Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA

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Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Tonsley Urban Renewal Project
Assessment of retail development potential

                           September 2016

                                     DRAFT
Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
MacroPlan Dimasi

MELBOURNE                                  SYDNEY
Level 16                                   Level 6
330 Collins Street                         39 Martin Place
Melbourne VIC 3000                         Sydney NSW 2000
(03) 9600 0500                             (02) 9221 5211
BRISBANE                                   GOLD COAST
Level 15                                   Level 2
111 Eagle Street                           89 -91 Surf Parade
Brisbane QLD 4000                          Broadbeach QLD 4218
(07) 3221 8166                             (07) 3221 8166
ADELAIDE                                   PERTH
Ground Floor                               Level 1
89 King William Street                     89 St Georges Terrace
Adelaide SA 5000                           Perth WA 6000
(08) 8221 6332                             (08) 9225 7200

Prepared for: Renewal SA

MacroPlan Dimasi staff responsible for this report:

Tony Dimasi, Managing Director – Retail
Ziggy Gelman, Consultant – Retail
Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Table of contents

Executive summary                                               i

Introduction                                                   iv

Section 1:     Site location and context                        1

      1.1    Site location                                      1

      1.2    Tonsley masterplan                                 4

      1.3    Surrounding urban context                          7

Section 2:     Trade area analysis                              9

      2.1    Trade area definition                              9

      2.2    Resident trade area                               10

      2.3    Resident trade area population                    13

      2.4    Socio-demographic profile                         15

      2.5    Resident trade area retail expenditure capacity   18

      2.6    On-site workforce and student numbers             22

Section 3:     Competition                                     23

Section 4:     Comparable projects                             25

Section 5:     Section title                                   32
Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Executive summary

 The Tonsley urban renewal project is the South Australian Government’s initiative to

   redevelop a 61-hectare site, formerly occupied by Mitsubishi Motors as a manufacturing
   plant, located at Clovelly Park in southern Adelaide. The redevelopment is both a major
   economic initiative as well as a significant urban renewal project.

 The Tonsley masterplan sets a vision for a sustainable development to be built around

   innovation, research and high value manufacturing. Implementation of the masterplan
   will deliver an integrated mixed-use employment precinct, which will contain commercial,
   residential, education and retail elements.

 A key objective for Tonsley is that it becomes a magnet for smart, innovative businesses,

   able to take advantage of the mix of cutting edge innovation and smart manufacturing
   uses planned to be provided on-site, as well as education, residential and supporting
   retail uses.

 The main retail component will be accommodated on the currently vacant carpark area

   situated to the immediate west of the MAB. At its northern edge the site will front the
   extension of Alawoona Avenue into the Tonsley site, which in turn provides direct
   accessibility to the adjoining suburb of Mitchell Park to the west. In addition, a planned
   north-south road will run adjacent to the site’s western boundary, in due course
   providing access and linkages to the suburb of Clovelly Park to the immediate north of
   Tonsley.

 The retail facilities at Tonsley will be able to serve an available resident trade area, having

   regard to the site on which the Tonsley retail centre will be accommodated, and the
   surrounding urban area, including the locations of existing retail facilities in the
   surrounding suburbs.

 In addition, the retail facilities at Tonsley will also play another important role, namely

   servicing the needs of the on-site population, which will include the additional resident

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Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Executive summary

   population to be accommodated within the Tonsley masterplan area, as well as the day
   time worker, student and visitor populations on the Tonsley site.

 There is at present a substantial resident population available to be served by the retail

   facilities at Tonsley – over and above the daily on site population. The largest, and by far
   most important, resident trade area sector is the primary sector, and that sector
   accommodates the bulk of the currently available resident population within the main
   trade area, with an estimated 6,400 residents at 2016. This factor alone provides very
   substantial market support for delivery of a new retail centre at Tonsley, although
   ensuring easy accessibility of the subject site for primary trade area residents will be an
   important factor that will contribute to the trading success of that centre.

 In addition to the floorspace that will be supportable by the main trade area population,

   additional demand will come from the on-site daily population, which includes workers
   and students.

 The potential for the centre will also be augmented, to a small degree, by additional

   business that will be attracted from beyond the main trade area, e.g. from residents of
   other, nearby, suburbs and from visitor to Tonsley.

 In regards to all the above, our recommendations as to the scale and mix for the retail

   facilities at Tonsley are detailed as follows:

   - First,   we     consider    that   a   full    scale   supermarket,       in    the      order        of
      3,200 sq.m – 3,500 sq.m, should be the anchor tenant.

   - In addition to the supermarket, a limited number of fresh food specialty stores,

      including a bakery and potentially a butcher, a seafood operator, and fresh produce
      specialist, to supplement the FLG offer.

   - We further recommend a provision in the range of 1,200 – 1,500 sq.m of floorspace to

      be directed to food catering, comprising take-away foodstores, cafes, and a small
      number of casual restaurants.

   - While there will be some demand for household goods floorspace, most of that

      demand would typically be met, in a centre of this scale and nature, by the

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Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Executive summary

     supermarket anchor, through its general merchandise offer including items such as
     cutlery and crockery, household linen, and laundry items, etc.

  - The Leisure Retail category and the General Retail category can support a number of

     tenants such as newsagency, pharmacy and potentially a mobile phone outlet.

  - Retail services can include hairdressers, optometrist, repair kiosk (such as Mr Minit),

     and drycleaning.

  - Finally, in addition to the retail facilities, various non-retail uses can add further to the

     total centre floorspace. Such non-retail uses can include fitness centre, medical centre,
     real estate agents, travel agencies and potentially one or two banks.

 In terms of timing, we consider such a centre will be supportable once the road

  infrastructure on-site has been delivered and the on-site residential development is
  under way, i.e. within the next few years.

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Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Introduction

The Tonsley urban renewal project is the South Australian Government’s initiative to
redevelop a 61-hectare site, formerly occupied by Mitsubishi Motors as a manufacturing
plant, located at Clovelly Park in southern Adelaide. The redevelopment is both a major
economic initiative as well as a significant urban renewal project.

The Tonsley masterplan sets a vision for a sustainable development to be built around
innovation, research and high value manufacturing. Implementation of the masterplan will
deliver an integrated mixed-use employment precinct, which will contain commercial,
residential, education and retail elements.

This report presents an independent assessment of the potential for retail development as
part of the Tonsley project. The report is structured as follows:

 Section 1 details the location of the Tonsley site, and also the surrounding local and

   regional contexts. The Tonsley masterplan is also outlined.

 Section 2 presents a trade area analysis, first identifying the relevant trade area for

   consideration for the retail facilities to be provided at Tonsley, and then providing
   estimates of relevant trade area population levels, including residents and workers, as
   well as students. The retail expenditure capacities for each of these potential customer
   segments are then estimated, and projected for future years, as the Tonsley project is
   implemented.

 Section 3 describes the competitive environment within which the retail facilities to be

   provided at Tonsley will operate. The relevance of that competitive environment, and the
   extent to which it impacts on the future potential for retail development at Tonsley, are
   then also considered.

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Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Introduction

 Section 4 presents relevant information for a number of comparable projects, from which

   learnings can be drawn in regard to the optimal mix of retail facilities to be provided at
   Tonsley.

