Gold Coast’s Nightquarter at Helensvale to shut down after landlord Scentre Group hikes rent
Vendors, customers and music fans are reeling after the owners of the popular Nightquarter markets made the shock decision to close its doors. The husband-and-wife team said they were left with no choice.
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NIGHTQUARTER’S owners have dropped a bombshell, revealing the popular food and live music hub at Helensvale is about to shut because the site’s landlords are demanding a rent increase of more than 100 per cent.
The Bulletin understands the extra amount being demanded by the landlords – Westfield shopping centre operator Scentre Group and the State-owned Queensland Investment Corporation which jointly own the land at 1 Town Centre Drive – would drive the rental to well over $400,000 a year.
The venue has been opening just two nights a week.
The dispute has forced NightQuarter markets owners Michelle Christoe and Ian Van der Woude to walk away from what has been a huge success since it opened next to the Westfield Helensvale shopping mall and Helensvale station in late 2015.
“We would have gone broke if we accepted what Scentre were offering,” Ms Christoe said.
Scentre says in its annual report that its asset management strategy is to grow property income through annual rental escalations. Approached for comment, Scentre Group declined to answer questions about rent or its plans for the site, citing confidentiality.
Nightquarter attracts up to 5000 people on the average Friday and Saturday night, with up to 7500 showing up for festivals and special events.
LOCALS PREFER TO PARTY IN THEIR SUBURBS
The decision to shut the NightQuarter gates for the last time on February 1 has rocked the 50 “direct’’ staff and will shatter the hundreds of stall operators and their staff, entertainers and thousands of people who have been going there every week for the food and live music.
The markets have given a long list of established and up-and-coming musos a venue to show their talent, including the likes of the Gold Coast’s ARIA award-winning singer-songwriter Amy Shark.
Mr Van der Woude said the increase, combined with more than $500,000 in work required to satisfy noise requirements, had rendered the thriving business unviable.
“We had an agreement for an extended term at the site subject to agreement on revised rent,” he said.
“The landlord was seeking more than double the rent for an extended five-year term. “Michelle and I are disappointed and saddened that we weren’t able to keep NightQuarter at Helensvale.
“We have invested so much into the venue both financially and emotionally over the past three years.”
GALLERY: NIGHTQUARTER FESTIVAL PREVIEW
The husband-and-wife team launched NightQuarter with its $3 entry fee and array of world cuisine, bars, market stalls and entertainment as “a festival every weekend” in November 2015, and it has been successful from the beginning.
The entrepreneurs say they ploughed millions into making it one of the most sought-after mid-sized live music venues in Australia and the only one of its type on the Gold Coast.
Since opening in 2015, the venue has hosted more than 50 concerts with major touring acts, ranging from RUFUS, SAFIA, UB40, Ministry of Sound, and The Angels through to Amy Shark and The Cat Empire.
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NightQuarter’s owners say the venue has sold 55,000 tickets and attracted some 1.5 million to ticketed events since opening.
While investments in state-of-the-art equipment ensured quality performances for music fans, the venue was not universally popular, with noise complaints meaning The Paddock gig area would have to be enclosed to meet noise requirements and retain council approval.
But Ms Christoe said it was the proposed rent hike on the land – more than double the $200,000-plus they were paying – that forced the decision to close.
“We looked at all the options, but in the end we needed to make a decision that was in the best interest of the company, our employees and our community of stallholders,” she said.
Scentre Group has interests in 41 Westfield shopping centres, which it describes as “living centres (that) are an essential part of the community’s social and economic fabric”, and has total assets under management of $52.8 billion.
Scentre launched redevelopment projects worth more than $1 billion in the September quarter alone, and added Westfield Coomera to its portfolio in November – another site it co-owns with the Government’s QIC.
According to its last annual report, its asset management strategy is “to grow property income through contractual annual rent escalations”, and it increased statutory profit by 41 per cent to $4.2 billion in FY17.
NightQuarter neighbour Westfield Helensvale has annual retail sales of $376.09 million, the highest in Australia for shopping centres of its size for two consecutive years.
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Before making their decision, Ms Christoe and Mr Van der Woude scoured the city for an alternative site but were not able to secure anything suitable in time.
They now face the daunting prospect of giving the bad news to 50 direct staff as well as hundreds of vendors, contractors and performers and thousands of loyal locals who have made NightQuarter their weekly fixture.
Ms Christoe said she felt privileged and humbled by the support shown by many local artists, the broader music community and media outlets that helped get them started in November 2015.
The pair hoped the community would turn up over the next two weekends to say goodbye before they dismantle NightQuarter, leaving the bare paddock that was there before.
“This business is just me and Michelle, we’re not a big group. It’s been wholly funded by her and I – we’ve put our life savings into this,” Mr Van der Woude said.
“This is quite devastating. This is going to hurt.”
Last drinks: What’s on at Nightquarter before it closes
Friday: Nightquarter Spectacular, Roving Fire, Electrik Lemonade, Emily
Brieger, Obi Sun and Mudslide
Saturday: Summer Ice Cream Festival
January 25: Patrick Topping & Eats Everything — ticketed Live in The Paddock. The Nightquarter market features a roving fire show, Liv Heyer, Harry J
Hart and Three Piece Band.
January 26: Australia Day Fest BBQ, Beats and Beers.
February 1: UB40 featuring Ali & Astro supported by local DJ Connor and
Bobby Alu — ticketed in The Paddock. Nightquarter Markets will feature for its
last night a Roving Fire spectacular, Lock n Load, Harry J Hart Band, Obi, Elska
on the harp and more.
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