rt_0891
June 15th, 2005, 10:00 PM
Mall developer scouting Vancouver for expansion
Owner of several major malls is looking to add another one
Derrick Penner
Vancouver Sun, with files from Bloomberg
June 15, 2005
Canada's biggest pension-fund manager wants to build a $300-million, one-million-square-foot, "super-regional" mall in Vancouver as part of a $1-billion expansion of its retail property holdings, Caisse de Depot et Placement du Quebec said Tuesday.
The Caisse's Ivanhoe Cambridge unit and Mills Corp., an Arlington, Va.-based property developer, want to build three malls by 2015, with the other two to be located in Montreal and Calgary, Paul Gleeson, Ivanhoe's vice-president of development, said in an interview with Bloomberg News.
The intent is to emulate the success the companies have had with their $355-million Vaughan Mills development, the first mall to open in Canada in 14 years, which saw 6.5 million visitors and sales of $450 per square foot since opening last November.
"We are focusing on cities of at least one million people," Gleeson said during a Montreal conference organized by the International Council of Shopping Centres. "We are most advanced in Calgary, where we hope to open in 2007."
Vancouver-based retail consultant Blake Hudema said the plans that the Caisse revealed Tuesday revives a plan it talked about four or five years ago to build a network of centres in Toronto, Montreal, Edmonton, Calgary and Vancouver.
"Then [the plan] went away for about four years," Hudema said. "Vaughan went through its birth, is the best way to put it. Word is they seem to be happy with it, and the rumour is [Vancouver is] back on the plate," Hudema said.
He suspects that Edmonton was cut from the plan because of the dominance that West Edmonton Mall and a new power-centre facility, South Edmonton Common, have in that market. Calgary is a natural location, however, because Ivanhoe Cambridge already owns property in the city.
Hudema said Montreal is also a natural expansion spot because the city has "scads of land" available for development.
British Columbia, which hit a record $47.2 billion in retail sales in 2004, would be a desirable location. The difficulty will be finding a site to put such a large shopping centre.
Canada-wide, retail sales rose to a record $30.4 billion in March, the 10th gain in 11 months, according to Statistics Canada.
In Greater Vancouver, Hudema noted that malls in the past have been built on sites that are peripheral to the city, such as Guildford Town Centre or Metropolis at Metrotown.
"But, industrial sites that have been rezoned can be purchased at a reasonable price. Where do you go in Greater Vancouver is the great question," he added.
A centre of one million square feet in size would need 50 to 60 acres of property, Hudema estimated, with a desired "epicentre" near the 200th Street exit of Highway 1.
Hudema said the Port Kells community on the boundary of Surrey has asked for a community plan, "but I don't think the Langley [municipalities] or [Greater Vancouver Regional District] would entertain a competing centre to existing town centres."
Hugh Kellas, the GVRD's director of planning, said that from a regional perspective, the GVRD board's preference would be to see any large development placed somewhere with good alternative transportation links so people can get to it "by some other means than the automobile."
Placing it, however, would be up to the community plans of individual municipalities.
Mark Startup, president of Retail B.C., said the Caisse's announcement shows that there is a sense of confidence in B.C. and Canada's retail environment. In the case of B.C., he added, forecasts hint at continued growth in the retail sector.
The Caisse is a "savvy investment vehicle," and the pension managers see potential in the Lower Mainland market, which is reassuring, Kevin Evans, B.C. vice-president of the Retail Council of Canada.
"Beyond that, I have some questions about the ability of the market to absorb something that large," because it already has the reputation for being over-retailed, he added.
Hudema said if the B.C. project emulates Vaughn Mills, Ivanhoe will build what the industry refers to as a "internalized power centre," a mall that collects a smaller number of medium to large stores in an enclosed environment.
Ivanhoe already owns the Lower Mainland's largest mall, Burnaby's Metropolis, as well as Guildford Town Centre in Surrey, Oakridge Centre and Richmond Centre.
However, a Vaughan-Mills-style mall would have a "super-regional" focus, attempting to draw customers from Vancouver Island, the Okanagan and Interior.
"That starts to spread the impact around such that [a super-regional development] is warranted," Hudema said. "It offers singular, unique tenants to a provincial market that you wouldn't find in a one-million-square-foot Park Royal or Pacific Centre."
He added that national expansion could have something to do with the tenants that Ivanhoe wants to bring to its Vaughan Mills development.
Hudema said Burlington Coat Factory, a major U.S. factory outlet store, plans on locating at Vaughan Mills, but has told Ivanhoe that it wants to have more potential locations for stores.
"As I understand it, Burlington is very desirous of Canada and Vaughan Mills, and is waiting for a chance to [better] justify its distribution," he added.
"We would like to get the ball rolling in the next four years," Gleeson said. "Vaughan Mills took eight years to get done, but now that the concept is in place, we are hoping things can go faster for the other malls."
dpenner@png.canwest.com
MALL SPRAWL:
Greater Vancouver is already home to three shopping malls that exceed one million square feet.
Fourth-place Coquitlam Centre comes close at 920,000 square feet.
Metropolis at Metrotown:
1.6 million square feet
Pacific Centre:
1.08 million square feet
Park Royal:
1.05 million square feet
Coquitlam Centre:
920,000 square feet
Ran with fact box "Mall Sprawl", which has been appended to the end of the story.