 Section 5 sets out our recommendations as to the retail development potential for

   Tonsley, having regard to all of the above. The quantum of retail floorspace, as well as its
   indicative mix, recommended for Tonsley are detailed, together with estimates of sales
   potential and rental potential from that mix of retail uses.

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Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Section 1: Site location and context

1.1   Site location

The Tonsley urban renewal initiative is a partnership between two leading economic
agencies of the Government of South Australia – Renewal SA and the Department of State
Development.

Map 1.1 shows the location of the Tonsley site, and the surrounding regional context,
throughout the southern Adelaide region. Map 1.2 highlights the various elements of the
Tonsley redevelopment site, and the surrounding local context.

Consistent with the Department of State Development’s role in attracting business
investment and supporting employment growth, Tonsley is proposed to be the focal point of
the State Government’s effort to transform South Australia’s manufacturing sector and build
world-class industry capabilities. Consistent with Renewal SA’s charter to develop accessible
and connected places, where people can live, work and play, the Tonsley redevelopment will
deliver a vibrant, sustainable mixed-use precinct.

A key objective for Tonsley is that it becomes a magnet for smart, innovative businesses, able
to take advantage of the mix of cutting edge innovation and smart manufacturing uses
planned to be provided on-site, as well as education, residential and supporting retail uses.

Tonsley’s development as a ‘smart industry’ precinct is underpinned by the direct
participation of TAFE SA and Flinders University, both of which have campus representation
at Tonsley. TAFE SA has established its new Sustainable Industries Education Centre (SIEC),
where more than 6,000 students each year will be trained in sustainable building and
construction occupations. Flinders University has established its School of Computer Science,
Engineering and Mathematics (CSEM) at Tonsley, with a new facility which opened in
February 2015. Flinders University’s main campus is situated approximately 2 km to the
south of Tonsley, and the University is committed to the future development of an
integrated precinct which extends from the University’s main campus to the Tonsley site.

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Tonsley Urban Renewal Project - Assessment of retail development potential DRAFT - Renewal SA
Map 1.1: Tonsley
Regional context
Map 1.2: Tonsley redevelopment site
Local context
Section 1: Site location and context

Tonsley is a critical link in the Government of South Australia’s activity to build the state’s
economy. The target sectors for attraction to Tonsley are:

 Mining and resources;

 Clean technologies and renewable energies;

 Health & medical technologies; and

 Sustainable construction.

These sectors form the basis of plans to develop Tonsley as a high value manufacturing and
industry hub, supported by education and innovation.

1.2   Tonsley masterplan
The Tonsley masterplan sets a vision for sustainable development built on innovation,
research and high value manufacturing. The centrepiece of the masterplan vision is the
adaptive re-use of the former Main Assembly Building (MAB) of Mitsubishi, as a
demonstration of the sustainability initiatives and collaborative environment.

The attached Figure 1.1 shows the Tonsley masterplan, while Figure 1.2 details the
development status of the various sites which make-up the masterplan, as at May 2016.

The key elements of the completed project are estimated to be as follows:

 More than 6,000 high valued jobs to be accommodated on site.

 More than 1,200 residents to be accommodated in the new residential precinct which will

   occupy the north-western portion of the site, and which will be developed by Peet/CIC.

 An estimated 8,500 students on site, in the TAFE SA and Flinders University buildings.

 An estimated 110,000 sq.m of commercial land use.

 An estimated 130,000 sq.m of high value manufacturing land use.

 Approximately 7,500 sq.m of retail floorspace.

These various elements of Tonsley will be developed utilising best practice design and world
leading social, economic and environmental benchmarks. A network of public spaces that
promote health and wellbeing through physical recreation and outdoor living will be an
important element of the project. These public spaces will be linked through walking and
cycling paths for local residents, students and workers.

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Figure 1.1: Tonsley Masterplan
Figure 1.2: Tonsley – Development Status
Section 1: Site location and context

The main retail component will be accommodated on the currently vacant carpark area
situated to the immediate west of the MAB. At its northern edge the site will front the
extension of Alawoona Avenue into the Tonsley site, which in turn provides direct
accessibility to the adjoining suburb of Mitchell Park to the west. In addition, a planned
north-south road will run adjacent to the site’s western boundary, in due course providing
access and linkages to the suburb of Clovelly Park to the immediate north of Tonsley.

1.3   Surrounding urban context

The attached Map 1.3 shows the surrounding urban context for the Tonsley site, highlighting
a number of significant transport infrastructure projects currently underway or planned, and
which have enormous implications for the accessibility and eventual integration of the
Tonsley development.

The most significant of these is the South Road Darlington upgrade, which is a $620 million
infrastructure project by the Government of South Australia to deliver a lowered non-stop
motorway that will pass underneath Flinders Drive, Sturt Road, Mimosa Terrace/Sutton
Road, Ayliffes Road and Tonsley Boulevard. Direct linkages above the lowered freeway will
be provided between the Tonsley site and its surrounding environment at Tonsley Boulevard,
Mimosa Terrace and Flinders Drive.

Construction of the Darlington project is currently well underway, and is expected to be
completed by the end of 2018. Once the project is completed the linkage between the
Flinders University main campus and Tonsley will be greatly improved, as will be the linkage
between the Tonsley site and the various residential areas to the south of the Southern
Express Way, and to the east of South Road.

In addition and as also shown on Map 1.3, the Tonsley railway line is proposed to be
extended from its current terminus at Tonsley station to Flinders University, with an
additional station to be built adjacent to the Flinders Medical Centre. That extension in turn
will also provide a much stronger public transport linkage between the Flinders University
campus and Tonsley.

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Map 1.3: Tonsley redevelopment site
Surrounding urban context
Section 2: Trade area analysis

This section of the report examines the trade area which the proposed retail facilities at
Tonsley will be able to serve, including estimates of population levels and retail expenditure
capacity for those populations.

2.1    Trade area definition

The extent of the trade area or catchment that is served by any shopping centre, or retail
facility, is shaped by the interplay of a number of critical factors. These factors include:

 i.    The relative attraction of the retail facility or centre, in comparison with alternative
       competitive retail facilities. The factors that determine the strength and attraction of
       any particular centre are primarily its scale and composition (in particular the major
       trader or traders that anchor the centre); its layout and ambience; and carparking,
       including access and ease of use.

ii.    The proximity and attractiveness of competitive retail tenants, or centres. The
       locations, compositions, quality and scale of competitive retail facilities all serve to
       define the extent of the trade area which a shopping centre or retail facility is
       effectively able to serve.

iii.   The available road network and public transport infrastructure, which determine the
       ease (or difficulty) with which customers are able to access a shopping centre, or retail
       facility.

iv.    Significant physical barriers which are difficult to negotiate, and can act as delineating
       boundaries to the trade area served by an individual shopping centre, or retail facility.

The retail facilities at Tonsley will be able to serve an available resident trade area, having
regard to the site on which the Tonsley retail centre will be accommodated, and the
surrounding urban area, including the locations of existing retail facilities in the surrounding
suburbs.

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Section 2: Trade area analysis

In addition, the retail facilities at Tonsley will also play another important role, namely
servicing the needs of the on-site population, which will include the additional resident
population to be accommodated within the Tonsley masterplan area, as well as the day time
worker, student and visitor populations on the Tonsley site.

