Boutique fashion hub tipped for David Jones’ Sydney store
The historic David Jones Market St store in Sydney could be transformed into a precinct for emerging designers, growing local labels and niche international brands in plans believed to be under consideration by lead bidder Scentre Group.
The shopping centre owner and operator, founded by the Lowy family, is in due diligence to buy the site at 77 Market St for about $370 million after a closely fought campaign in which it beat a joint venture between Stockland and Cbus Property.
According to retail executives, part of the Market St store, which was marketed by CBRE and Savills, could be converted into a precinct showcasing emerging designers, local designers and cult European brands that builds on the success of other niche retail enclaves including Melbourne’s St Collins Lane and Sydney’s Ivy Laneway and The Intersection in Paddington.
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Westfield Sydney already has a waiting list of more than 50 retailers seeking a foothold, and a new shopping centre at 77 Market St would cater to the overflow demand. At the same time, a swag of new, niche European brands arriving in Australia are demanding spaces that differ from the standard format, forcing landlords to respond with more adaptable spaces that feel as if they are tucked away from the high street.
One leasing executive pointed at the arrival of niche European brands including The Kooples, Zadig and Voltaire, Maje and Sandro as a particularly influential factor, noting that the brands all had a huge international following, yet could not compete with the stiff rents of about $5000-$6000 a square metre that larger groups such as Zara or The Gap can pay in Sydney.
You only need a handful of them to make the place a serious destination in its own right
In Melbourne, LaSalle won plaudits for striking a balance inside its centres to allow boutique brands to flourish, with St Collins Square now selling for a premium price of about $250 million.
Other executives say Sydney lacks a similar destination.
“Brands like that need to be in a precinct of their own … attract the same sort of demographic and you only need a handful of them to make the place a serious destination in its own right,” one Sydney-based leasing executive says.
Scentre declined to comment, but executives indicate that the group has enjoyed a high level of success with its 100 Squared fashion markets at Westfield Sydney, Miranda and Melbourne, selling apparel from emerging designers in a pop-up style space.
The reports come at a time when Sydney’s retail landscape is transforming. ISPT this week received the green light for a $75 million redevelopment across 345 and 363 George St, and 24 York St, with plans for an upmarket retail precinct with a central lobby and opening on to George St and Martin Place.
This article originally appeared on www.theaustralian.com.au/property.
