Mirvac to Close Toombul Shopping Centre following Floods

Mirvac have taken the extraordinary and difficult decision to permanently close the Toombul Shopping Centre following irreparable damage from the recent floods in Brisbane.

A spokesperson for Mirvac has reported that the company had “undertaken extensive assessments to understand the full impact of the flood damage at Toombul shopping centre”.

“As previously advised, there has been extensive damage to the centre across all major services, base building services and infrastructure,” the spokesperson said.

“After taking into account the current and potential future impacts of flooding on the site, it is impractical and undesirable to reinstate the centre to how it was prior to the flooding damage.

Documents sent to retailers said that the centre’s electricity, fire, air-conditioning systems, lifts and escalators “all need significant repairs or replacement and mould is a significant issue”.

“Therefore all areas of the centre are not fit for occupation under the relevant building codes and reinstatement of services to allow [parts of the Centre] to trade independently of ground level is not possible at this time,” the letter read.

“As a result, to provide our retailers with certainty we have taken the difficult decision to close Toombul Shopping Centre and terminate all leases,” the correspondence said.

Mirvac have not provided any formal advice as to the implications of the decision. In its last update to the market, Mirvac advised that the closure would have no impact to FY22 operating earnings however this decision will clearly have an impact beyond into 2023 and beyond.

Mirvac acquired the Centre in May 2016 for $226m and was last valued at $303m in December 2021.

The Centre has approximately 46,000 square metres of gross lettable area comprising Coles, ALDI, Kmart, Target, BCC Cinemas, and approximately 150 specialty stores and kiosks.

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