Each of these customer segments (i.e. resident and works/students) is detailed further
below.

2.2    Resident trade area

Map 2.1 attached shows the resident trade area which has been assessed as being available
to be served by the retail facilities to be provided at Tonsley. This resident trade area
comprises one primary sector and two tertiary sectors – north and south – which have been
defined as follows:

i.    The primary sector is bounded by Sturt Road to the south, South Road to the east,
      Marion to the west, and Celtic Avenue to the north. It comprises the existing suburb of
      Mitchell Park to the immediate west of the Tonsley site as well as the southern portion
      of Clovelly Park, i.e. south of Celtic Avenue. The residents of this primary sector would
      all be able to access the retail facilities at Tonsley easily and quickly. Furthermore, on
      the assumption that a supermarket will be provided at Tonsley (as discussed further
      later in this report) that supermarket would be the closest and most conveniently
      located for all of these residents. For that combination of reasons, this area logically
      represents the primary (resident) trade area for the proposed Tonsley retail centre.

      The population within this primary trade area will grow significantly coming years, due
      to the residential development that will occur within the Tonsley site, as detailed
      further below.

ii.   The secondary north sector is defined as the area to the immediate north of the
      primary sector and which is bounded by Celtic Avenue in the south, South Road in the
      east, Dawes Road in the north, and Marion Road in the west. These residents will be
      able to access the retail centre to be built at Tonsley quite easily, primarily, in the short

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Section 2: Trade area analysis

       term, via Bradley Grove, and in the longer term via the proposed new north-south road
       which will run to the western side of the proposed Tonsley retail centre and link through
       directly to the suburb of Clovelly Park.

iii.   The secondary south sector includes the Flinders University Campus as well as the
       residential population accommodated in the area generally to the south of Sturt Road,
       east of Marion Road, west of Bellevue Drive, and north of Bonneyview Road. While the
       population of this area is relatively small, for these residents the proposed retail
       facilities at Tonsley would be easily accessible, and will also offer the closest and most
       conveniently located supermarket. The key for these residents to utilise the retail
       facilities at Tonsley will be the greatly improved accessibility to Tonsley which will be
       provided by the Mimosa Terrace and Flinders Drive overpasses across the lowered
       Southern Freeway.

The primary and secondary trade area sectors in combination form the main trade area to be
served by the proposed retail facilities at Tonsley.

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Map 2.1: Tonsley
Resident trade area and competition
Section 2: Trade area analysis

2.3    Resident trade area population

Table 2.1 below shows the current population levels within each of these resident trade area
sectors, as well as the projected populations over the next decade. As previously noted, the
residential development to occur on site at Tonsley will account for the majority of the
projected population growth, expected to add in excess of 1,200 residents to the primary
sector.

                                                        Table 2.1
                                    Tonsley trade area population, 2006-2026*

                                    Estimated population                        Forecast population
  Trade area sector            2006             2011           2016        2018            2021            2026

  Primary                      5,750            6,000         6,400        6,560           7,160          8,160

  Secondary sectors
  • North                      2,820            3,040         3,240        3,280           3,340          3,440
  • South                      1,690            1,670         1,720        1,740           1,770          1,820

  Total secondary              4,510            4,710         4,960        5,020           5,110          5,260

  Main trade area            10,260            10,710        11,360       11,580          12,270         13,420

                                                               Average annual growth (no.)
  Trade area sector                           2006-11       2011-16      2016-18        2018-21        2021-26

  Primary                                         50                80        80             200            200

  Secondary sectors
  • North                                         44                40        20              20             20
  • South                                          -4               10        10              10             10

  Total secondary                                 40                50        30              30             30

  Main trade area                                 90            130          110             230            230

                                                                Average annual growth (%)
  Trade area sector                           2006-11       2011-16      2016-18        2018-21        2021-26

  Primary                                       0.9%           1.3%        1.2%            3.0%            2.6%

  Secondary sectors
  • North                                       1.5%           1.3%        0.6%            0.6%            0.6%
  • South                                      -0.2%           0.6%        0.6%            0.6%            0.6%

  Total secondary                               0.9%           1.0%        0.6%            0.6%            0.6%

  Main trade area                               0.9%           1.2%        1.0%            1.9%            1.8%

  *As at June
  Source: ABS Census 2011; MacroPlan Dimasi

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Section 2: Trade area analysis

The residential development on the Tonsley site is to be undertaken by Peet SA (formerly
CIC) and, based on current plans which we understand are soon to be submitted for
development approval, will contain a minimum of 775 dwellings.

However, we understand that further densification of the residential precinct is also likely,
particularly in the southern portion of the residential land, opposite the existing train station.
The final number of dwellings to be delivered could therefore be well in excess of 775.

Advice from Peet SA indicates that the company plans to start selling residential lots on site
in early 2017, and to sell in the order of 100 – 120 lots per year, thereby completing the
residential development by approximately 2025.

Over the longer term, additional changes are anticipated within this trade area, and
particularly within the primary sector, as a result of a Development Plan Amendment (DPA)
which is currently in train. This ministerial initiated DPA proposes to support delivery of
zoning improvements to enable integrated land use and transport outcomes from the
government’s investment in the Darlington Upgrade Project, including providing for
increased density around Tonsley and Clovelly Park stations, and amending the existing
policy for residential areas at Tonsley.

As shown in Table 2.1, there is at present a substantial resident population available to be
served by the retail facilities at Tonsley – over and above the daily on site population, which
is considered further below.

The largest, and by far most important, resident trade area sector is the primary sector, and
that sector accommodates the bulk of the currently available resident population within the
main trade area, with an estimated 6,400 residents at 2016. This factor alone provides very
substantial market support for delivery of a new retail centre at Tonsley, although ensuring
easy accessibility of the subject site for primary trade area residents will be an important
factor that will contribute to the trading success of that centre.

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Section 2: Trade area analysis

2.4   Socio-demographic profile

Table 2.2 and Chart 2.1 show the socio-demographic profiles of trade area residents,
comparing the relevant measures with benchmarks for the total Adelaide metropolitan area
and also the national average in each case. The key features of the existing resident
population can be summarised as follows:

 Generally, other than for the small residential pocket contained in the secondary south

   sector, households within the trade area have well below average income levels.

 The trade area population is slightly younger than average compared with the Adelaide

   metropolitan population overall.

 The level of home ownership throughout the trade area is also below average, with a

   higher representation of renters particularly in the primary sector.

 Residents of Asian origin account for a noticeably higher proportion of the trade area

   population than is the case generally across metropolitan Adelaide.

 Traditional family households (i.e. couples with dependent children) account for lower

   proportions of households throughout each trade area sector than is the case generally
   throughout metropolitan Adelaide or across Australia more broadly. On the other hand,
   lone person households account for a higher than average proportion of total trade area
   households.

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Section 2: Trade area analysis

                                                          Table 2.2
                                 Tonsley main trade area - socio-demographic profile, 2011

                                     Primary          Secondary sectors               Main         Adel Metro       Aust.
Census item                           sector         North            South             TA             avg.         avg.

