Retail Feature SPECIAL REPORT - Business News
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Retail Feature
SPECIAL REPORT
F E AT U R E
Retail
Key takeaways
• Circa $5bn WA
retail project
pipeline
• Five big projects
worth $3bn yet to
proceed
• New dining and
entertainment
precincts trending
• Services, residential SENSORY: Ross Robertson says Perron Group started its Belmont Forum revamp in 2015, after recognising the need
next stage to offer a variety of shopping experiences. Photos: Gabriel Oliveira
Shopping for experiences
New retail property developments are driving offerings that capitalise on lifestyle needs,
but five of the biggest projects are yet to push the button.
the new Fresh Food precinct ear- Group, which is investing about restaurants and the revamped with the top four (ranked by cost)
lier this month. $1 billion to expand three of its Events Cinema at Whitford City yet to formalise project timelines
Comprising 11 independent Perth centres. had led to a significant increase (see page 22).
food outlets, the precinct includes Scentre Group completed the in customer traffic. These comprise Karrinyup
a specialty butcher and seafood first stage of its Westfield Whit- “We are in an extremely com- Shopping Centre, Garden City,
operator, as well as a new Coles, ford City redevelopment last petitive environment, with Westfield Stirling and Galleria
and follows a revamped dining year, investing $75 million in multiple bidders competing for Shopping Centre. Details on the
precinct, which opened in 2017. the revitalisation of its dining the consumer dollar, be it from next stages of Westfield Whitford
Mr Robertson said Perron and entertainment hub, which the digital space or simply other City’s transformation are also yet
started its renewal of Belmont included the introduction of a sectors,” he said. to be announced.
Katie McDonald
katie.mcdonald@businessnews.com.au Forum in 2015, after identifying microbrewery, as well as the cre- “The retailer and product mix This totals about $3 billion
the need to offer a variety of ation of a games arcade featuring we offer is broader than ever worth of projects, out of the
11-PAGE FEATURE shopping experiences. a bowling alley. state’s current pipeline of approx-
before and has evolved to include
“Fresh food is one of those The retail group has also spent all elements of lifestyle and imately $5 billion.
W
ITH the click of a products that shoppers like to $350 million at Westfield Car- wellbeing. Business News reached out to
mouse or touch of connect with,” Mr Robertson told ousel on a rooftop dining and “As a business, Scentre Group has the owners behind five of the
a screen, it’s easy to Business News. entertainment space and a new shifted away from the traditional biggest projects, who said future
scroll through an online cata- “They like to touch and feel it, fashion mall, which is set to open concept of shopping centres. dates were yet to be confirmed.
logue of retailers and products, knowing they’re not only select- August 30. “We call them ‘living centres’. This year is a busy time for
shopping without the need to ing the freshest ingredients but It will become the state’s larg- “Our customers are experience retail project delivery, with more
browse physical stores. are also buying quality, locally est shopping centre as ranked by focused, coming into our centres than 98,000 square metres of
But there are certain things that sourced produce. gross lettable area on the BNiQ for much more than shopping; space to be added to market.
the online world can’t replicate, “Our aim was to achieve a Search Engine (see page 28). our centres are places where Among them is the $350 mil-
and Perron Group chief execu- best-in-class fresh food shopping The organisation has a similar people come to be entertained, lion redevelopment of Mandurah
tive Ross Robertson is banking experience, along with a vibrant vision for Westfield Stirling (for- relax, dine, socialise and shop.” Forum, which opened in March
on customers’ desire for sensory dining precinct that would stim- merly Innaloo), where it plans a and introduced major retailers
experiences being among them. ulate an extended night-time $600 million expansion, though Projects David Jones and H&M to the
The Perth-based property economy.” a start date is yet to be finalised. Major retail developments centre.
group’s $65 million redevelop- Disrupting the traditional Scentre Group general manager valued at almost $5 billion have Other projects include the $150
ment of its Belmont Forum centre nine-to-five shopping centre par- development Roy Gruenpeter been completed, are under way, or million DFO at Perth Airport
culminated with the opening of adigm is top of mind for Scentre said the introduction of 14 new are planned for Western Australia, and the $100 million Midland
FEATURE
Our aim was to achieve a
best-in-class fresh food shopping
experience along with a vibrant
dining precinct that would
stimulate an extended night-time
economy - Ross Robertson
Gate extension, as well as Plaza hotel openings and new student
Arcade’s $6.5 million makeover accommodation in the east part
with new anchor tenant UNIQLO. of Perth.
The first stage of Raine Square “There’s also been (the com-
is also due for completion next pletion of ) Yagan Square and
month, with owner Charter Hibernian Place that offer a dif-
Hall investing $75 million into ferent experience, that speak to
updating its dining, retail and an audience at night. There are
>98,000sqm
entertainment offerings. more reasons to visit the city
It forms part of a larger $150 now.”
million three-stage project, with Mr Tsagalis said Optus Sta-
plans for a revamped Murray dium, especially with the opening
Street fashion precinct opening of Matagarup Bridge, had been
next year, and the development of another positive for the city, with RETAIL SPACE ADDED TO MARKET 2018
The Royal Hotel (to open in 2020). many event-goers now passing
Charter Hall head of office through the CBD.
