First retail tenant locked in for Ipswich CBD redevelopment and when cinema complex will restart

The first retail tenant for the $250 million project has been secured and other businesses are close to signing on the dotted line. This includes a company looking to set up a gym and a yoga studio.

Ipswich City Council is confident an operator for its CBD cinema complex will be locked in by late October.

The first retail tenant for the overhauled Ipswich mall has been locked in and an operator for the CBD cinema complex is set to be finalised by the end of October after months of setbacks.

Work is progressing on the $250 million redevelopment of the city centre but Covid lockdowns and ongoing restrictions have disrupted negotiations with businesses looking to set up shop in the new development.

Finding an operator to run the council’s revamped cinema complex, which previously housed Birch Carroll and Coyle, has proven difficult due to the huge impact the pandemic has had on the industry.

Council staff have moved into the $125 million administration building in the Nicholas Street Precinct.

It seemed as though United Cinemas would take over the complex but rejected leasing the building late last year.

The upgraded eight-cinema facility is seen by the council as integral to the success of the Nicholas Street Precinct.

The chairman of the project’s retail sub-project steering committee James Hepburn told councillors a lease is expected to be executed in late October.

Several prospective operators submitted expressions of interest earlier this year with tender documents released in June.

This process closed on August 4.

Only once a lease is locked in will funding be released to refurbish the site.

“I am advised that all shortlisted parties have submitted offers which I personally think is absolutely fantastic news,” Mr Hepburn said.

It is expected to be up and running by early next year.

One tenant, which would be located in the ‘Eats’ section of the precinct, has been locked in but exactly what it is cannot be revealed yet as it is commercial in confidence.

Mr Hepburn said the shopfront is expected to be handed over to the business in September or October and it would likely open before the end of the year.

Two other deals have been approved by Acting CEO Sonia Cooper with legal checks now being done and agreements being finalised.

“The two deals are three different brands,” Mr Hepburn said.

Ipswich Central Redevelopment Committee chair and councillor Marnie Doyle.

“One is a leisure operator who has two brands. One is a large well known gym and the other is a yoga studio.

“Those will sit above the Eats building. The second operator is a retail services operator known reasonably well locally and is also a great national brand and they will be moving into the Metro B building.”

The Eats sections is forecast to open in October and works to Metro B are set for completion by the end of the year, with an opening date slated for Easter next year.

A development application to extend the revamped Commonwealth Hotel is being prepared to be submitted in the next few weeks.

“The agreement for lease has also progressed quite well (for the hotel),” he said.

West Moreton Hospital and Health Services entered into a licence with the council to use the lower ground of the ‘Venue’ building to set up a large vaccination hub, which opened in July.

The licence period ends on December 30.

Ipswich Central Redevelopment Committee chair Marnie Doyle said there was a lot riding on this redevelopment, including the future of major projects seen as crucial to future of Ipswich.

The cinema complex has been vacant since 2019.

“I like everyone (am) I guess a little bit frustrated with the pace things are progressing but this is a very difficult economic environment that we’re in at the moment,” she said.

“The market keeps shifting in relation to negotiations with prospective tenants as to who has got the bargaining power and what the expectations are around capital incentives.

“Without a thriving CBD within Ipswich it will be very hard to advocate and be successful for the extension of (the Ipswich to Springfield train line).”

Project manager Greg Thomas wrote in a report to councillors that there were several hurdles in the way.

“The retail leasing program continues to face challenges including but not limited to Covid-19 impacts and the pace of the retail market rebound, the ongoing lockdown in New South Wales and Victoria causing a number of prospective tenants to lose focus on new space due to site closures and relating operational issues, the securing of anchor and other tenants and the attractiveness of the offer from the lessor (council) in the current market conditions,” he wrote.

“With refurbishment works underway on both the Eats and Metro B buildings, the conversion of endorsed (heads of agreement) into legally binding agreements for lease remains a critical outcome.”

Read more stories by Lachlan McIvor here.

Originally published as First retail tenant locked in for Ipswich CBD redevelopment and when cinema complex will restart