Per capita income                     $26,266        $28,785          $24,914         $26,769        $32,438       $34,467
Var. from Adel Metro benchmark          -19.0%         -11.3%          -23.2%          -17.5%

Avg. household income                 $58,793        $63,142          $90,709         $63,367        $77,851       $88,205
Var. from Adel Metro benchmark          -24.5%         -18.9%           16.5%          -18.6%

Avg. household size                        2.2             2.2            3.6                2.4          2.4           2.6

Age distribution (% of population)
Aged 0-14                               16.8%          15.1%            9.5%           15.2%           17.7%         19.3%
Aged 15-19                               5.9%           4.9%           12.7%             6.7%           6.6%          6.5%
Aged 20-29                              17.2%          18.1%           31.8%           19.8%           14.1%         13.8%
Aged 30-39                              13.8%          16.5%           16.3%           15.0%           13.1%         13.8%
Aged 40-49                              12.9%          11.1%            8.0%           11.6%           14.2%         14.2%
Aged 50-59                              11.8%          11.6%            6.5%           10.9%           13.1%         12.8%
Aged 60+                                21.5%          22.7%           15.2%           20.9%           21.3%         19.6%
Average age                               38.9           39.7            33.6            38.3            39.1          37.9

Housing status (% of households)
Owner (total)                           52.8%          59.0%           62.0%           56.0%           69.7%         68.7%
• Owner (outright)                      26.2%          29.6%           29.8%           27.8%           32.3%         32.9%
• Owner (with mortgage)                 26.5%          29.3%           32.2%           28.2%           37.4%         35.8%
Renter                                  45.8%          40.8%           37.3%           43.0%           28.8%         30.4%
Other                                    1.4%           0.2%            0.7%             1.0%           1.5%          0.9%

Birthplace (% of population)
Australian born                         66.9%          67.7%           59.5%           66.0%           73.5%         74.0%
Overseas born                           33.1%          32.3%           40.5%           34.0%           26.5%         26.0%
• Asia                                  15.9%          14.2%           23.8%           16.7%            7.4%          8.6%
• Europe                                10.5%          13.5%            8.8%           11.1%           15.2%         10.5%
• Other                                  6.7%           4.6%            7.9%             6.3%           3.9%          7.0%

Family type (% of households)
Couple with dep't children              37.1%          35.6%           39.8%           36.9%           42.2%         45.3%
Couple with non-dep't child.             5.5%           6.2%            6.1%             5.8%           7.6%          7.7%
Couple without children                 21.9%          25.1%           30.4%           23.7%           23.6%         23.0%
One parent with dep't child.            10.7%           8.1%            8.2%             9.6%           9.4%          9.2%
One parent w non-dep't child.            5.0%           5.3%            2.9%             4.9%           3.7%          3.5%
Other family                             2.2%           1.5%            1.3%             1.9%           1.2%          1.1%
Lone person                             17.7%          18.1%           11.4%           17.2%           12.2%         10.2%

Source: ABS Census of Population & Housing, 2011; MacroPlan Dimasi

                                                                                        Tonsley Urban Renewal Project
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                                                                                Assessment of retail development potential
Section 2: Trade area analysis

                                                                        Chart 2.1
                                     Tonsley main trade area - socio-demographic profile, 2011

                                                                    Age distribution
   25%                                                                                                                                       21%
                                                      20%                                                                              21%
                         19%                                              Tonsley MTA           Adel Metro          Aust. Avg.                  20%
   20%            18%
            15%                                                           15%
                                                            14% 14%                   14%       14%       14%
   15%                                                                          13%
                                                                                             12%                      13% 13%
                                                                                                                11%

   10%                          7%
                                      7%    7%

    5%

    0%
             Aged 0-14             Aged 15-19         Aged 20-29           Aged 30-39          Aged 40-49        Aged 50-59             Aged 60+

                                                                      Income levels
$100,000                                                                                                                         $88,205
                                    Tonsley MTA             Adel Metro          Aust. Avg.                      $77,851
 $80,000
                                                                                                $63,367

 $60,000
                                                            $34,467
 $40,000                 $26,769           $32,438

 $20,000

     $0
                                    Per capita income                                                  Avg. household income

                                                              74%
                                                                      Country of birth
   80%                                     73%
                          66%
                                                                                         Tonsley MTA            Adel Metro             Aust. Avg.
   60%

                                                                                                 34%
   40%
                                                                                                                27%              26%

   20%

    0%
                                     Australian Born                                                        Overseas Born

                                                                       Family type
   50%                    45%
                   42%
            37%                                                                          Tonsley MTA            Adel Metro           Aust. Avg.
   40%

   30%                                                        24%
                                                                      24% 23%
                                                                                                                                  17%
   20%
                                                                                      10% 9%                                            12% 10%
                                     6%          8%                                               9%
   10%                                     8%                                                               5% 4%
                                                                                                                          4%

    0%
              Couple with      Couple with non-              Couple without        One parent with         One parent with         Lone person
           dependent children dependent children                children          dependent children       non-dependent
                                                                                                              children

Source: ABS Census of Population & Housing, 2011; MacroPlan Dimasi

                                                                                                            Tonsley Urban Renewal Project
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                                                                                                 Assessment of retail development potential
Section 2: Trade area analysis

2.5        Resident trade area retail expenditure capacity

The socio-demographic profiles of the populations within each trade area sector naturally
impact on the retail expenditure capacity of those populations. Chart 2.2 below shows the
estimated retail expenditure levels per person, by category, for the populations of the
various trade area sectors (primary and secondary) as compared with the averages for the
Adelaide metropolitan area and for Australia overall. This chart highlights the below average
retail expenditure level per person within the Tonsley trade area generally, which is to be
expected having regard to the income levels of trade area residents and the other socio-
demographic features of the population.

                                                                        Chart 2.2
                                  Tonsley main trade area - retail expenditure per person, 2015/16*

                                                                      Total retail
$16,000
                                              Tonsley MTA               Adel Metro               Aust. Avg.                                         13,955
$14,000                                                                                                                            13,032
                                                                                                                         11,880
$12,000
$10,000
                                          7,929
 $8,000          6,963           7,403
                                                                                            6,026
                                                                     4,917       5,629
 $6,000
 $4,000
 $2,000
      $0
                           Total Food                                        Total Non-food                                       Total Retail

                                                                              Food
 $3,500                                              3,035            3,212
                                                             3,072                         Tonsley MTA                  Adel Metro                  Aust. Avg.
 $3,000
 $2,500                           2,188
              1,996      2,094
 $2,000                                                                                                                                                  1,740
                                                                                                                                   1,436    1,549
 $1,500
 $1,000                                                                                                         788
                                                                                           496      688
  $500
      $0
                   Fresh Food                      Other Food & Groceries                   Packaged Liquor                           Food Catering

                                                                        Non-food
 $3,000
                                                           2,498                         Tonsley MTA                  Adel Metro                 Aust. Avg.
 $2,500                                            2,316
                                           2,024
 $2,000
                           1,393
 $1,500      1,108 1,255
                                                                                                          872   1,038 1,072
 $1,000                                                                                   657
                                                                         575 641
                                                                                                                                           338     378       406
  $500

      $0
                 Apparel                  Household Goods                       Leisure                   General Retail                   Retail Services

*Including GST
Source: MarketInfo; MacroPlan Dimasi

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                                                                                                     Assessment of retail development potential
Section 2: Trade area analysis

Tables 2.3 – 2.5 below detail the current and projected future retail expenditure volumes, by
category, for the respective populations of the primary, secondary north and secondary
south trade area sectors. Spending forecasts are presented in constant 2015/16 dollars (i.e.
excluding retail inflation). This information in turn forms the basis for the estimation of retail
floorspace potential at the Tonsley site, to be drawn from the existing trade area population.
Additional potential will come from the on-site daily population of workers and students,
which are discussed further below.

