GPT announces major redevelopment at Melbourne Central

Document date:  Thu 11 Apr 2002
Published:  Thu 11 Apr 2002 09:55:09
Document No:  261170
Document part:  B
Market Flag:  Y
Classification: 

GPT SPLIT TRUST                               2002-04-11  ASX-SIGNAL-G

HOMEX - Sydney                                                        

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ADDITIONAL INFORMATION: MELBOURNE CENTRAL SHOPPING CENTRE

OVERVIEW:

* Major repositioning will secure market opportunities and long-term
investment returns

* The repositioning will appeal to growth markets and effectively
leverage the benefits of linkages to the railway station and Myer

* The proposal maximises the site's potential for mixed-use
development.

RETAIL PLAN

* Retail GLA remains unchanged, yet the entire retail complex will be
remixed to:

* Replace the Daimaru department store with additional mini-majors
and specialties 

* Increase the number of specialties

* Introduce a new leisure and entertainment precinct on the upper
levels

* Introduce a new lower ground level, which maximizes the benefit of
links to the railway station.

Note: The office development is subject to appropriate
pre-commitments and final approvals.

LETTABLE AREA

TENANT TYPE*                 EXISTING**            PROPOSED
Majors, Mini-majors           36,765                18,593
Large Specialties              1,555                 7,512
Small Specialties             15,304                20,350
Non Retail                     5,616                12,588
TOTAL                         59,240                59,043

* Definitions: 

Majors/Mini-Majors  represent tenancies exceeding 1,000sqm
Large Specialties  represent tenancies 400sqm to 1,000sqm
Non Retail  represent non sales reporting retailers, office, travel
and tattslotto

** As at January 2002

NUMBER OF TENANCIES

TENANT TYPE
Majors, Mini-majors                2                    13
Large Specialties                  3                    14
Small Specialties                153                   205
Non Retail                        20*                   30**
Total                            178                   262

* Includes 12 ATMs
** Includes 20 ATMs

PROJECT COMMERCE

ASSUMPTIONS

The works will be part of a staged program, which is scheduled to
commence in late 2002 and be complete at the end of 2004.

The underpinning of the centre's income and the funding of abatements
during the development will come from the Daimaru surrender payment
and is excluded from project outlay.

KEY INDICATORS*

Incremental Development Cost   $195.0m
Incremental Net Income**        $16.5m
Initial Yield (Year 1)***         8.5%
Centre IRR (post completion)       11%+

* Based on December 2001 asset plan, which assumes Daimaru remain
** Includes $2m residual from Daimaru surrender payment
*** Year 1 is calender year to December 2005