REDEVELOPMENT: Westfield Carousel will overtake Lakeside Joondalup as WA’s largest
development Andrew Borger said “We’re starting to see some
with all the neighbouring devel- improvement,” he said.
shopping centre when its expansion opens this month.
opment, including Yagan Square “WA probably had a perfect
and the new Perth Busport, the storm of a significant pullback of “As consumers, we’re changing were the same, and at the time in driving shopping centre evolu-
group realised that site acces- investment, and the high-low of our shopping habits,” Ms Manifis found that Lakeside Joondalup tion further.
sibility and connectivity (both the boom-bust commodities we’ve said. was the most diverse centre. Urban Development Institute
internally and into neighbouring had has amplified it. “The millennials eat out more “It’s a period of significant of Australia WA chief executive
precincts) would be critical to “Tenants are also trying to than the previous generations. change for retail; some major cen- Allison Hailes said WA’s strata leg-
ensuring Raine Square remained come to grips with whether they “And we now work differently tres haven’t had any investment islation was more than 30 years old.
relevant. need to be omni-channel; for (i.e. full-time working households), for nearly 20 years, and retailers Under its current form, most
“On completion, Raine Square some online has been a signifi- which changes how we use our are re-valuating how they best mixed-use developments were
will be a true late night, seven-day cant growth area, others say it’s personal time, we’d rather go out reach consumers,” Mr Stone said. governed under a single standard
retail, dining and entertainment a necessary evil they don’t make for a quick easy meal. It’s a natu- “There’s more emphasis on the strata scheme, Ms Hailes said.
precinct in the heart of the CBD,” money out of.” ral progression as to how we are design of centres, not trying to As a result, retail, commercial and
Mr Borger told Business News. evolving, so retailers and centre cram kiosks, (but) creating places residential uses generally fell under
“Online shopping is a popular Market owners are capitalising on that.” where people want to hang out. one scheme, often creating conflict
and convenient option for many. JLL head of retail Ann Manifis Ms Manifis said there was no “Currently it’s all about food over who funded what and who had
However, there is an appeal about said one of the biggest challenges doubt a push towards ‘experi- and beverage … so what’s the next access to different facilities.
the experience that bricks and emerging from the current spate ential’ shopping was under way innovation? The Community Titles Bill will
mortar shopping provides cus- of redevelopments was managing across the sector (see page 24). “I think it’s services, civic uses allow for the separate manage-
tomers that won’t go away, and that influx of new space within a “There are a portion of sales … libraries, full-floor medical cen- ment of different uses within a
this space considers that.” relatively subdued environment. conducted online, but at the end tres and health precincts.” single project.
Mr Borger said natural lighting, “It puts pressure on leasing, not of the day consumers still want He said using land for non-re- “We’re already seeing a move to
glass facades, greenery, and herit- only in the centres that are being to interact, we want to share the tail development, for apartments more mixed-use developments in
age restoration were some of the developed, but in the smaller cen- experience, connect with our or aged-care communities, was Perth where we don’t just have a
design elements the group hoped tres that are not,” she said. community,” she said. another likelihood. retail hub on its own; it will likely
would enhance the shopping “There are definite pockets of “Shopping centres provide the A current example of this is Iris incorporate medium or high-den-
experience. retailers finding trading condi- space to do that.” Residential, which has purchased sity residential components as
Lease Equity managing direc- tions very tough, but it’s not all Y Research principal Damian land within the Garden City shop- well as other commercial uses,”
tor Jim Tsagalis, who is heading doom and gloom across the whole Stone said while new enter- ping centre precinct for its $100 Ms Hailes said.
the leasing strategy for the $100 retail market.” tainment and dining precincts million 124-apartment tower, “Once the legislation is in place,
million Forrest Chase redevelop- JLL’s Q2 2018 retail market had emerged as popular strate- Amara City Gardens. we are likely to see more redevel-
ment, said the CBD had distinct report showed seasonally gies to lure people into physical Legislative changes such as opments of this nature as the
advantages, particularly with its adjusted retail spending growth stores, retail selection was still as strata reform and the Commu- management structures will be
spread of independent offerings in WA continued to slow, to be flat important. nity Titles Bill 2018 could assist simplified.”
over chain replicas. for the year to May 2018. Y Research reviewed the occu-
“It’s at least rivalling any super Spending growth was weakest pancy of the state’s 16 largest
regional shopping centre invest- in household goods (down 6.3 per shopping centres, measuring the
PEOPLE MENTIONED:
ment,” Mr Tsagalis told Business cent on May 2017), followed by diversity and frequency of their Ross Robertson, Jim Tsagalis, Damian Stone,
News. clothing, footwear and accessory tenancy mix to determine their Roy Gruenpeter, Ann Manifis, Allison Hailes
“The CBD is still a work in pro- retailing (down 1 per cent). similarity.