Table 2.3 below details the total retail expenditure by category for the primary sector
population, while Tables 2.4 and 2.5 show similar data for the secondary north and
secondary south sectors respectively. The retail expenditure categories, as shown in the
tables, are detailed further below.

 Retail expenditure category definitions:

  FLG: take-home food and groceries, as well as packaged liquor.

  Food catering: expenditure at cafes, take-away food outlets and restaurants.

  Apparel: clothing, footwear, fashion accessories and jewellery.

  Household goods: giftware, electrical, computers, furniture, homewares and hardware goods.

  Leisure: sporting goods, music, DVDs, computer games, books, newspapers & magazines, stationery and
     photography equipment.

  General retail: pharmaceutical goods, cosmetics, toys, florists, mobile phones and pets.

  Retail services: hair & beauty, optical goods, dry cleaning, key cutting and shoe repairs.

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                                                                       Assessment of retail development potential
Section 2: Trade area analysis

                                                      Table 2.3
                   Tonsley primary sector - retail expenditure by category ($M), 2016-2026*

Year ending          FLG          Food      Apparel     Household   Leisure    General       Retail       Total
June                             catering                 goods                  retail     services       retail

2016                  35.7           8.8       6.8         12.4        3.6         5.4          2.1         74.8
2017                  36.4           9.0       6.9         12.6        3.7         5.5          2.1         76.3
2018                  37.2           9.2       7.0         12.9        3.7         5.6          2.2         77.8
2019                  38.3           9.5       7.2         13.2        3.8         5.7          2.2         80.0
2020                  39.7          10.0       7.4         13.7        3.9         5.9          2.3         83.0
2021                  41.2          10.4       7.7         14.2        4.1         6.1          2.4         86.1
2022                  42.7          10.8       7.9         14.7        4.2         6.3          2.5         89.1
2023                  44.2          11.2       8.2         15.2        4.3         6.5          2.6         92.2
2024                  45.7          11.6       8.4         15.7        4.5         6.7          2.7         95.3
2025                  47.3          12.1       8.7         16.2        4.6         6.9          2.7         98.6
2026                  49.0          12.6       9.0         16.7        4.7         7.1          2.8        101.9

Average annual growth ($M)
2016-2026              1.3           0.4       0.2          0.4        0.1         0.2          0.1          2.7

Average annual growth (%)
2016-2026            3.2%          3.6%      2.8%          3.0%      2.8%        2.8%         3.2%         3.1%

*Constant 2015/16 dollars & including GST
Source: MarketInfo; MacroPlan Dimasi

                                                      Table 2.4
              Tonsley secondary north sector - retail expenditure by category ($M), 2016-2026*

Year ending          FLG          Food      Apparel     Household   Leisure    General       Retail       Total
June                             catering                 goods                  retail     services       retail

2016                  18.1           4.6       3.5          6.7        1.8         2.9          1.1         38.8
2017                  18.4           4.7       3.6          6.8        1.9         3.0          1.1         39.5
2018                  18.7           4.8       3.6          6.9        1.9         3.0          1.1         40.0
2019                  18.9           4.9       3.7          7.0        1.9         3.0          1.1         40.5
2020                  19.2           5.0       3.7          7.1        1.9         3.1          1.1         41.1
2021                  19.5           5.1       3.7          7.1        1.9         3.1          1.2         41.6
2022                  19.7           5.2       3.8          7.2        2.0         3.1          1.2         42.2
2023                  20.0           5.3       3.8          7.3        2.0         3.2          1.2         42.8
2024                  20.3           5.4       3.9          7.4        2.0         3.2          1.2         43.3
2025                  20.6           5.5       3.9          7.5        2.0         3.2          1.2         43.9
2026                  20.9           5.6       3.9          7.6        2.0         3.3          1.2         44.5

Average annual growth ($M)
2016-2026              0.3           0.1       0.0          0.1        0.0         0.0          0.0          0.6

Average annual growth (%)
2016-2026            1.4%          1.8%      1.0%          1.2%      1.0%        1.0%         1.4%         1.4%

*Constant 2015/16 dollars & including GST
Source: MarketInfo; MacroPlan Dimasi

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                                                                       Assessment of retail development potential
Section 2: Trade area analysis

                                                        Table 2.5
                Tonsley secondary south sector - retail expenditure by category ($M), 2016-2026*

  Year ending          FLG          Food      Apparel     Household   Leisure     General       Retail       Total
  June                             catering                 goods                   retail     services      retail

  2016                   9.4           2.8       2.2          3.7        1.1          1.5          0.7         21.3
  2017                   9.6           2.8       2.2          3.8        1.1          1.5          0.7         21.6
  2018                   9.7           2.9       2.2          3.8        1.1          1.5          0.7         21.9
  2019                   9.8           2.9       2.2          3.9        1.1          1.5          0.7         22.2
  2020                  10.0           3.0       2.3          3.9        1.1          1.5          0.7         22.5
  2021                  10.1           3.0       2.3          4.0        1.1          1.6          0.7         22.8
  2022                  10.3           3.1       2.3          4.0        1.1          1.6          0.7         23.1
  2023                  10.4           3.1       2.3          4.1        1.1          1.6          0.7         23.4
  2024                  10.5           3.2       2.3          4.1        1.1          1.6          0.7         23.7
  2025                  10.7           3.3       2.4          4.1        1.2          1.6          0.7         24.0
  2026                  10.8           3.3       2.4          4.2        1.2          1.6          0.8         24.3

  Average annual growth ($M)
  2016-2026              0.1           0.1       0.0          0.0        0.0          0.0          0.0          0.3

  Average annual growth (%)
  2016-2026            1.4%          1.8%      1.0%          1.2%      1.0%         1.0%         1.4%         1.3%

  *Constant 2015/16 dollars & including GST
  Source: MarketInfo; MacroPlan Dimasi

The primary sector population generates annual retail expenditure of $74.8 million at
2015/16. Because of the residential development to be delivered on the Tonsley site, this
retail expenditure volume will increase strongly over coming years, estimated to grow at an
average annual rate of 3.1% over the next decade, to reach $101.9 million at 2026, in
constant 2015/16 dollars.

For each of the secondary sectors the rate of growth in available retail expenditure over the
next decade is expected to be more modest, in the order of 1.3% – 1.4% annually. The two
secondary sectors in combination generate approximately $60 million of retail expenditure
as at 2016, and this figure is projected to increase to some $69 million by 2026.

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                                                                         Assessment of retail development potential
Section 2: Trade area analysis

2.6   On-site workforce and student numbers

In addition to the surrounding resident population within the main trade area, the daily on-
site population at the Tonsley site will clearly provide support for the retail facilities to be
provided on site.

At present there are approximately 6,000 students on-site, the majority of them attending
TAFE SA, and approximately 1,400 are accommodated in the Flinders University CSEM
Building. In addition, the estimated workforce accommodated on the Tonsley site at present
is 1,000.