© The Vancouver Sun 2005
Owner of several major malls is looking to add another one
Derrick Penner
Vancouver Sun, with files from Bloomberg
June 15, 2005
Canada's biggest pension-fund manager wants to build a $300-million, one-million-square-foot, "super-regional" mall in Vancouver as part of a $1-billion expansion of its retail property holdings, Caisse de Depot et Placement du Quebec said Tuesday.
The Caisse's Ivanhoe Cambridge unit and Mills Corp., an Arlington, Va.-based property developer, want to build three malls by 2015, with the other two to be located in Montreal and Calgary, Paul Gleeson, Ivanhoe's vice-president of development, said in an interview with Bloomberg News.
The intent is to emulate the success the companies have had with their $355-million Vaughan Mills development, the first mall to open in Canada in 14 years, which saw 6.5 million visitors and sales of $450 per square foot since opening last November.
"We are focusing on cities of at least one million people," Gleeson said during a Montreal conference organized by the International Council of Shopping Centres. "We are most advanced in Calgary, where we hope to open in 2007."
Vancouver-based retail consultant Blake Hudema said the plans that the Caisse revealed Tuesday revives a plan it talked about four or five years ago to build a network of centres in Toronto, Montreal, Edmonton, Calgary and Vancouver.
"Then [the plan] went away for about four years," Hudema said. "Vaughan went through its birth, is the best way to put it. Word is they seem to be happy with it, and the rumour is [Vancouver is] back on the plate," Hudema said.
He suspects that Edmonton was cut from the plan because of the dominance that West Edmonton Mall and a new power-centre facility, South Edmonton Common, have in that market. Calgary is a natural location, however, because Ivanhoe Cambridge already owns property in the city.
Hudema said Montreal is also a natural expansion spot because the city has "scads of land" available for development.
British Columbia, which hit a record $47.2 billion in retail sales in 2004, would be a desirable location. The difficulty will be finding a site to put such a large shopping centre.
Canada-wide, retail sales rose to a record $30.4 billion in March, the 10th gain in 11 months, according to Statistics Canada.
In Greater Vancouver, Hudema noted that malls in the past have been built on sites that are peripheral to the city, such as Guildford Town Centre or Metropolis at Metrotown.
"But, industrial sites that have been rezoned can be purchased at a reasonable price. Where do you go in Greater Vancouver is the great question," he added.
A centre of one million square feet in size would need 50 to 60 acres of property, Hudema estimated, with a desired "epicentre" near the 200th Street exit of Highway 1.
Hudema said the Port Kells community on the boundary of Surrey has asked for a community plan, "but I don't think the Langley [municipalities] or [Greater Vancouver Regional District] would entertain a competing centre to existing town centres."
Hugh Kellas, the GVRD's director of planning, said that from a regional perspective, the GVRD board's preference would be to see any large development placed somewhere with good alternative transportation links so people can get to it "by some other means than the automobile."
Placing it, however, would be up to the community plans of individual municipalities.
Mark Startup, president of Retail B.C., said the Caisse's announcement shows that there is a sense of confidence in B.C. and Canada's retail environment. In the case of B.C., he added, forecasts hint at continued growth in the retail sector.
The Caisse is a "savvy investment vehicle," and the pension managers see potential in the Lower Mainland market, which is reassuring, Kevin Evans, B.C. vice-president of the Retail Council of Canada.
"Beyond that, I have some questions about the ability of the market to absorb something that large," because it already has the reputation for being over-retailed, he added.
Hudema said if the B.C. project emulates Vaughn Mills, Ivanhoe will build what the industry refers to as a "internalized power centre," a mall that collects a smaller number of medium to large stores in an enclosed environment.
Ivanhoe already owns the Lower Mainland's largest mall, Burnaby's Metropolis, as well as Guildford Town Centre in Surrey, Oakridge Centre and Richmond Centre.
However, a Vaughan-Mills-style mall would have a "super-regional" focus, attempting to draw customers from Vancouver Island, the Okanagan and Interior.
"That starts to spread the impact around such that [a super-regional development] is warranted," Hudema said. "It offers singular, unique tenants to a provincial market that you wouldn't find in a one-million-square-foot Park Royal or Pacific Centre."
He added that national expansion could have something to do with the tenants that Ivanhoe wants to bring to its Vaughan Mills development.
Hudema said Burlington Coat Factory, a major U.S. factory outlet store, plans on locating at Vaughan Mills, but has told Ivanhoe that it wants to have more potential locations for stores.
"As I understand it, Burlington is very desirous of Canada and Vaughan Mills, and is waiting for a chance to [better] justify its distribution," he added.
"We would like to get the ball rolling in the next four years," Gleeson said. "Vaughan Mills took eight years to get done, but now that the concept is in place, we are hoping things can go faster for the other malls."
dpenner@png.canwest.com
MALL SPRAWL:
Greater Vancouver is already home to three shopping malls that exceed one million square feet.
Fourth-place Coquitlam Centre comes close at 920,000 square feet.
Metropolis at Metrotown:
1.6 million square feet
Pacific Centre:
1.08 million square feet
Park Royal:
1.05 million square feet
Coquitlam Centre:
920,000 square feet
Ran with fact box "Mall Sprawl", which has been appended to the end of the story.
© The Vancouver Sun 2005