Vicinity Centres and ISPT planning $500m refurbishment of former Myer Centre in Brisbane

The former Myer Centre in Queen Street Mall is set for a $500m transformation.

Just like a theme park which every few years add a new ride to attract the punters, shopping centres have to refurbish and reposition their assets to keep their shoppers and tenants happy.

Australia’s biggest shopping centre owners – Vicinity Centres, Scentre Group, QIC, ISPT, AMP Capital Investors and privates – spend hundreds of millions of dollars annually to keep consumers interested.

And it’s well worth it with the largest shopping centres ranked the most expensive real estate assets in Australia with the John Gandel and Vicinity owned Chadstone in Melbourne topping the list with a value at about $6.5bn.

Upgrades may entail a refurbishment, expansion, repositioning.

In the case of the ISPT and Vicinity co-owned The Myer Centre, now called Uptown in Brisbane’s Queen Street Mall, it is the full “rejuvenation” of a once iconic retail hub which they are rescuing from the brink.

The centre has suffered from the drift of shoppers to the mega malls in the suburbs – illustrated by a CBRE survey which found a 19.5 per cent retail vacancy rate in the CBD – and the final straw on July 31 when Myer closed its doors.

Vicinity and ISPT are in the early stages of an extensive refurbishment of the five-storey shopping centre, with a potential total spend of about $500m.

Vicinity chief executive Peter Huddle said they were aiming to start work in the 2024-25 financial year.

“We essentially have a large retail redevelopment planned for there which is retail, leisure, food and beverage plus entertainment,” he said.

“But first there will probably be about 12 months of pre-development plus working with the Brisbane City Council on planning outcomes.

“Obviously with the timing, with all the major infrastructures occurring around the Brisbane CBD at the moment, we think we’re well positioned for the rejuvenation of that asset.”

Plans are to transform what is now known as Uptown into a high-end retail precinct. Picture: Richard Walker

Since Myer announced it was leaving in March, there has been a wave of speculation, including that the five floors the department store had occupied may be turned into office.

There also has been speculation that any entertainment component could include an aquarium, escape room, arcade, laser tag arena and even an indoor ski-field.

Mr Huddle, whose company owns 25 per cent of the centre, said it will be a “whole centre refurbishment”.

“It will allow us to open up that opportunity for really significant national and domestic retailers to put their flagship stores on the ground level in the middle of the Brisbane CBD,” he said.

In the last financial year, Vicinity spent about $300m on works at a number of its shopping centres. At Bankstown Central in western Sydney, it completed a Coles supermarket, a Grand Market, and a mini major precinct, featuring international retailers including H&M and Zara. At Box Hill Central in Melbourne, it completed a Coles supermarket and services mall, and three-storey office podium.

At Chadstone, they completed The Social Quarter and the redeveloped Chadstone Place office, now fully occupied by Officeworks’ Head Office.

“I am particularly pleased with the exciting new entertainment, leisure and dining offer at Chadstone, The Social Quarter. This project has expanded the customer base of Chadstone, capturing more of the leisure market, and extended the centre’s customer visitation into the evenings,” Mr Huddle said.

With a $400m development budget in 2023-34 and started construction of the 20,000sq m One Middle Road office tower. The new tower will be integrated into two levels of retail on the eastern side of Chadstone, with the retail component comprising a new, revitalised fresh food precinct, and a new alfresco dining precinct which will be completed in stages from late 2023 until October 2024.

A major upgrade of the fresh food and dining precincts is also underway at Chatswood Chase on Sydney’s north shore, as well as the introduction of a substantial luxury retail.

With co-owner State Super, the Scentre Group which operated 42 Westfield destinations around Australia, has embarked on the next stage of its $355m Westfield Knox redevelopment in Melbourne that includes a fashion and lifestyle precinct, a full-sized FIBA grade basketball court, a nature-inspired outdoor kids play space, and a library.

Scentre and co-owner Dexus have also won approval for a $792m expansion of Westfield Booragoon Shopping Centre in Perth, which will make it WA’s largest shopping centre.

QIC has proposed a $568m revamp of Catsle Towers shopping centre in Sydney’s Hill District which will include a new hotel, commercial office tower and enlarged public spaces.

It will form part of the next development phase at Castle Towers in Sydney’s northwest, where QIC has lodged a planning application for its newest project, The Village.

The plans include a three-level three retail space that will see a mix of more than 70 new homegrown designers and international labels.

There is also a 12-storey A-grade commercial building, dubbed 2 Castle Street, which is the first of its type to be built in the area, all designed by architecture firm BVN.

“The evolution of Castle Towers into a vibrant, multifaceted urban hub is an example of how we’re bringing QIC’s town centre vision to life,” said QIC Investment general manager Matthew James.

“This is a bold new chapter for Castle Hill, which will deliver exciting new ways to live, work and play; drawing new audiences and delivering inspiration for future generations.”

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