Lendlease has started working on the A$240m ($169.9m) redevelopment of Macarthur Square shopping centre in south-western parts of Sydney, Australia.

The project will add around 16,000m² of floor space to the shopping centre and thereby help it to expand its offerings for retail, fresh food and dining.

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While the existing stores for David Jones, Target and Woolworths will be refurbished and/or expanded, new stores will be opened for Coles, Aldi and Harris Scarfe. The redevelopment project will also add around 550 new car spaces to the shopping centre.

"The redevelopment will also stimulate the local economy, boosting employment and offering further opportunities to retailers."

Nearly 45 speciality stores along with a fresh food market hall and a collection of new dining offers adjacent to a spacious dining terrace have been planned under the project, which is expected to strengthen the position of the shopping centre by expanding its diversified retail mix.

Lendlease retail head Gary Horwitz said: "Lendlease and GPT Group founder Dick Dusseldorp had a vision for the Macarthur region when, in 1979, he opened the doors of a newly built shopping centre to provide luxury and convenience right on the community’s doorstep.

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"The redevelopment will also stimulate the local economy, boosting employment and offering further opportunities to retailers."

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Construction under the redevelopment project is likely to continue for around two years. However, Lendlease expects the main extension works to be done by late 2016.

Design, project management and construction works under the project will be handled by Lendlease’s Building business unit.