Global retail brands being lured to Adelaide

Agents say the imminent arrival of Swedish fashion giant H&M, set to anchor the $40 million Rundle Mall Plaza redevelopment, reflects growing confidence in the CBD.

The double-storey, 3000-square-metre corner site will have a dramatic impact on the Rundle Mall and Gawler Place intersection, according to CBRE retail leasing manager Julie Thomas.

“The flagship’s significant frontage to Gawler Place, together with a change in commuter patters towards to the North Terrace tram link, will be catalysts for further activation and help improve the business district with Rundle Mall and the North Terrace tourism and education precincts.”

Ms Thomas said South Australia’s retail turnover, at 3.35 per cent, was above the national average and second only to Victoria (4.34 per cent).

Chinese tourism spend was up 32 per cent and would further increase along with the expansion of the Adelaide Airport and an increase in international flights.

“South Australia is investing heavily to grow tourism with redevelopments of the Adelaide Casino, Convention Centre, Riverbank precinct and commitment from several new hotels,” she said. “We’re seeing interest in Adelaide from luxury and gateway-to-luxury tenants gaining momentum as they position themselves to secure prime sites with international tourism growth.”

JLL strategic research manager Rick Warner said Adelaide’s reputation as a ‘foodie’ destination and gateway to world-famous wine regions was driving investment in the Central Market, Chinatown and East End.

He said while vacancy rates had increased across traditional suburban high-street retail precincts, CBD vacancy fell by 1.4 per cent in the first half of 2018 to 8.3 per cent.

Retail vacancy rates in Adelaide

A slew of new luxury hotels were planned for Adelaide, including a Marriott Westin at the redeveloped Adelaide General Post Office at Victoria Square, Crowne Plaza Adelaide on Frome Street and Sofitel Hotel on Currie Street.

New inner-city residential buildings set to come online this year including the Adelaidean on Frome Street and Realm on Austin Street, Monument East on East Terrace and East End Apartments overlooking Rymill Park, would also contribute to growth.

The State Government’s Laneway Master Plan announced in 2016 to revitalise under-used side streets was also helping draw ‘foodies’ to the city.

“The multiplier effect of the (plan) is the increased vibrancy and attractiveness of the city as a place to do business, a place to study and as a place to live.”

Savills SA Asset Management national head Rino Carpinelli said Romeo Foodland was set to take advantage of growing demand for gourmet food experiences with plans for a ‘New York-style’ supermarket and food hall in the redeveloped Citi Centre on the corner of Pulteney Street and Rundle Mall.

The 1700-square-metre development would offer gourmet takeaway and eat-in options, walk-in cheese room, bakery and delicatessen.

“This is really exciting for Adelaide and will be a similar experience to Romeo’s Martin Place food hall in Sydney – a place where you can order oysters and have them shucked for you.”

The Crowne Plaza Adelaide will be part of the city’s tallest building when completed in 2020. Photo: Supplied

Mr Carpinelli said the $35 billion Future Frigate submarine project announced earlier this year had boosted consumer confidence in SA.

JLL South Australia managing director Jamie Guerra said sales and leasing activity in Rundle Mall continued to be hampered by limited supply due to the prevalence of small private ownership.

However, retail trade around the city’s west end had lured international investors including Singaporean developer Chip Eng Seng Corporation, which secured the former Mercure & Ibis Styles Grosvenor Hotel on North Terrace for $43 million in December.

The tram extension along North Terrace, the Adelaide City Council’s $30 million streetscape project and its Ten Gigabit fibre topic data network had helped lift sentiment and drive investment.

H&M to anchor new-look Plaza

Swedish fashion giant H&M will open its first South Australian outlet in the $40 million Rundle Mall Plaza redevelopment.

The development will span four levels of the nine-storey building and will include a lower ground floor ‘tech hub’ with offices and co-working spaces, a ground floor dedicated to retail, a dining space on level one and health and wellbeing precinct on level two.

Constructed in the 1960s as a standalone David Jones Department Store, the building was converted to Rundle Mall Plaza in the early 2000s by Weinert Group.

The project’s original builder Hansen Yuncken will join architects Hames Sharley on the design and build of the redevelopment, set to open this year.

Weinert Group executive director Peter Weinert said the “time (was) right” for redevelopment of the plaza.

“With the new tramline down North Terrace, the impending upgrade to Gawler Place, and numerous commercial and residential buildings under construction around Rundle Mall, it is an exciting period of transformation and growth for Adelaide,” he said.

“Weinert Group’s significant commitment shows continuing confidence in South Australia’s retail sector.”

The Plaza is seeking tenants across retail, food and beverage, health and wellbeing services such as a day spa, gym or yoga studio to join existing tenants JB Hi-Fi, OPSM, Sportsgirl and Gerard McCabe Jewellers.