Blackburne Property Group has lodged a scaled-back development application with plans for a residential tower to add to the $800-million redevelopment of Karrinyup Shopping Centre near Perth.
AMP Capital, which manages the shopping centre on behalf of owner UniSuper, is repositioning its retail and office portfolio into mixed-use town centres where people can live, work, eat and play under one roof.
The new luxury residential complex has been scaled back from three buildings to two, with a slight reduction in height and fewer apartments in total.
Development manager Blackburne Property Group’s managing director, Paul Blackburne, said the success of their East Village development, a 94 high-end apartment development on the east side of the shopping centre, was evidence of buyer appetite for luxury living close to retail centres.
“Residences being developed in conjunction with retail offerings are more and more common internationally and the exceptionally strong interest we’ve had in East Village demonstrates that there is demand in Australia too,” Blackburne said.
“We’re proud to have been selected as the development manager to deliver an iconic development in the heart of Karrinyup.”
AMP Capital head of retail and investment Marco Ettorre said that globally successful shopping centres were incorporating a true mixed-use precinct strategy.
“We’re pleased to continue developing and delivering sustainable investment returns for our clients and thinking outside of the traditional shopping centre to maximise opportunity,” Ettorre said.
“Apartments are the key component in the mix. Once you have people living on or next door to the shopping centres, it can intensify the foot traffic and extend the body clock of a centre.
“We are continuing to evolve our assets to meet the changing demands and preferences of consumers, which ultimately delivers a great return for our investors.
“We cannot look at shopping centres in their traditional forms. Communities want places where they can do it all in one convenient location.”
Mixed use development continues to attract investors seeking better returns from retail, office and logistics assets.
UniSuper head of property and infrastructure Kent Robbins said the superannuation fund was delighted to work with AMP Capital to reposition and adapt assets to changing consumer needs and deliver returns for members.