06 Mar 2017

AMP Capital to redevelop two iconic Perth shopping centres

AMP Capital has unveiled its latest plans for two centres in Perth: Garden City and Karrinyup. These redevelopments are leading edge, world-class retail, leisure and entertainment destinations.

AMP Capital to redevelop two iconic Perth shopping centres

AMP Capital has unveiled its latest plans for two centres in Perth: Garden City and Karrinyup. These redevelopments are leading edge, world-class retail, leisure and entertainment destinations.

AMP Capital Shopping Centres’ Garden City and Karrinyup lead the pack in Perth—Garden City dominates the regions south of the Swan River and Karrinyup is the most powerful centre serving the inner and middle suburbs to the north.

For over a decade, Garden City Shopping Centre has been one of Australia’s top centres. It has hovered around in the top 5 on the ‘Big Guns’ rankings in terms of both MAT/m2 and Specialty MAT/m2.

In 2016, Garden City was 4th on the MAT/m2 ladder with a massive $10,296. On the Specialty MAT/ m2 ladder its performance is nothing short of staggering—in the past decade Garden City, on the Specialty MAT/m2 rankings, has been in the top 4 Australia-wide. For the last nine of those years, Westfield Sydney, the epicentre of the Australian retail scene, has held first place continually.

In terms of ‘regional shopping centres’, when measured over a decade, Garden City has been Australia’s best performing centre for specialty retail. In 2016, its Specialty MAT/m2 was a staggering $15,537, eclipsed only by Westfield Sydney and Chadstone.

Visit the centre and you’ll feel the pulse of the place; it’s a centre that is ‘owned’ by its customers and its positioning as the premier retail destination in Western Australia draws those customers from afar. With the exception of a few international luxury brands, there’s nothing in the Perth CBD that isn’t at Garden City. Garden City has the largest Apple Store in the Southern Hemisphere and one of only two in the state – and that goes for Zara as well. It’s got the whole complement of the Australian fashion scene and both Myer and David Jones are present.

Garden City, owned by AMP Capital Diversified Property Fund, is unrivalled in WA. It is the state’s number one retail destination and the figures prove it.

The centre is now poised to undergo a massive $750-million redevelopment that will see it emerge as one of the most powerful centres with a design and tenancy mix placing it in a leading-edge position in the ranks of Australian super-prime regionals.

The redevelopment takes Garden City from its present 72,221m2 to over 115,000m2, almost doubling its size. In terms of shop numbers, it increases from 190 to over 380.

Both department stores will be represented; there will be two new full-line supermarkets, a brand new cinema complex, along with a fresh food precinct, which takes inspiration from, and indeed goes to the next level to that achieved at Macquarie Centre and Pacific Fair.

But it’s the style of the new Garden City that is most impressive. AMP Capital has worked closely with the City of Melville and the West Australian Planning Commission and produced a centre that is leading edge, not just in Australian terms, but also by any of the highest international standards.

A main street has been developed that is an integral part of the centre itself. It’s a street providing a casual dining and leisure precinct richly landscaped with exotic foliage, full-sized palm trees and extensive water features, exploited by a mass of alfresco dining spaces flanked by restaurants, cafes, bars, leisure and entertainment outlets which all set the mood for what’s ‘inside’. The street is flanked by the City of Melville’s existing civic centre, and a new library and community facility.

Karrinyup Shopping Centre is to the north and is the major centre serving the ‘middle suburbs’ on Perth’s northern side. It’s been the dominant player here since it opened in September 1973. At that time, with both Myer and David Jones, a Woolworths supermarket, a food hall and some 70 specialties, it was the largest centre in WA. Today, at 60,000m2 it’s the state’s third largest and its trading power is as good as it gets.

Karrinyup has an MAT/m2 of $8,000 with a Specialty MAT/m2 of $12,260, placing it in the top 10 of the Australian Big Guns. In terms of fashion in WA, Karrinyup has always held the top spot; its trade area is affluent and stylish, and fashion retailers have always favoured it.

Karrinyup, owned by UniSuper, is located 12 kilometres from the Perth CBD and around 3 kilometres from the affluent and prestigious coastal suburbs. Its Total Trade Area of 525,800 is expected to rise to 591,300 by 2026, while retail spending in the Total Trade Area is presently $7.46 billion, expected to rise to $12.12 billion in the same period – an annual growth rate of 4.1%.

AMP Capital research shows there is a strong desire amongst the local community for a redevelopment; it’s an affluent community, well-travelled internationally and fully aware of state-of-the-art shopping. There is a need for a wider range of fashion and accessories, and a demand for the international fast fashion retailers as well as an improved fresh food offering.

From 59,715m2, Karrinyup will almost double in size, expanding to 113,000m2. The $700-million redevelopment produces a world-class centre with a uniquely Perth flavour. It’s a stunning design, fitting, not just for the Perth shoppers but for the international labels it will no doubt attract.

There is space for the large-format fashion retailers, additional supermarkets, a host of well-known brands together with an entertainment and lifestyle precinct, which will not simply change the nature of the centre, but also the suburb as a whole in terms of what the region has to offer.

There’s a ‘main street’ presentation at the external face of the centre consisting of a large Piazza, a Corso, water features and rich landscaping providing the setting for an entertainment and leisure offering featuring the recently announced HOYTS cinema complex, and some of Perth’s best food and beverage operations. A huge alfresco component is an integral part of this precinct, exploiting one of the best climates in the world for this type of leisure activity.

These key elements, the interaction with the community, the feedback from the locals, the close working relationship between the developers and the councils have produced two stunning designs for Garden City and Karrinyup. What will emerge will change the whole tone of Perth retail. They are developments totalling some $1.5 billion, providing some 5,000 new jobs during construction and a further 5,000 new permanent retail jobs on completion.