Darwin


The airport itself employs 1,600 people, representing a large consumer base in its own right, and accounts for about 2% of the Northern Territory’s Gross State Product (GSP) as it stands today. International tourism is on the rise, too.


Darwin is the closest Australian international airport to Asia, and NTA recently signed an agreement with the Qantas Group to expand its airport facilities to develop an international hub for its budget carrier, Jetstar. All of these positive indicators, underpinned by a population with a high disposable income, “make a lot of sense for retailers”, Kew said. Meanwhile, the airport continues to develop its own critical mass. There are now three different hotel facilities on airport property, providing 550 accommodation rooms.


Hence, DIA has engaged Cundall, a


renowned Australian ESD engineering company, to advise on how AXIS can shine. Tweaking of the design to allow for innovations like rainwater harvesting and solar energy generation are just some of the enhancements that Baynes believes will “future proof” the park.


Such measures, he hopes, will also appeal to the corporate social sensibilities of the brands he aims to attract. “We are taking a high level of corporate responsibility, as do our (prospective) tenants,” said Baynes, citing the likes of supermarket chains Woolworths and Coles, and retail giant Freedom – some of Australia’s biggest corporate names – who are all “very concerned about their carbon footprint.” Kew says the airport company remains “very much committed” to the AXIS project, believing that a centrally located business park presents a real opportunity to develop significant revenue.


GLOBAL AIRPORT CITIES


The park’s customer base will be as diverse as Darwin’s economy itself, Kew believes. Darwin may not have a financial services sector or heavy manufacturing, but it has a large percentage of Territory and Federal public servants, and 12% of Darwin’s population is comprised of Australian Defence Force related personnel. With the price of commodities


booming worldwide, the Northern Territory’s mining sector is gathering steam, while the oil and gas sectors are burgeoning, he said. There is virtually no unemployment in Darwin, and the residents have money to spend. “The average family income in Darwin


is 15% more than Melbourne, Sydney or Brisbane,” says Kew. “People come here to work – it’s quite a different population mix and economic profile than elsewhere. The economy is strong, and there is increasing demand for premier office space in the CBD.”


In other major infrastructure projects on airport property, DIA has already built offices for the Federal Government, and is building new facilities for the Australian Federal Police. Darwin may be geographically isolated but that is another factor in favour of the AXIS concept, given the cost of moving freight to or from other capital cities. “People appreciate the connectivity of doing business at the airport,” Kew said. “We see real interest in what we would call non-aeronautical business, as well as more traditional aviation business,” says Kew. Ross Baynes, who says he was hired “to get deals done”, may soon have some good news to tell. In the last four months, says Baynes, the enquiry register has tripled – partly through marketing, and partly through the direct approach. “This tells me the interest is back in the marketplace, both from local and national (prospective) tenants.” “We always want to do more faster, but it


is important to develop the airport business in a sustainable way, to produce long-run returns that provide real value to our shareholders (who are 100% Australian owned being predominantly Australian Super Funds),” adds Baynes. Ian Kew shares his optimism. “I’d


be disappointed if we didn’t have a number of major retailers secured this calendar year, and construction started by middle of next year,” he enthused, although adding that any deal will be carefully considered.


Issue 1, Volume 5 49


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