AMP Capital has signalled a further expansion of the $800 million Karrinyup Shopping Centre development by adding more luxury retailers, with groups including Louis Vuitton expressing interest.
AMP Capital is in talks with luxury groups including LVMH to add to its stable of high-end retailers at its Karrinyup Shopping Centre precinct.
Business News understands that Louis Vuitton and Gucci have expressed interest in the shopping district, which already hosts a range of luxury retailers including Sephora, Coach and Calvin Klein.
Speaking at an Australian Property Institute event today, AMP Capital divisional investment and development manager Scott Nugent confirmed the company was in talks with LVMH Group, or Moët Hennessy Louis Vuitton.
“The next iteration of Karrinyup is going to be high end,” he said.
“We now have LVMH Group ringing us and we have plans.”
He said the group was in discussions with host of high-end retailers to expand on the existing upper- level tenants.
“[On] the upper level [we’ve got] our high-end fashion Sephora, Scanlan Theodore, Camilla, Sass and Bide, Saba, Billini, Calvin Klein, Tommy Hilfiger.
“We've got them all up there, and we've now got a few more that want to come in, we've actually got a list.”
Mr Nugent cited LVMH and Gucci as potential retailers to occupy space at the centre.
“We're starting to think about how we expand the centre again," he said.
The addition of more luxury retailers to the shopping precinct, which is owned by UniSuper and managed by AMP Capital, would align with AMP’s initial strategy for the area.
“No-one wants to buy $4,000 handbag and have it delivered to someone banging on the door, they actually like the experience so for us it is [about] that experience,” Mr Nugent said.
Two residential apartment developments underpin the Karrinyup Shopping Centre, with Blackburne Group recently submitting a development application for a residential development at the western end of the site.
Mr Nugent said the area had a strong future, with the potential for more multi-residential developments.
“We could put more resi(dential); I would eventually see around Karrinyup will get rezoned," he said.
“I think Karrinyup has got a great future over the next 20 years [and] UniSuper have said it's been a great development for them.”
In terms of luxury retail, Mr Nugent said he did not intend to compete with the CBD for space in this retail class.
“I think they did the high end goes okay [in] Perth in the city goes okay, it's very destinational, people go to that," he said.
“I think those brands would most definitely do two sites - we want that to be Karrinyup.”
He acknowledged the challenges CBD retailers faced, echoing the sentiments of many in the property industry by saying there needed to be more people living in the city.
“What I think the city has got to do and I think Subiaco is … they've got to start doing what happened in Melbourne, in the 90s, where they did Project 3003 postcode, they just gave land away gave incentives to the developers to do residential," Mr Nugent said.
“That's what the city needs.”
AMP Capital agreed to sell assets from its Collimate Capital real estate and infrastructure equity business to Dexus in a deal valued at least $250 million, Business News reported in April.
Today was Mr Nugent’s last day at AMP Capital after close to 12 years in the job, as he prepares to take up a role at Sydney-based property company GPT Group.
Head of Fiveight John Meredith spoke about the Tattarang property arm’s plans for the CBD, including to revive the Carillon City site.
He said the company genuinely believed Carillon would have a positive impact on the vibrancy of the CBD, which it needed.
The Andrew and Nicola Forrest-led company is rolling out new slogan "we are property revitalists" to emphasise the diversity of its approach.
