Kardinya Park Shopping Centre

Jim Tsagalis was approached by the Landlords of the Kardinya Park Shopping Centre, which at the time was being managed by First Pacific Davies.

The leasing had stalled and at the time of being engaged as Landlords’ Representative, there were only three out of 45 specialty tenants who had signed Leases. Jim’s role was to take over the Asset Management of the project including liaising and giving direction to the Project Manager, Builder, Architect, Leasing Agent and Managing Agent.

The Landlord was faced with substantial penalties for the non delivery of the project within agreed upon time parameters with the major tenants, Coles and Kmart.

Whilst Jim’s role was to primarily oversee the project as Development Manager, he also undertook personal leasing and project management roles, resulting in the Shopping Centre opening within a four month period with 38 Leases executed and 90% of those tenants occupying the premises at opening. This had the effect of offsetting all penalties mentioned above and also resulted in a substantial increase versus feasibility of rents being achieved. Part of Jim’s role was to reappraise the feasibility with substantial changes being made to both the rent forecasts and capital budgets.

This was appraised in concert with committed building and project management expenditure, which was negotiated to meet required rates of return and forecasts.

A significant part of Jim’s involvement was also to negotiate with existing retailers whom had to be relocated, with the substantial impediment being that there were no redevelopment clauses included within their existing Leases.

As a result of Lease Equity’s involvement, the Centre was fully leased well above budgeted rental.