Centro pulls out of $290m plan
[size=0.92em]ANNE MATHER
[size=0.85em]September 20, 2008 12:00am
[size=0.85em]THE $290 million redevelopment of Hobart's gutted Myer site is in jeopardy after one of the key players pulled out.
The State Government is looking for investors to fill the void, including rival department store David Jones, after Centro Property Group yesterday revealed it was pulling out of the project.
Treasurer Michael Aird said he was not aware of Myer's plans for the site after Centro's decision.
Mr Aird said Myer was an integral part of the CBD, but there was scope for other retailers to move in if Myer opted out.
"The Tasmanian Government has not had any discussions with Myer about their plans to rebuild," he said yesterday.
"I would expect Myer to keep us informed of their intentions. Myer is an integral part of a future, vibrant CBD.
"I would be keen to meet any potential investors in the CBD, including David Jones.
"Any retailer coming to Tasmania would have a comparative advantage in terms of investment and return.
"We have the strongest economy, high consumer spending and record investment."
Centro had planned to refurbish the Cat & Fiddle Arcade and jointly redevelop the Myer site.
The Liverpool St Myer site, which has been a hole in the ground since it was gutted by fire a year ago, is owned by the Retirement Benefits Fund and leased to Myer.
The Fund was going to redevelop the Myer site in partnership with Centro.
Myer and the RBF could not be contacted yesterday.
Centro said its decision to pull out of the redevelopment was based on the current economic climate.
Centro Southern Tasmanian manager Caroline McGovern said it was "not the right time" for the group.
"Centro is not in a position to progress with those plans at this stage ... due to the current market situations," she said.
Centro, which owns the Cat & Fiddle Arcade and is the second biggest shopping centre owner in Australia, reported a $2.06 billion full-year loss last month and is battling to repay billions of dollars of debt.
Ms McGovern said Centro had originally wanted to redevelop the entire Cat & Fiddle Arcade block, but the plans would be placed on hold until economic conditions improved.
"Now the Cat & Fiddle will remain as it is until things look a bit brighter," she said.
Tasmanian Chamber of Commerce and Industry chief executive Damon Thomas said the Centro decision came as no surprise given the group's global sell-offs to reduce debt.
"This is hardly a surprise given they have been selling off established commercial properties," he said.
Mr Thomas said the Hobart community needed to know soon about the future of the derelict site.
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