gress in terms of construction, Meanwhile, cafes, restaurants The report, conducted in 2017, SEARCH Scentre Group
with Raine Square, Forrest Chase, and takeaway food recorded the found that about 45 per cent of There are 62 results from our index of 95,609 articles,
(WA’s first) UNIQLO, the new strongest growth (up 4.6 per cent). retailers in each of the centres 9,440 companies and 33,391 people
FEATURE RETAIL
WA major retail de
1. Karrinyup Shopping Centre
200 Karrinyup Rd
UniSuper (managed by AMP Capital)
$800m
GLA: 59,715sqm
New total GLA: 109,000sqm
290 retailers, including a new Hoyts
Multiplex
ESTIMATED START DATE: TBC
2. Garden City Booragoon
125 Riseley St, Booragoon
AMP Capital
$750m
GLA: 72,000sqm
New total GLA: 120,000sqm
370 retailers
Scentre Group Design & Construction
ESTIMATED START DATE: TBC
5. Westfield Whitford
3. Westfield Stirling (formerly Innaloo) City Shopping Centre
Ellen Stirling Blvd, Innaloo
Scentre Group
$600m
GLA: 47,757sqm Sorrento
New total GLA: 109,000sqm
350 retailers; David Jones, renewed Event Cinemas
complex, Aldi, Coles
Scentre Group Design & Construction
ESTIMATED START DATE: TBC
4. Galleria Shopping Centre
Collier Rd & Walter Rd W, Morley
Vicinity Centres and Perron Investments
Karrinyup
$500m
GLA: 80,757qm 1. Karrinyup Shopping Centre
New total GLA: 179,000sqm (approx)
220 retailers (currently); Kmart, Myer,
Target, Rebel Sport
TBC 3. Westfield Stirling (formerly Innaloo)
ESTIMATED START DATE: TBC
5. Westfield Whitford City Shopping Centre 13. Yagan Square
Marmion Ave & Whitfords Avenue, Hillarys
Scentre Group and GIC Real Estate
$450m (Stage 1 $75m) Welli
GLA: 97,791sqm ng
New total GLA: TBC
ton S
treet Perth
314 retailers (currently); Whitfords Brewing Co., 10. Raine Square
Hunter & Barrel, Bombay Talkies
Scentre Group Design & Construction 11. Forrest Chase
STAGE 1 COMPLETED 2017, FURTHER DEVELOPMENT
t
Stree
TBC
treet
6. Westfield Carousel Perth
am
ack S
1382 Albany Hwy, Cannington WA 6107
Willi
Barr
Scentre Group
$350m
GLA: 82,500 16. Plaza Arcade
New total GLA: 110,000sqm
More than 330 retailers; David Jones, JD Sports,
St Ge
Vans, TGI Friday’s, Mecca, Wheel&Barrow orge
Scentre Group Design & Construction s Terr
ace 2. Garden City Booragoon
ESTIMATED COMPLETION: AUGUST 30 2018
7. Mandurah Forum Booragoon
330 Pinjarra Rd, Mandurah WA 6210
ISPT Core Fund and Vicinity Centres 8. FOMO, Kings Square Fremantle
$350m Fremantle
GLA: 38,300sqm
New total GLA: 64,000sqm
202 retailers; David Jones, H&M, Mecca Maxima
Multiplex
OPENED MARCH 2018
8. FOMO, Kings Square Fremantle
2 Newman Court, Fremantle
Sirona Capital
$220m (part of the $270m Kings Square
project, including office space)
GLA: 5,500sqm
TBC
Probuild
ESTIMATED COMPLETION: LATE 2019 Source map: Google
RETAILFEATURE
velopments
9. DFO Perth Airport
Dunreath Dr, Perth Airport
Vicinity Centres and Perth Airport
Ranked by project cost* $150m
GLA: 24,000sqm
120 specialty stores; Kate Spade, Tommy Hilfiger,
LEGEND Polo Ralph Lauren, Coach.
