Several new apartment buildings, a new fashion mall, new F&B precincts; a Big Gun already but now about to almost double its size; you get a lot when you spend over $800 million and AMP Capital is pulling out all the stops!
The Swan River splits Perth into north and south; the CBD is located in the north.
Since its opening in September 1973, Karrinyup Shopping Centre has been the most powerful centre on the northern side; upon opening it was the largest centre in WA, but others have since expanded and challenged its dominance. AMP Capital is currently undertaking a massive redevelopment of Karrinyup on behalf of owner UniSuper, which, in their words, “will reaffirm its dominance and position it as the leading shopping centre in the state of Western Australia”.
The scale of the redevelopment is enormous, with a total value in excess of $800 million. In addition, a partnership has been formed with Blackburne, one of Perth’s leading apartment developers, to construct the first 94 luxury apartments of some 364 on the site, all with either direct or adjacent access to the centre.
On completion, Karrinyup will almost double in size, expanding from its pre-development GLA of 59,800m2, to a whopping 110,000m2, reinstating its position as the largest in the state and one of the Top 20 largest centres in Australia.
An $800 million redevelopment is a huge call, but when you look at the statistics, its location and the surrounds, one can see why it was made. Karrinyup Shopping Centre sits some 12 kilometres north of the CBD and lies at the heart of some of Perth’s wealthiest suburbs. Just two kilometres due west is the ocean and some of Western Australia’s finest beaches, with the coastal strip suburbs running alongside. It’s expensive residential real estate and household incomes exceed both the Perth and national capital city averages by far.
As it stands, Karrinyup Shopping Centre has always been the dominant ‘fashion’ centre in Perth, north of the river. But ‘fashion’ alone is no longer an option that guarantees retail success. The game has changed and alongside fashion must come entertainment and leisure, new fresh food and dining options, new retailers and so on. To maintain dominance, Karrinyup Shopping Centre must evolve with the new age and reflect the needs, wants and aspirations of its present and future market. And it’s a changing scene.
From the time of its first real expansion, population wise, from 1957 onwards, the suburb of Karrinyup has been low-density; the shopping centre is surrounded by many parks and reserves, including private and public golf courses. However, nowadays the area is undergoing a change to low-medium density, with new multi-unit apartment developments burgeoning in the neighbouring areas. And one of Karrinyup Shopping Centre’s key significant advantages is its centrality and accessibility from a huge component of the Perth population.
The centre sits on Karrinyup Road and, less than two kilometres due east, links with the Mitchell Freeway – the major road in Perth linking the CBD with all suburbs to the north. An even shorter distance due west, Karrinyup Road links to the West Coast Highway, in turn feeding all the southern coastal and near coastal suburbs directly into the centre. At the same junction, Marmion Avenue serves a similar purpose to all suburbs located to the north (see map below).
The ease of accessibility created by this major road network provides Karrinyup with a massive Total Trade Area of more than 530,000; the validity of the statistic is easily illustrated – from the extremity of the Tertiary North Trade Area, it takes less than 17 minutes to reach the centre via the Mitchell Freeway and Karrinyup Road.
It’s a Trade Area with an average household income of $132,262, a staggering 30% higher than the Australian average which, in turn, produces a 14% higher retail spend than the Australian average.
So, the stage is set for Karrinyup’s redevelopment and, as previously stated, the sheer scale is enormous. Presently, Karrinyup has a Myer Department Store at one end, with a David Jones at the other, and a centre court with secondary malls leading to Big W and Woolworths.
The redevelopment adds a ‘Fashion Loop’, a new, two-level mall, springing off the centre court and looping its way around the northern end of the existing centre, then curving in, to the rear of David Jones, which provides a second entrance to the department store. On the ground level, this mall will highlight fashion, accessories, jewellery, shoes, handbags and the like. The first floor will showcase premium designer brands. The first section just off the centre court has already opened and boasts a two-level, 2,200m2 H&M opposite a brand new, mini-major MECCA store. This ‘Fashion Loop’ will open in its entirety later this year; leasing is well-underway and it’s obvious the usual national and international brands along with premium, loved, local brands are being targeted.
