MCU14/0106 & OPW15/0001 Compiled Information Request Response

5 Needs Analysis

5.1 TARGET CLOSURE

Information request:

‘5,400 sq.m 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 (1,360 sq.m) at Noosa
Junction and represent an adverse impact in the order of $4.5M-$5M on Noosa Junction.
The capacity for a centre to relet or reconfigure a large tenancy may be limited’.

Response:

The Target store at Noosa Junction is understood to have opened in June 2010 in order to get a foothold
in the Noosa area. The store is very densely stocked and performs well, despite its limitations. The store
is clearly under-sized for the market and Target has identified the need for a full line store in the area.

In the event that Target chose to not renew its lease the tenancy would obviously become available for
another retailer(s), or perhaps another use.

We note that the Target store is part of Noosa Junction Plaza, and has direct access to/from Lanyana
Way, a short distance from the Noosa Fair Shopping Centre, in the heart of the Junction.

Noosa Junction Plaza also has frontage to Sunshine Beach Road which is the main street in the Junction,
as well as Noosa Drive which is the primary access route to Noosa Heads. The general location therefore
has good attributes.

The nature of the centre and its location, together with the configuration of space, should not present any
re-leasing issues, if indeed Target chose to not renew their lease.

In relation to the question of whether a Net Community Benefit (NCB) would ensue if Target relocated
from Noosa Junction to the proposed development, we note that consumers would be provided with a
modern, full line Target store offering a far greater range than is currently available in Noosa. The
nearest full line Target DDS is in Maroochydore. Consequently, although there may be some customers
who are negatively affected, overall, the broader community would be better off due to the greater range
that would be available in the Noosa area.

URBIS
NOOSA RESPONSE REPORT - RETAIL ECONOMICS JUNE 2015 V2 NEEDS ANALYSIS 1 5