Georgiou Group
Name ESTIMATED COMPLETION: LATE 2018
Address
Owner 10. Raine Square
Project Cost 300 Murray St, Perth WA 6000
Current Gross Lettable Area Charter Hall
Total GLA post development $150m
No. of tenants/key tenants GLA: 9,000sqm
(post development) New total GLA: 18,000sqm
Builder Key tenants: 30 in total; Rebel Sports, Coles, Palace
ESTIMATED START DATE/ Cinemas, Hunter & Barrel
COMPLETION Built
ESTIMATED COMPLETION: (STAGE 1) SEPTEMBER
2018, (STAGE 3) 2020
11. Forrest Chase
200 Murray St, Perth WA 6000
ISPT Core Fund
15. Whiteman Edge Town Centre $100m
GLA: 41,300sqm
New total GLA: 50,000sqm
25 retailers; Myer, Woolworths, Goodlife Health
Lendlease Building Contractors
ESTIMATED COMPLETION: MID-2019
12. Midland Gate
274 Great Eastern Hwy, Midland
Vicinity Centres
Midland $100m
12. Midland Gate GLA: 56,373sqm
New total GLA: 70,000sqm
4. Galleria Shopping Centre More than 220 retailers; Harris Scarfe, Coles
Doric
ESTIMATED COMPLETION: NOVEMBER 2018
13. Yagan Square
Corner Wellington St and
William St, Perth WA 6000
9. DFO Perth Airport $73.5m
GLA: 1,726sqm
22 retailers; The Honeycake, Sue Lewis Chocolatier,
Fish Boss, Maalinup Aboriginal arts
Doric
OPENED MARCH 2018
14. Belmont Forum 14. Belmont Forum
227 Belmont Ave, Cloverdale
Perron Group
$65m
GLA: 42,945sqm
New total GLA: 46,709sqm
More than 120 stores; Coles, Woolworths, ALDI,
Kmart, Five Seasons Fresh
6. Westfield Carousel Perkins
ESTIMATED COMPLETION: OCTOBER 2018
15. Whiteman Edge Town Centre
Mayfield Drive, Brabham
Stockland
Approx. $40m (Stage 1)
GLA: TBC
15 retailers
TBC
7. Mandurah Forum ESTIMATED COMPLETION: TBC
Mandurah
16. Plaza Arcade
650 Hay St, Perth
Starhill Global REIT
$6.5m
GLA: 2,598sqm
New total GLA: 4,500sqm
Anchored by UNIQLO
Broad Construction
ESTIMATED COMPLETION: 2018
*Source: Company announcements
and other published reports
FEATURE RETAIL
EXPERIENTIAL: Chicho Gelato in Northbridge.
Photo: Kristoffer Paulsen
STRATEGIST: Kristi Dempster has worked with a number of clients on retail strategies, INTERACTIVE: Westfield Whitford City’s Bombay Talkies.
current projects including FOMO Fremantle and DFO Perth Airport. Photo: Gabriel Oliveira Photo: Patrick Shuttler
Experiential retail connections
The reinvention of retail assets has taken centre stage when it comes to online competition,
with centre owners, developers and tenants seeking to create experience-driven destinations.
5,500sqm
Katie McDonald of a typical shopping mall. FOMO will sit beneath the three
katie.mcdonald@businessnews.com.au Anticipated for completion levels of office space with several
in 2020, construction work on zones – the Daily, Street Alley,
CHEESE wheels and smallgoods FOMO is under way on the site Tidal Lane, Newman Court and
produce hang from the ceiling, previously home to the Myer and The Emporium – spread across
art and apparel adorn the walls, Queensgate buildings. more than 5,500 square metres, FOMO FREMANTLE PRECINCT
and a busker entertains pas- FOMO forms part of the town’s providing a marketplace-type
sers-by as they wander through $270 million Kings Square revital- mix of food and dining, arts, Founded in 2016, Assembly + Co were engaged by Sirona Capi-
a retail space that has done away isation project, a joint venture apparel and homewares. has worked on a range of retail tal two years ago to develop a
with the traditional shopping between local developer Sirona From the precinct’s name (Freo and destination marketing cam- market strategy for the mixed-
centre format. Capital and the City of Fremantle On My Own) to its design, FOMO paigns, including with Mirvac use project, as well as to curate
Such a scene of open and that also involves a commercial was developed with strong and Investa Property Group in and commission research, brand-
borderless tenancies will greet office component and the crea- input from the local community, revamping their retail offerings ing and architecture to inform
visitors to Fremantle’s new tion of a new civic centre. according to Kristi Dempster, at CBD office towers, Allendale design and product.
FOMO precinct, which is set to Designed by HASSELL and founder of marketing consul- Square and QV1. “What I’ve seen, particularly
deliver an experience unlike that international consultants HDR, tancy Assembly + Co. Ms Dempster and her team in the last two years, is this
RETAILFEATURE
“And so it’s really important immersive, emotional or commu-
to consider consumers and crea- nal experiences; places for people
tives being part of the narrative to see, feel and touch their way to
rather than being talked at. discovering a brand or a product.
“It’s refreshing to have cli- “The design of all our projects
ents that have that appetite to aims to enhance the experience
push the boundaries, completely of the end user.
change a retail paradigm and “Experiential shopping is
appreciate that’s what has to developed by considering brand
happen for retail to work.” values in every decision. If suc-
cessful, it can really add to your
Experiential appeal.”
