Victorian governments zoning plan divides retail giants

13/03/13 7:12 AM

Victorian governments zoning plan divides retail giants

PUBLISHED: 12 Feb 2013 PRINT EDITION: 12 Mar 2013 Gift Article: 100 Key points

Nick Lenaghan Victorias Planning Minister Matthew Guy has taken aim at Australias $70 billion shopping centre sector with a proposed wave of reforms. Mr Guy proposes to simplify and deregulate planning zones to drive competition and investment in the flagging retail sector.

Victoria is considering zoning reforms to allow different types of retail into more areas. Bulky goods operators endorse the But the plan has already divided two of the biggest players in the sector, the plan but shopping centre landlords shopping centres owners and the bulky goods operators, which occupy worry it will undermine their mostly outer suburban homemaker centres. investment. Under the proposed zoning changes, supermarkets and smaller retail outlets will be allowed to hang their shingles in! the large suburban homemaker centres, increasing foot traffic and retail!activity. Previously that type of retailing was restricted to the large shopping precincts, based in suburban activity centres, which are controlled by some of the largest listed and unlisted players in Australia, including Westfield, Federation Centres and Lend Lease. The proposed reforms would also allow supermarkets and shops to move into one of the categories of land now zoned industrial. Bulky goods operators retailers of whitegoods, furniture and home entertainment have embraced the proposed reforms with enthusiasm. Executive director of the Bulky Goods Retailers Association Philippa Kelly said the proposals follow recommendations by the Productivity Commission and the Australian Competition and Consumer Commission to deregulate the zoning system. The implementation of these zoning reforms would introduce to the bulky goods precincts in Victoria a more dynamic and more interesting mix, she said. Ms Kelly acknowledged the increased competition could potentially push up rents and land costs in some areas. But that would be offset by expected increases in turnover among bulky goods operators, who would benefit!from increased foot traffic in their centres. Would it be a cost worth paying? Yes, Ms Kelly said. Mr Guy is expected to hand down his response to an expert report into the reforms within weeks. He has already made significant changes to residential zoning and is confident the next raft of reforms will be the envy of other states. What we need to do in this state is create greater competition, to make sure we are freeing up our planning and our business structures in a time when the economy needs a level of regulatory reform, Mr Guy told The Australian Financial Review. But in its submission on the proposals, the Shopping Centre Council of Australia warned the reforms may have the opposite effect, with leading property trusts directing future investment to other states. Council members already have plans to spend $4.5 billion on shopping centre developments in Victoria, said!SCCA deputy executive Angus Nardi. He rejected claims that members were being anti-competitive and protectionist as a nonsense. Investment certainty is definitely a headline issue, he said. Federation Centres chief Steven Sewell, who also chairs the SCCA, said the reforms could have unintended consequences as retailers set up shop beyond the activity centre model that has underpinned retail development. We have the ability to invest judiciously in properties across the country. We will invest most where we are confident of the planning outcomes and the preservation of the value of our investments, he said.
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Victorian governments zoning plan divides retail giants

13/03/13 7:12 AM

Property economist Justin Ganly said concerns over the impact of the reforms were over-stated. The changes could result in something in the order of 20 new supermarkets in Victoria over the next decade, he said. The Australian Financial Review

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Click on the links below to create an alert and receive the latest news as it happens Companies Westfield Group , Federation Cntres , Lend Lease Group People Steven Sewell , Matthew Guy Topics Politics/Victorian Politics, Property - Commercial/Retail Property, Property - Commercial/Property Syndicates, Property - Commercial/Property Leasing, Property - Commercial/Commercial Property, Property - Commercial/Property Trusts

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