But this ‘redevelopment’ – and we choose the word with purpose, as it is a redevelopment as opposed to a major extension – is far more than the addition of shops. It’s about providing this massive and affluent trade area with a world-class centre, which we all know offers far more than traditional retail. It’s about new precincts, the creation of new places, in this case, among others, a new piazza, corso and main street. The Fashion Loop for example, on the upper level, after leading to the David Jones entrance, continues to the ‘Café Terrace’, a magnificent casual dining precinct that offers an authentic and fresh food experience.
The Café Terrace is architecturally striking – even inspired – a light filled space with an elevated alfresco deck and commanding, sweeping views of the Perth Hills and the city itself. It has direct access from an adjacent multi-deck carpark.
Move to the southern part of the centre and another new mall, East Mall, is created, linking the Fashion Loop to Big W and a Woolworths Supermarket. It’s a mall of value and service to and around the Big W entry but as it nears Woolworths it widens and another major precinct is created. This is ‘The Fresh Market’, anchored by a brand-new fitout Woolworths and two new additions, a full-line, 4,141m2 Coles and the latest ALDI.
This new precinct will open mid 2021 and will be the finest precinct of its kind in Perth. Gourmet produce and artisan food retail will be interspersed with casual dining spaces, blurring the line between fresh food retailing and casual dining.
Again, it’s an architecturally inspired space with curved feature timber ceilings, crisp fixtures and fittings, and modern floor finishes. It’s a precinct featuring some 40-odd tenancies served conveniently by a multi-deck car park.
From the ‘Fresh Market’, there’s an almost undiscernible exit point, a blurring between the inside and out, but very definitely you’re aware of a new precinct. You’ve entered the ‘West Deck’, described by AMP Capital as a precinct that captures the vibrancy of Perth’s leading local culinary talent and combining it with best-in-class national operators.
The ‘West Deck’ is a food and entertainment destination in its own right. Of course, it’s an integral part of the centre and leverages off the retail offer, but it’s an external precinct designed to stand alone; a new feature for the whole of Perth’s north coast with high exposure to, and direct access from Karrinyup Road along with on-grade parking.
Around 17 tenancies will operate in the space, varying in size from approximately 70 to 1,700m2. It’s a space designed to let the concepts be the hero, with art, lighting and landscaping as the backdrop. It’s an indoor/outdoor dining experience with an edge. And the ‘edge’ isn’t just about the offer and the setting, it’s where the enormity of this project comes to ground!
This is a truly ‘mixed use development’ and adjacent to the ‘West Deck’ are plans to construct 270 apartments where residents can enjoy an easy stroll from the lobby to the precinct. A further 94 apartments on the eastern end of Karrinyup are already under development by Blackburne, Perth’s leading luxury apartment developer. And that’s not all!
Another adjacency to this ‘West Deck’ is the entrance to the HOYTS Cinema complex due for completion in 2021. It’s the first HOYTS to be located north of the Swan River and will be the latest, state-of-the-art complex, with 10 screens and every seat in every cinema fitted out with the latest recliner seats. ‘Xtremescreens’ will also be a feature, boasting the biggest screens in the complex complete with Dolby Atmos surround sound. HOYTS LUX will provide the premium cinema experience, offering gourmet food and wine selections and an ‘in-cinema’ dining service.
The Karrinyup Shopping Centre redevelopment is a classic case of Big Gun expertise. It’s about taking the high-ground, getting rid of the blinkers and shunning the traditional approach of mere ‘extension’.
Shopping Centres have moved forward a great deal since the dawn of the new millennium, to such an extent that the term ‘shopping centre’ is no longer an adequate description. What AMP Capital has done here is to think beyond the box; the team has looked at the changing nature of the demographic and forecast the future. By the time of completion — end of 2021 — Karrinyup will be a world-class facility, not just for shopping but for entertainment, leisure, food and beverage, as well as services. We used to describe a regional shopping centre as the town centre with a roof over it; years ago, that wasn’t a bad description. Today that description still fits, but you could leave out the roof!
Town centres today are a lot different than they were in the past. AMP Capital has recognised this and, in the case of Karrinyup, is providing the region with a town or city centre. It’s a worthy centre and it’s a quality centre; it doesn’t hold back, nor does it scrimp or cut corners.
When Karrinyup is complete, it will provide its trade area residents with a community facility, a retail, entertainment, leisure, food and beverage and service centre that could take its place anywhere in the world and be recognised as a quality product, developed by a leading-edge team. For retailers, it’s a no-brainer; if you want to trade north of the Swan River, you need representation in Karrinyup.