Further north, retailer Beyond Ms Lowe’s work with Bombay
Skate is shaking up the status Talkies, one of the hospitality
quo, opening a new store in West- operators at Westfield Whitfords’
field Whitford City late last year. new dining precinct, is one exam-
Besides the usual skateboard ple of this.
products and apparel, the shop Inspired by the street side
features its own mini-skate park, stalls of old Bombay and early
visible from the front of the store Indian cinematic history, Bombay
and designed to catch the eye of Talkies’ canteen-style layout
shoppers passing by. allows the charcoal burner to
The store opened around the be at the front of the venue so
same time Westfield Whitford cooking smells can permeate the
City completed the $75 million space and create street-food the-
redevelopment of its dining and atre to attract custom.
entertainment hub, featuring Ohlo Studio has also worked
microbrewery Whitfords Brew- with Northbridge-based Chicho
ing Co as well as iPlay, an arcade Gelato, which Ms Lowe said had
games area complete with bowl- a strong, playful and inventive
ing alley. brand she sought to reflect in its
Owner Scentre Group has store design.
adopted a similar strategy at its Ms Lowe designed the bench-
$350 million Westfield Carou- top to sit lower than the standard
sel development, comprising a ice cream counter, with gelato
new dining and entertainment concealed within Pozetti (stor-
precinct as well as an extended age containers in the counter) to
fashion mall anchored by David allow for more interaction with
Jones. staff, and to make customers
Set to open August 30, David read through the flavours rather
Jones will roll out a range of than choosing instinctively by
DIFFERENT: Work on FOMO Fremantle is anticipated for completion in 2020. experiential offerings, including sight.
Impressions: Hassell, HDR. a concierge service, beauty suites, “Designed stores and restau-
and complementary personal rants are now the norm, not the
emerging understanding that styling services. exception, and throwing some
retail property must embrace It’s become more about finding Interior design firm Ohlo money at a fitout is not neces-
the surrounding community,” Studio founder Jen Lowe, who sarily enough. People want more
Ms Dempster told Business News. the connection and interaction has worked on a range of retail originality or authenticity from
“It’s become more about design projects, said experiential shopping,” Ms Lowe said.
finding the connection and inter- with the community and how that retail was the latest trend. “Physical retail will remain but
action with the community and
translates to attracting customers “As customers can pick any what will change is the relation-
how that translates to attracting products they like from around ship between online and bricks
customers through an experi- - Kristi Dempster the world online, retail spaces and mortar.
ence relative to them and their have had to become much more “I think they will become far
value set. launched later this year. While she was unable to dis- than presentation of products,” more linked than at present and
“For FOMO, it was really impor- Local artists David Spen- close details ahead of launch, Ms Lowe told Business News. managing the two well together
tant to unearth the value set of cer and Anya Brock have been Ms Dempster said inventive “They provide an opportu- will be where retailers can get an
the community and what makes commissioned to produce Fre- experiential campaigns and nity for people to engage in edge.”
Freo Freo. mantle-inspired artworks, which brand experiences would come
“I think this will put Freman- will be used across all promo- to market.
tle back on the map as a day-trip tional material, and will also “We’re seeing people shy away
destination.” work on a series of live public from being bombarded with mar- COMPANIES MENTIONED:
Ms Dempster said beyond paintings once the project is keting messaging,” she said. Assembly + Co Westfield Whitford City
market research and workshop closer to completion. “Now it’s about authenticity
Sirona Capital Westfield Carousel
sessions, the community would Assembly + Co is also currently and engagement, which extends
continue to be engaged through- working with the Perth Airport to experiential campaigns;
Scentre Group HASSELL
out the development and would and Vicinity Centre’s new Direct whether a brand or dining
be invited to contribute to the Factory Outlet, with opening experience, the narrative (of SEARCH Sirona Capital
project in different ways, with anticipated in the coming retail) needs to be original and There are 100 results from our index of 95,609 articles,
an activation campaign to be months. authentic. 9,440 companies and 33,391 people
FEATURE RETAIL
If they’re investing
in Asia or the east coast,
the returns they’re getting
aren’t as high as they’d be
getting in Perth
- Anthony Del Borrello
ACTIVE: Anthony Del Borrello says active asset management is becoming more important in increasing retail property value.
Retail assets prove value
Investors are eyeing opportunities in the state’s retail property market.
Katie McDonald investment team about 18 months from a subsidiary of Wesfarmers received by a buyer pool that Besides neighbourhood cen-
katie.mcdonald@businessnews.com.au ago. on a long lease,” he said. has previously been starved for tres, Mr Del Borrello said demand
“Interest rates are low and “If they were to buy that same high-quality offerings,” Mr Ire- for large-format retail was also
THE opportunities available in there’s a relative difference in property in Melbourne or Sydney, land told Business News. growing.
Western Australia’s retail market the yield investors are getting on instead of something like a 5 per “Over the last quarter, more Recent deals in this space
have attracted heightened inter- the east coast and in Asia,” Mr Del cent return it would be closer to stock has come to market than include the $39.9 million sale of
est from investors from the east Borrello told Business News. 4 per cent. where we were this time last the Malaga Homemaker centre,
coast and offshore for the past “Melbourne and Sydney have “So the bigger buyer pool has year.” brokered by Colliers Interna-
eight months. been extremely hot markets. definitely increased the focus Mr Ireland said demand across tional, to WA-based investor
Since the start of 2018, the Some east coast investors, and on these types of assets and is WA’s retail market was coming Quadrant Investments, and east-
majority of transactions for we’ve been seeing a lot more Sin- driving prices upwards to record from both foreign and local inves- coast GDI Property Group’s $143
neighbourhood shopping centres gaporean investors, don’t want yields.” tors, largely driven by price point. million bid for Ikea Innaloo in
have been made by out-of-state to pay 3 to 4 per cent more for The Coles Riverton sale was 2017, the sale of which was settled
investors (see table), with some assets, so they’re likely to come brokered by national sales agency Major sell-off this year.
of the latest deals including the and compete with the local pri- Savills, with Coles holding a Mr Del Borrello said another “It’s a growth sector at the
$26.9 million sale of Woolworths vate investors. 15-year lease and four 10-year driver was Coles’ and Woolworths’ moment,” Mr Del Borrello said.