Discussions with Flinders University have revealed that the University plans to construct
another building, adjacent to its existing building at Tonsley, to accommodate a new
business school, which is to be focused on innovation and entrepreneurship, potentially
targeting employees of SMEs in particular. This building is expected to be in the order of
20,000 sq.m in size (the current CSEM Building being approximately 16,000 sq.m) and while
its delivery will be dependent on available funding, there is some likelihood that it could
occur by approximately 2019/20.

Flinders University also plans to significantly increase its total student numbers on its main
campus (which are currently approximately 22,000) to around 30,000 by 2021. As part of this
growth, the University expects to also increase the share of its total student population
accounted for by international students, and to provide additional student accommodation
in order to meet that growth. In the order of 5,000 additional student beds are estimated to
be required, and these additional student beds are expected to be provided in part on the
main Flinders University Campus and in part potentially on the Tonsley site.

The number of workers accommodated on the Tonsley site is also planned to increase
substantially, from its current level of approximately 1,000 to around 6,000 at full
development. Therefore, the contribution to need and demand for retail facilities at Tonsley
to be made by the daytime populations of workers and students will be substantial as the
Tonsley Vision is progressively delivered.

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                                                            Assessment of retail development potential
Section 3: Competition

Map 2.1 previously showed the locations of the various surrounding retail facilities in
proximity to Tonsley, which would be the key competitive facilities to the Tonsley retail
centre. Table 3.1 below summarises each of these relevant competitors.

                                                            Table 3.1
                                    Tonsley - schedule of competing retail facilities

                                      Retail                                                         Dist. by road from
  Centre                              GLA          Major traders                                          Tonsley
                                     (sq.m)                                                                 (km)

  Foodland Marion                      2,000       Foodland                                                   1.3
  Parkholme SC                         5,100       Coles                                                      2.7
  Westfield Marion                   118,000       Myer, David Jones, Big W, Kmart, Target,                   2.8
                                                   Harris Scarfe, Coles, Woolworths, Aldi
  Pasadena Green                       8,000       Target, Foodland                                           2.9
  Castle Plaza                        21,400       Target, Foodland, Coles                                    4.2

  Source: Property Council of Australia; MacroPlan Dimasi

The key features of the competitive environment within which the new retail centre at
Tonsley will operate are summarised as follows:

 Within the defined primary sector, there are no retail facilities, although immediately to

   the west of the primary sector, on the western side of Marion Road, is the Marion
   Foodland IGA store, which sits adjacent to a Terry White Chemist and opposite a small
   number of local shops, including a pizza shop, a take-away chicken shop, as well as a
   SipnSave drive-thru bottleshop. The Romeo’s Foodland IGA is only some 700 sq.m in size,
   however, and the total facility is very small in terms of effectively meeting the food and
   grocery needs of the primary sector residents.

 The nearest other centre is Park Holme SC, which is situated at the north-western edge of

   the secondary north sector, at the intersection of Marion Road and Daws Road. The
   centre is anchored by a Coles supermarket of approximately 2,100 sq.m, and includes

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                                                                             Assessment of retail development potential
Section 3: Competition

   approximately 10 supporting specialty stores, with tenants such as Australia Post, Bakers
   Delight, The Cheesecake Shop, Chemplus Pharmacy, and various take-away foodstores.

 Apart from these two relatively small facilities, the nearest other centres are the much

   larger and higher order Westfield Marion, Castle Plaza and Pasadena Green. However,
   none of these centres can offer the convenience, particularly for weekly food and grocery
   shopping and for other even more frequent shopping needs, to trade area residents,
   which will be offered by the proposed Tonsley retail centre.

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                                                          Assessment of retail development potential
Section 4: Comparable projects

While there are no projects which are exactly the same as Tonsley, there are nonetheless a
number of infill/brownfield redevelopment projects undertaken both in Adelaide and in
other major urban areas of Australia, from which some learnings can be drawn and can be
applied to the Tonsley situation.

                                                                   Table 4.1
                                                   Comparable centres - composition

                                    Retail                   No. of specialty stores
  Centre                             GLA         FLG        Food       Retail    Other*      Total      Majors
                                    (sq.m)                catering services

  Mawson Central, SA                 14,800
  • Current                          12,000         5        10           2         13         30       Target, Woolworths
  • Proposed                          2,800       n.a        n.a        n.a        n.a        n.a       Aldi
  St. Clair Village, SA               6,500         3          6          2          4         15       Coles
  Subiaco Square, WA                  6,500         2          8          3          6         19       Woolworths
  Coburg North Village, VIC           6,300         1          6          1          7         15       Coles
  Burwood Square, VIC**              10,500       n.a        n.a        n.a        n.a        n.a       Supermarket, large format liquor

  *Including non-retail specialty tenants such as medical centres, fitness centres, real estate agents, banks, etc.
  **Proposed centre
  Source: Property Council of Australia; MacroPlan Dimasi

Table 4.1 below shows a number of these examples, including Mawson Central and St Clair
Village in Adelaide; Subiaco Square in Perth; together with Coburg North Village and
Burwood Brickworks in Melbourne. Four of the above projects have been completed, while
Burwood Brickworks is currently in the final stages of planning, and expected to commence
construction soon.

The attached Maps 4.1 – 4.5 show the locations of these various projects, and the
surrounding context in each case. All of them are redevelopments of formerly industrial
areas, and generally they have some comparable relationships to existing employment areas
nearby, train stations within relatively short distances, and in some cases, education facilities
also nearby.

A number of the projects, however, have immediate proximity to more densely populated
residential land, in particular Coburg North Village in the northern suburbs of Melbourne and
Burwood Square in the eastern suburbs of Melbourne.

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                                                                                            Assessment of retail development potential
Map 4.1: Mawson Central
Site location
Map 4.2: St Clair Village
Site location
Map 4.3: Subiaco Square
Site location
Map 4.4: Coburg North Village
Site location
Map 4.5: Burwood Square
Site location
Section 4: Comparable projects

The key learnings from these various examples, in terms of retail floorspace provision, can be
summarised as follows:

 All of them contain at least one supermarket (at Burwood Brickworks, the anchor tenant

   will be a large format supermarket, expected to be Woolworths).

 The provision of retail facilities ranges from 6,300 sq.m to 14,800 sq.m (at Mawson

   Central, after various stages of developments, and many years after the first stage was
   built).

 The specialty mix is heavily focused around food catering stores (i.e. take-away food

   stores and casual cafes/restaurants) and retail services.

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                                                               Assessment of retail development potential
Section 5: Retail potential at Tonsley

Having regard to all of the information and analysis set out in the previous sections of this
report, this final section now details the estimates of retail floorspace potential at Tonsley,
and provides recommendations as to the suggested mix of tenants to occupy that retail
space.

5.1      Estimated supportable floorspace attributable to resident population

As a first step, Table 5.1 below sets out the estimated retail floorspace (in total) that is
required to meet the needs of the main trade area resident population. The estimates of
floorspace are derived by commencing with the total retail expenditure potential generated
by the main trade area population (detailed, by category, in Tables 2.3 – 2.5 previously in this
report) and applying an average turnover level or Required Turnover Density (RTD) to the
available expenditure. The RTD reflects the reasonable turnover level required to support
sustainable, successful retailing across each of the categories. RTD levels range from $8,500
per sq.m for the take-home food, liquor and groceries category which is primarily serviced by
supermarkets, to $4,000 per sq.m for the household goods category.

