MCU14/0106 & OPW15/0001 Compiled Information Request Response

                                                                                                       Noosa Civic Expansion
                         28 Eenie Creek Road, Noosaville and parts of the road reserves of Hofmann Drive and Walter Hay Drive



3.13        Turnover Productivity
            “The retail analysis suggests that turnover productivity among food retailers is expected to decline
            sharply, while turnover productivity for non-food retailers is expected to increase due to the Noosa
            Civic expansion.
            Turnover productivity in non-food retail is not considered likely to increase as a result of the
            development.

            Information Required:
            25   Reviewed analysis of expected performance of the expanded centre, particularly in
                 regards to the expected performance of non-food retailers post expansion.”
            RESPONSE
            The average trading level of the centre post-development is expected to decline, from $6,926/m2
            in 2014 to $6,865/m2 in 2018.
            Food stores are expected to experience a 22.7% decrease in average trading levels ($11,751/m2
            in 2014 to $9,084/m2 in 2018), while non-food stores are forecast to experience a 10.5% increase
            in average trading levels over the same period ($5,392/m2 to $5,956m2).
            Urbis concludes the expected performance of the expanded centre is reasonable, and
                 “…is simply due to a combination of competitive influences, particularly amongst the higher
                 trading supermarkets, the improved range and variety of non-food stores, the lower weighting
                 attributable to the lower trading DDSs, and the possibility of higher trading mini-majors.”
            Please refer to Appendix B – Retail Needs Response for further details.

3.14        Impact on Centres Network
            “Table 8.5 of the Retail Need Assessment estimates an overall impact of $129M across identified
            centres but estimates the increase in turnover for Noosa Civic from the expansion as $149.6M,
            leaving approximately $30M of unallocated impacts.

            Information Required:
            26   Clarify whether the quantum of impacts resulting from the expansion of Noosa Civic
                 have been fully reflected in the impact analysis reported in Table 8.5 of the retail needs
                 assessment, which appears to only allocate $129M of the anticipated $149.6M in
                 increased turnover.”
            RESPONSE
            In its Retail Needs Response (Appendix B), Urbis advise as follows:
                  “The assessed $129 million overall impact, is equivalent to the uplift in turnover forecast for
                  the Noosa Civic development in the development year of 2018. As outline on page 106 of
                  the DA report, this is based on an assume 'do nothing' case (i.e. Case 1) with turnover
                  forecast at $167 million , as compared with a post development scenario (i.e. Case 2) with
                  total centre turnover forecast at $296 million (in constant $2014).
                  The derived uplift of $149.6 million noted in the Information Request is the uplift relative to
                  current turnover in 2014 (i.e. $147 million). The difference of $30 million is due to the growth
                  forecast over the period 2014-2018, due to population growth (1.7% p.a.) and real spending
                  growth (1.6% p.a). In other words, the centre would be expected to experience natural
                  growth over the pre-development period and this is captured in the 'do nothing' forecast.”

3.15        Target Closure
            “5,400m2 of additional DDS floor space is proposed and has been indicated to be a Target store.
            This will likely see the closure of the Target Country (1,360m2) at Noosa Junction and represent

June 2015                                            Cardno HRP                                                           18