Aveley to a private east coast “If they’re investing in Asia or renewal options. decision to sell-off some assets. “Most of these assets are 3ha to
investor, and a $19 million play the east coast, the returns they’re Savills director of retail ser- “There’s more interest for that 4ha on main roads with national
for Kelmscott Plaza by a private getting aren’t as high as they’d be vices, Chris Ireland, said the type of asset and that’s probably tenants and long-term leases.
Chinese investor. getting in Perth.” group received more than 290 led by pent-up capital, because we “And in terms of the return
Enquiries for the retail sales Mr Del Borrello pointed to the enquiries for the asset, which haven’t seen those assets come to you’re getting, it’s dispro-
market were currently “firing”, recent Coles Riverton sale as one had a 5,759 square metre retail market for a while,” he said. portionate to some of the
according to CBRE WA retail example. component located on a 1.98-hec- “There’s an understanding that neighbourhood centres. So you
investments negotiator Anthony “That sold to an east coast pri- tare site. there’s a larger buyer pool now might get upwards of 7 per
Del Borrello, who said the recent vate investor; their rationale was “The distinct lack of stock in and sellers can recycle some of cent return for a large format,
uptick in interest prompted the that they were still investing in the premium-grade retail sector their capital into higher-yielding upwards of 6 per cent for your
firm to create a specialised retail the majority of income coming in WA ensured the asset was well assets, or into developments.” neighbourhood centres.”
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TOP 5 SHOPPING CENTRE
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OWNERS
businessnews.com.au/List/shopping_centre_owners
Size of total area No. of
Rank Company name in m2 centres Shopping centre name
Midland Gate, Galleria 50%, Ellenbrook Central, Warwick Grove, Rockingham Shopping Centre 50%, Maddington Central, Karratha City 50%, Warnbro Centre,
1 Vicinity Centres 369,333 16 Dianella Plaza, Mandurah Forum 50%, Livingston Marketplace, Currambine Central, Stirlings Central, Kalamunda Central, Victoria Park Central, Halls Head
Central 50%
Primewest Albany Central, Primewest Busselton Home Depot, Primewest Melville, Bunbury Centrepoint, Cottesloe Central, Southern River Shopping Centre &
2 Primewest 215,859 16 Showrooms, Primewest Northlands, Primewest Osborne Park, Primewest Gosnells, Primewest Gwelup, Erskine Central Shopping Centre, Primewest Cannington,
Stirling City Bunbury, Broome Boulevarde, Caversham Village, South Central
3 Scentre Group 205,908 3 Westfield Carousel, Westfield Whitford City 50%, Westfield Stirling
4 Perron 202,148 4 Cockburn Gateway Shopping City, The Square Mirrabooka, Belmont Forum, Galleria Shopping Centre 50%
5 Lendlease 189,656 5 Lakeside Joondalup Shopping City, Armadale Shopping City, Southlands Boulevard, Northgate Shopping Centre, Watertown Brand Outlet
Major WA retail asset sales 2018
Size (Gross
Sale Price Yield Sales Agency Buyer
Lettable Area)
Malaga Homemaker Centre 18,925sqm $39.9m 8.37% Colliers International Quadrant Investments (WA)
Flinders Square, Yokine 5,990sqm $39.5m 6.00% Colliers International Private Australian Property Syndicator
Coles, Riverton 5,759sqm $31.9m 5.29% Savills Private east coast investor
Woolworths Aveley 5,040sqm $26.9m 5.80% Cushman & Wakefield Private east coast investor
Kelmscott Plaza 5,077sqm $19m 6.42% CBRE & Colliers International Private Chinese investor
Shoalwater Shopping Centre, Rockigham 4,701sqm $16.5m 6.97% CBRE Mustera Property Group (WA)
Pearsall Shopping Centre, Pearsall 2,668sqm $12.5m 6.32% Ray White Commercial WA Private Singaporean investors
7-Eleven Mandurah 203sqm $5.4m 6.33% CBRE Private east coast investor
*Table of sales | Source: CBRE, Colliers International
> 220m $
He said finding contin- comprised 2.7ha of undeveloped centres on the BNiQ Search
ual income growth across all retail-zoned land. Engine (see table).