                                                       Table 5.1
             Tonsley resident main trade area - indicative floorspace demand (sq.m), 2016-2026

 Year ending           FLG          Food     Apparel     Household   Leisure     General       Retail      Total
 June                             catering                 goods                  retail     services       retail

 RTD ($/sq.m)*         8,500        6,000     4,500         4,000     6,000        7,000        5,500       6,190

 2016                  7,438        2,703     2,781         5,713     1,083        1,407         694       21,819
 2017                  7,578        2,765     2,821         5,809     1,099        1,428         707       22,206
 2018                  7,712        2,824     2,860         5,899     1,114        1,447         719       22,576
 2019                  7,887        2,899     2,912         6,019     1,134        1,474         735       23,059
 2020                  8,104        2,989     2,979         6,170     1,160        1,508         755       23,665
 2021                  8,329        3,083     3,048         6,325     1,188        1,543         776       24,291
 2022                  8,553        3,177     3,116         6,479     1,214        1,578         796       24,914
 2023                  8,777        3,271     3,183         6,633     1,241        1,612         817       25,533
 2024                  9,007        3,369     3,252         6,790     1,268        1,647         838       26,171
 2025                  9,244        3,469     3,323         6,952     1,296        1,683         860       26,827
 2026                  9,488        3,574     3,396         7,118     1,325        1,721         882       27,503

 *Constant 2015/16 dollars & including GST
 Source: MacroPlan Dimasi

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                                                                         Assessment of retail development potential
Section 5: Retail potential at Tonsley

Tables 5.2 – 5.4 set out the estimates of retail floorspace potential that can be retained, from
each trade area sector and then in total across the main trade area, at Tonsley. These
estimates are based on our assessment of the proportions of available retail expenditure in
each category, across each trade area sector, that can be retained by a neighbourhood level
retail centre at the Tonsley site. The key features of these estimated retention rates are the
following:

 Unsurprisingly, the estimated rates of retention of available expenditures from the

   primary sector are much higher than is the case from the two secondary sectors.

 The expected rates of retention of food and grocery spending (primarily attributable to a

   supermarket, which is expected to be the anchor store for the retail facilities at Tonsley)
   are much higher than is the case for expenditure across other categories.

 The retention rates generally of convenience type retail expenditure (e.g. general

   retailing, retail services) are significantly higher than retention rates of comparison retail
   expenditure (on categories such as apparel, household and household goods). Indeed, for
   a category such as apparel, it is unlikely that any of the available trade area expenditure
   can reasonably be retained at Tonsley, because the type of retail centre which can be
   delivered at Tonsley will not be able to offer any critical mass in apparel retailing, and
   realistically is unlikely to attract any apparel retailers.

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                                                                 Assessment of retail development potential
Section 5: Retail potential at Tonsley

                                                    Table 5.2
              Tonsley resident primary sector - potential floorspace retained (sq.m), 2016-2026

Year ending         FLG        Food       Apparel     Household     Leisure     General       Retail      Total
June                          catering                  goods                    retail     services       retail

Pot. retained         60%        30%          0%          10%         10%          25%          40%          31%

2016                 2,520        440           0          310          60          194          151       3,675
2017                 2,572        451           0          316          61          197          154       3,751
2018                 2,625        462           0          322          62          200          157       3,828
2019                 2,701        477           0          331          64          205          162       3,940
2020                 2,804        498           0          343          66          212          168       4,089
2021                 2,910        518           0          355          68          219          174       4,244
2022                 3,015        539           0          367          70          226          181       4,399
2023                 3,120        560           0          379          72          233          187       4,551
2024                 3,228        582           0          391          75          240          193       4,710
2025                 3,340        605           0          404          77          248          200       4,873
2026                 3,456        628           0          417          79          255          207       5,043

Source: MacroPlan Dimasi

                                                    Table 5.3
        Tonsley resident secondary north sector - potential floorspace retained (sq.m), 2016-2026

Year ending         FLG        Food       Apparel     Household     Leisure     General       Retail      Total
June                          catering                  goods                    retail     services       retail

Pot. retained         25%        10%          0%           0%          0%          10%          15%          11%

2016                   532         77           0               0        0           42           29         681
2017                   541         79           0               0        0           43           30         693
2018                   549         80           0               0        0           43           30         703
2019                   557         82           0               0        0           43           31         713
2020                   564         83           0               0        0           44           31         723
2021                   572         85           0               0        0           44           32         733
2022                   580         86           0               0        0           45           32         744
2023                   589         88           0               0        0           45           33         754
2024                   597         90           0               0        0           46           33         765
2025                   605         91           0               0        0           46           34         776
2026                   614         93           0               0        0           47           34         787

Source: MacroPlan Dimasi

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                                                                        Assessment of retail development potential
Section 5: Retail potential at Tonsley

                                                  Table 5.4
        Tonsley resident secondary south sector - potential floorspace retained (sq.m), 2016-2026

Year ending         FLG       Food      Apparel     Household     Leisure     General       Retail      Total
June                         catering                 goods                    retail     services       retail

Pot. retained         25%       10%         0%           0%          0%          10%          15%          10%

2016                   278        46          0               0        0           21           18         363
2017                   282        47          0               0        0           21           18         369
2018                   285        48          0               0        0           22           19         374
2019                   289        49          0               0        0           22           19         379
2020                   293        50          0               0        0           22           19         384
2021                   297        51          0               0        0           22           19         390
2022                   302        52          0               0        0           23           20         395
2023                   306        52          0               0        0           23           20         401
2024                   310        53          0               0        0           23           20         406
2025                   314        54          0               0        0           23           20         412
2026                   318        55          0               0        0           23           21         418

Source: MacroPlan Dimasi

                                                  Table 5.5
            Tonsley resident main trade area - potential floorspace retained (sq.m), 2016-2026

Year ending         FLG       Food      Apparel     Household     Leisure     General       Retail      Total
June                         catering                 goods                    retail     services       retail

Pot. retained         45%       21%         0%           5%          6%          18%          29%          22%

2016                 3,329      564           0          310          60          257         198        4,719
2017                 3,395      577           0          316          61          261         202        4,812
2018                 3,459      591           0          322          62          265         206        4,905
2019                 3,547      608           0          331          64          270         211        5,032
2020                 3,662      631           0          343          66          278         218        5,197
2021                 3,780      654           0          355          68          286         225        5,367
2022                 3,897      677           0          367          70          294         232        5,537
2023                 4,014      701           0          379          72          301         239        5,706
2024                 4,135      725           0          391          75          309         246        5,881
2025                 4,259      750           0          404          77          317         254        6,061
2026                 4,388      776           0          417          79          325         262        6,247

Source: MacroPlan Dimasi

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                                                                      Assessment of retail development potential
Section 5: Retail potential at Tonsley

As detailed in Table 5.5 above, the main trade area resident population is estimated to
support a retail floorspace provision, at 2016, of approximately 4,700 per sq.m at the
Tonsley site. Over the next decade, the amount of supportable floorspace, attributable to
the main trade area resident population, is estimated to increase to 6,250 sq.m.

