Caneland cinema expansion on hold as Leadlease applies for extension

Developers have applied for another, longer extension to Caneland Central’s long-awaited expansion that includes a cinema and dining precinct. Read why they want more time.

Caneland Central’s highly anticipated but long-delayed cinema expansion is likely to be pushed back again as developers review Covid-19’s impact on retailers.

Centre owner Lendlease has applied to Mackay Regional Council for a five-year extension to its development application that will transform the current car park into another arm of the shopping mall.

The existing plans include the long-awaited V-Max cinema and ground-floor restaurant and dining scene over 5500sq m.

But any development works are not expected for several years.

“In 2020, the Covid-19 pandemic caused disruption to all industries and sectors, as governments introduced lockdowns and other public health measures,” documents before council state.

“It is well documented that lockdowns and public health measures inadvertently resulted in the reduction of foot traffic in shopping centres and retail hubs throughout Australia, during the 2020-21 period.”

An artist impression of the Caneland Central development.

The centre remains up for sale with estimates predicting it will go for up to $350m, the existing development approvals included in the offering.

Lendlease argues the state government declared the pandemic an “applicable event” that allowed developers to seek extensions or suspensions of planning framework periods – an element of Mackay Regional Council’s planning scheme.

The company said it was granted two six-month extensions, on July 8, 2020, and September 1, 2021, effectively adding 12 months to the relevant period which is set to lapse on June 19, 2022.

Renderings and floor plans for the planned Caneland Central expansion that will include a V-Max cinema and restaurant dining precinct. Picture: Contributed

“With the reopening of state and international borders and easing of public health measures

beginning to occur in 2022, customers are starting to return to shopping centres,” Lendlease states.

“However, the market and customer spending behaviour have shifted over the course of the Covid-19 pandemic; as such, the applicant is seeking to extend the relevant period/currency period.”

Lendlease has asked for a five-year extension until June 19, 2027 to “allow sufficient time to undertake its planned development program for the Caneland Shopping Centre”.

It plans to review the tourism market and consumer trends post Covid-19, arguing there “still remains a transitionary period before the influx of international/domestic arrivals”.

Caneland Central’s 5500sq m expansion will stretch over the existing carpark on Mangrove Rd. Picture: Contributed

“Stabilisation of trading is vital and demonstrates confidence in consumers returning to the centre, to be able to inform the future trends of consumer spending,” documents state.

“An assessment of the Caneland Shopping Centre’s performance, including the post Covid-19 pandemic strategy for the major tenants, will play a key role in determining how efficiently the development program progresses.

Renderings and floor plans for the planned Caneland Central expansion that will include a V-Max cinema and restaurant dining precinct. Picture: Contributed

“The outcome of the strategy may include downsizing or exiting the centre, and the Applicant will need to consider these implications on the Caneland Shopping Centre as a whole.”

Lendlease will also “investigate market opportunity”, arguing it was “necessary to assess potential new entertainment opportunities” post-Covid to ensure a “modern and relevant entertainment and leisure offer is provided”.

“A review of operator performance throughout the Covid-19 period will be required to understand who the key players in entertainment are in the present market,” documents state.

“Supply chain and procurement conditions in the market will need to stabilise before determination of delivery date for the precinct.”

Documents further acknowledge the impact Covid-19 has had on the building and construction industry.

Caneland Central centre manager Simon De Barro said management was working closely with retailers.

“Caneland Central’s visitations are back to pre-Covid levels and as always, we continue to work closely with all our retailers and support them on a case-by-case basis,” he said.