retail assets was an emerging “Significant traction has Primewest could soon jump to
challenge. already been made through our first place if Vicinity is success-
WORTH OF RETAIL
“Astute investors want growth targeted tenant negotiations. ful in its divestment strategy,
of income and the way you find Additionally, we have been able however. In June, Vicinity
that is getting more difficult
with each asset class, especially
TRANSACTIONS SO FAR IN 2018 to renew, relocate and expand a
number of the sitting tenancies
announced that it would sell
up to $1 billion of its neighbour-
with the prospect of increasing strategies at its two shopping of a food court and an increased at the centre, which are now all hood and sub-regional shopping
online sales,” Mr Del Borrello centres. fashion offer. trading well,” he said. centres across Australia, with
said. The group said both its Within 12 months, MGroup has “Understanding retail behav- plans to reinvest into develop-
“You used to be able to rely Wodonga Plaza centre in Vic- renewed or signed new leases for iours and digging deep into local ment opportunities within its
on yield compression to get toria and Chester Pass Mall more than 60 per cent (30 retail- demographics has enabled us to core assets.
increases in value of assets; now property in Albany, had esti- ers) of the tenancies, lifting the make considered judgements and Vicinity has already sold one of
the yields are at a point where mated value uplifts of between weighted average lease expiry decisions that not only protect these assets in WA.
they’re unlikely to compress 15 and 20 per cent on the acqui- (Wale) from less than four to our investor interests, but create Flinders Square sold to a
anymore. sition price. about seven years, and Mr Clark environments that will attract private Australian property
“So it’s getting more important MGroup managing director said the centre was set to be 100 regional shoppers.” syndicator for $39.5 million in
for active asset management; Lloyd Clark said when the com- per cent leased by the end of the Both Chester Pass Mall and August, brokered by JLL, which
whether that’s remixing the ten- pany contracted Wodonga Plaza year. Wodonga Plaza were previ- has listed five more Vicinity
ancies, using additional land on last year it was facing increased The group has also improved ously owned by national retail properties on the market – Halls
shopping centre sites to develop competition from two new shop- commitments at the Chester conglomerate Vicinity Centres, Head Central (50 per cent stake),
mixed-use like residential, or ping centres opening within a Pass Mall (formerly Albany which currently leads the list Currambine Central, Kalamunda
looking at anchor tenants’ turn- kilometre. Brooks Garden shopping centre), of WA shopping centre owner Central, Warnbro Centre and
over to see whether that’ll reach “Vacancies were high and cus- largely as a result of negotiating as ranked by collective size of Stirlings Central.
a threshold where you can get tomers had to cross the border to a 10-year lease extension with
some additional income.” Albury for certain retailer needs,” anchor tenant Woolworths,
he said. increasing the Wale from less PEOPLE MENTIONED:
Value “It was a problematic land- than two years to over seven
Local property development scape, but we were confident years. Anthony Del Borrello, Chris Ireland, Lloyd Clark
and investment firm MGroup in our capacity to turn things MGroup director James Collis,
has been busy in its asset man- around.” who heads the asset manage-
agement since entering the MGroup invested $2.5 million ment division, said the firm had SEARCH CBRE
retail market in 2017, undertak- in a reconfiguration of the mall, a number of plans on the table There are 222 results from our index of 95,609 articles,
ing investment and tenancy which included the introduction for the Albany asset, which 9,440 companies and 33,391 people
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SHOPPING CENTRES
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EXPANSION: Westfield Carousel has invested $350 million into a new fashion mall, as well as a rooftop dining and entertainment precinct, set to
open from August 30.
Change
from Year Gross No. of
previous est. in Lettable Area Year Centre Speciality
Rank year Company name Senior executive and title WA (GLA) in m2 Owner/Manager Extended Shops Notable clients
1981, 1989, Myer, Target, Kmart, Woolworths, Coles,
Ms Kate Holsgrove Scentre Group. Owner and operator of Westfield
1 Westfield Carousel Regional Manager
1972 110,000 in Australia & New Zealand
1992, 1999, 330 JB HiFi, Rebel, Best & Less, Hoyts, David
2018 Jones, H&M
Lakeside Joondalup Ms Gemma 1998, 1999, Myer, Target, Kmart, Woolworths, Coles,
(a) Lend Lease Funds Management Limited
2 Shopping City
Hannigan 1994 99,400 (b) Lend Lease Property Management
2007, 2008, 330 Big W, Supa IGA, Aldi, JB Hi Fi, Rebel, Best
Centre Manager 2014, 2015 & Less, H&M.
1979, 1987,
Ms Kate Holsgrove (a) Scentre Group and GIC Real Estate, (b) Target, Big W, Coles, Woolworths,
3 Westfield Whitford City Regional Manager
1978 97,791 Scentre Shopping Centre Management (WA)
1989, 1999, 314
Bunnings, JB HiFi, Rebel, Lincraft.
2017
Galleria Shopping Mr Mike Barrington (a) Vicinity Centres and Perron Investments 1984, 1994,
4 — Centre Manager
1994 80,757 (b) Vicinity Centres 2008
171 Myer, Target, Kmart, Woolworths, Coles.
Centre
Ms Karen Draper
(a) AMP Capital Investors 1983, 1994, Myer, David Jones, Coles, Woolworths,
5 — Garden City Booragoon Centre General 1972 72,000 (b) AMP Capital Shopping Centres 1997, 2000
188
Kmart, Zara, Apple, Nespresso
Manager
Ms Jacqueline
(a) ISPT Core Fund and Vicinity Centres 1986, 1989, David Jones, Kmart, Target, Big W, H&M,
6 Mandurah Forum McKenzie 1983 64,000 (b) Vicinity Centres 1995, 2018
202
Woolworths, Coles.
