Newcastle for GPT's Charlestown Square redevelopment shows that Newcastle would be resurrected as the Hunter's retail and economic powerhouse. Based on those estimates, the Newcastle development would create about 2500 full-time retail jobs, although some of those would replace the 800 that exist on the site. More than two-thirds of construction expenditure is likely to be spent locally, with a further 500 jobs created during the construction phase.When the figures are applied to the university's economic multiplier models, the project is tipped to have a $308 million impact on local employment through the creation of 5040 indirect, full-time jobs.GPT also estimates that expenditure through the centre would top $300 million annually.GPT continued a series of briefings throughout the city yesterday.
© 2007 Newcastle Herald