A key feature of the estimates set out in Table 5.5 is the quantum of estimated supportable
FLG floorspace, i.e. floorspace selling, take-home food, packaged liquor and groceries. The
amount of such floorspace estimated to be supportable at the Tonsley site, attributable
solely to the main trade area resident population, is 3,329 sq.m at 2016, and is projected to
increase to 4,388 sq.m by 2026, with the growth largely attributable to the additional
resident population to be accommodated at the Tonsley site.

The first conclusion which can be drawn, therefore, is that there is sound demand, from the
existing resident population, to support a full size supermarket at Tonsley and that demand
will increase noticeably over the next decade.

5.2   Additional supportable floorspace attributable to on-site daily population

In addition to the floorspace that will be supportable by the main trade area population,
additional demand, as previously detailed, will come from the on-site daily population, which
includes workers and students.

Table 5.6 below details the total retail floorspace estimated to be supportable at the Tonsley
site after allowing for the additional demand from on-site workers and students. That
additional demand has been estimated having regard to the current numbers of both
workers and students, as discussed previously in Section 2 of the report, and the expected
steady growth in on-site worker numbers in particular, which is assumed to occur at a similar
rate to the growth in on-site resident population.

The contributions to retail floorspace demand from workers and students on the Tonsley site
are estimated at 2016 by having regard to the numbers of workers and students; their
estimated retail expenditure level per person; the total retail floorspace demand which that

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                                                           Assessment of retail development potential
Section 5: Retail potential at Tonsley

expenditure will support; and the proportions of that total retail floorspace demand which
these workers and students are likely to direct to a neighbourhood level retail facility that is
provide at their place of work/study.

The additional demand from workers and students, based on the above methodology, is
calculated to account for the following additions to the previously established levels of
demand attributable to the trade area resident population:

 An increase of 10% on the demand for FLG floorspace.

 An increase of 75% to the floorspace demand for food catering floorspace (due to the fact

   that much of the demand from both workers and students will be directed to this retail
   category, which is expected to experience a much higher rate of retention on site than
   any of the other categories).

 A 40% in demand for leisure retail floorspace.

 A 20% increase in demand for general retail floorspace

 A 20% increase in demand for retail services floorspace.

 Overall, a 16% increase in demand for total retail floorspace, once all of the categories are

   taken into account.

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                                                            Assessment of retail development potential
Section 5: Retail potential at Tonsley

                                                        Table 5.6
                             Tonsley - potential floorspace retained (sq.m), 2016-2026

 Year ending                       FLG        Food      Apparel Household Leisure        General     Retail      Total
 June                                        catering               goods                 retail    services     retail

 Pot. resident spend retained        45%        21%         0%        5%          6%        18%        29%         22%

 2016                               3,662       987           0       310          84        308        238       5,589
 2017                               3,734      1,010          0       316          85        313        243       5,702
 2018                               3,805      1,033          0       322          87        318        247       5,813
 2019                               3,902      1,064          0       331          89        325        254       5,965
 2020                               4,028      1,104          0       343          92        334        262       6,161
 2021                               4,158      1,144          0       355          95        343        270       6,365
 2022                               4,287      1,185          0       367          98        352        279       6,568
 2023                               4,416      1,226          0       379        101         361        287       6,770
 2024                               4,548      1,269          0       391        104         371        296       6,979
 2025                               4,685      1,313          0       404        108         380        305       7,195
 2026                               4,827      1,358          0       417        111         390        314       7,417

 % from workers/students             10%        75%         0%        0%         40%        20%        20%         16%

 *Constant 2015/16 dollars & including GST
 Source: MacroPlan Dimasi

Once allowance is made for the additional demand from on-site workers and students, the
total estimated retail floorspace demand at Tonsley increases to some 5,600 sq.m at 2016.
By 2026, the level of retail floorspace demand is estimated to have grown to approximately
7,400 sq.m.

The recommendations for centre scale, mix and timing, set out below, are based on the
above analysis. However, the potential for the centre will also be augmented, to a small
degree, by additional business that will be attracted from beyond the main trade area, e.g.
from residents of other, nearby, suburbs and from visitor to Tonsley.

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                                                                            Assessment of retail development potential
Section 5: Retail potential at Tonsley

5.3   Recommended centre scale and mix

Table 5.7 below details the recommended scale and mix for the retail facilities at Tonsley.
The key features are the following:

 First, we consider that a full scale supermarket, in the order of 3,200 sq.m – 3,500 sq.m,

   should be the anchor tenant.

 In addition to the supermarket, a limited number of fresh food specialty stores, including

   a bakery and potentially a butcher, a seafood operator, and fresh produce specialist, to
   supplement the FLG offer.

 We further recommend a provision in the range of 1,200 – 1,500 sq.m of floorspace to be

   directed to food catering, comprising take-away foodstores, cafes, and a small number of
   casual restaurants.

 While there will be some demand for household goods floorspace, most of that demand

   would typically be met, in a centre of this scale and nature, by the supermarket anchor,
   through its general merchandise offer including items such as cutlery and crockery,
   household linen, and laundry items, etc.

 The Leisure Retail category and the General Retail category can support a number of

   tenants such as newsagency, pharmacy and potentially a mobile phone outlet.

 Retail services can include hairdressers, optometrist, repair kiosk (such as Mr Minit), and

   drycleaning.

 Finally, in addition to the retail facilities, various non-retail uses can add further to the

   total centre floorspace. Such non-retail uses can include fitness centre, medical centre,
   real estate agents, travel agencies and potentially one or two banks.

In terms of timing, we consider such a centre will be supportable once the road
infrastructure on-site has been delivered and the on-site residential development is under
way, i.e. within the next few years.

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                                                           Assessment of retail development potential
Section 5: Retail potential at Tonsley

                                              Table 5.7

                             Tonsley - Indicative centre scale and mix

 Category                                               GLA
                                                       (sq.m)

 Supermarket                                              3,500

 Retail specialties
 Food & liquor                                             500
 Food catering                                            1,200
 Leisure                                                   100
 General                                                   400
 Retail services                                           300
 Total retail spec.                                       2,500

 Total centre - retail                                    6,000

 Non-retail
 Real estate/travel agent                                  100
 Bank                                                      100
 Fitness centre                                            400
 Medical centre                                            400
 Total non-retail                                         1,000

 Total centre                                             7,000

 Source: MacroPlan Dimasi

Table 5.8 below provides more detail as to the type of specialty tenancy mix which could be
supported at the proposed centre.

                                               Table 5.8
                                    Tonsley - Suggested tenants

 Category                   Suggested tenants

 Food & liquor              Bakery, butcher, seafood, fresh food produce
                            Nandos, Subway, Roll'd, Grill'd, Guzman y Gomez, Schnitz, Boost, Noodle Hut,
 Food catering
                            Sumo Salad, Muffin Break, Cibo, fish and chips, casual Italian restaurant

 Leisure/general            Newsagency, pharmacy, florist, Optus, Telstra, Vodaphone
 Retail services            Hairhouse Warehouse, Specsavers, barber, repairs, dry cleaning

 Non-retail                 Fitness centre, bank, travel agent, real estate agent, medical centre

 Source: MacroPlan Dimasi

                                                                           Tonsley Urban Renewal Project
                                                                                                                  40
                                                                   Assessment of retail development potential
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