Centre Manager
(a) Vicinity Centres (50%) and Private Investor
Mr Scott Ferguson 1990, 1995, Target, Kmart, Coles, Woolworths, Best &
7 Rockingham Centre Centre Manager
1971 61,833 (50%)
2009
205
Less, Rebel, JB HiFi.
(b) Colonial First State Property Management
Karrinyup Shopping 1982, 1987,
Mr Tim Richards (a) UniSuper Myer, David Jones, Big W, Woolworths,
8 — Centre Manager
1973 59,715 (b) AMP Capital
1996, 1998, 180
Nespresso
Centre 2004
Midland Gate Shopping Ms Alison Broadbent (a) Vicinity Centres Target, Big W, Kmart, Woolworths, Coles.
9 Centre Centre Manager
1980 56,373 (b) WND
1994, 2006 180
Ace Cinema, Best & Less.
1985, 1990,
Mr Chris Barton (a) Scentre Group
10 Westfield Stirling Regional Manager
1967 47,780 (b) Scentre Shopping Centre Management (WA)
1993, 1996, 171 Target, Kmart, Coles, Woolworths.
2005
Cockburn Gateway Mr Shane McLean (a) Perron Investments 2006, 2007, Woolworths, Coles, Aldi, Big W, Target,
11 Shopping City Centre Manager
1999 47,535 (b) JLL 2014
156
Best & Less, JB HiFi, Dick Smith, Red Dot.RETAILFEATURE
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SHOPPING CENTRES
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RENEW: The $100 million redevelopment of Forrest Chase in the CBD is under way.
Change
from Year Gross No. of
previous est. in Lettable Area Year Centre Speciality
Rank year Company name Senior executive and title WA (GLA) in m2 Owner/Manager Extended Shops Notable clients
Belmont Forum Ms Alexandra
(a) Perron Group 1984, 1992, Big W, Kmart, Coles, Woolworths, JB HiFi
12 Shopping Centre
McAuliffe 1974 46,709 (b) JLL 2000, 2018
131
Home, Aldi, Best & Less.
Centre Manager
Ms Allana Edwards (a) Perron Investments 1990, 1999, Woolworths, Kmart, Coles, Big W, Best &
13 The Square Mirrabooka Centre Manager
1978 42,961 (b) JLL 2010, 2015
109
Less, Aldi.
(a) ISPT (Industry Superannuation Property
Mr Daniel Ramsdale
14 Forrest Chase Centre Manager
1989 41,300 Trust) Core Fund 2018/19 25 Myer, Woolworths, Goodlife Health.
(b) JLL
Ocean Keys Shopping Ms Andrea Smith 2005, 2007,
15 — Centre Centre Manager
2001 37,889 AMP Capital
2013, 2014
120 Coles, Kmart, Woolworths, Target.
Woolworths, Best & Less, Big W, Coles,
Ms Roisin McDonagh
16 — Ellenbrook Central Center Manager
2005 36,500 Vicinity Centres 2011 80 Red Dot, Reject Shop, Aldi, Petstock, First
Choice Liquor
Mr Peter Trinh 1992, 1996,
17 Warwick Grove Centre Manager
1974 31,977 Vicinity Centres
1997, 2003
69 Kmart, Coles, Woolworths.
Kmart, Coles, Aldi, Best & Less, Target,
Armadale Shopping Mr Quentin Dennis (a) Lend Lease Real Estate Investments 1988, 1999,
18 — City Centre Manager
1984 31,046 (b) Lend Lease Property Management 2007
91 JB HiFi, Priceline, Pharmacy4Less, Reject
Shop.
Ms Kathleen Brown (a) SCA Property Retail Trust Big W, Woolworths, Best & Less, Reject
19 Kwinana Marketplace Centre Manager
1972 30,794 (b) JLL
2012 67
Shop, Dan Murphys.
Coles, Woolworths, Kmart, Best & Less,
Mr Glen Harbord (a) Stockland Property Management
20 — Stockland Baldivis Leasing Executive
2007 30,272 (b) Stockland Property Management
2014 90 Red Dot, Five Seasons Fresh, Timezone,
Brotzeit, Nandos, Priceline, Friendlies.
21
RANKED BY GLA (IN M2)
172
All information compiled using surveys, publicly available data and contact with industry sources. Other companies may be eligible for inclusion. If you believe your company is eligible, please email
claire.byl@businessnews.com.au. WND: Would Not Disclose, NFP: Not For Publication, N/A: Not Applicable or Not Available.
The above list (and more than 80 other lists) inclusive of address, phone and email information are available online to all business subscribers at www.businessnews.com.au. If you are not a fully paid up
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