Mirvac has defied the sluggish consumer sentiment and inked a deal to expand the luxury tenant offerings across the Sydney CBD in a new lease at its 55 Market Street property with the upmarket Korean-based Lotte Duty Free.
It will be the first of many new leases for a range of upmarket tenants that have earmarked the City for new flagship stores.
Most sites are still under construction so leasing agents are confident that by the time they open, from 2021, the sector will have shown improvement boosted by a renewal in international tourists.
Lotte will be on the prime corner of Market and Pitt streets in Sydney’s city and will be the retailer’s flagship store over three floors or 3000 square metres. Lotte took over JR Duty Free, and 55 Market Street will be their first ground-up build and represents their largest investment to date in Australia.
The Korean company is the world’s largest duty-free operator. The group also has a non-airport stand-alone store in Melbourne’s Swanston Street.
Flexible office operator WeWork was previously mooted to be looking at the office space above the retail podium but did not proceed with the deal.
Lotte Duty Free Oceania chief executive Stephen Timms said spanning across three levels, the store will feature top beauty and skincare brands, a prestige watches boutique, a fine and rare liquor and wine shopping experience and a number of VIP services including concierge and limousine transfers to Sydney’s top hotels and dining.
It is expected the group will look to expand its stand-alone stores when appropriate sites are available.
Non-travelling customers will be able to buy some items but will have to pay duty.
Fender Katsalidis Architects has designed the refurbished building with Built undertaking construction with TSA Project Management from October last year.
Mirvac are in charge of the building redevelopment and are working with the retail leasing agents, Knight Frank and Colliers retail leasing teams.
Mirvac fund manager David Stabback said the announcement of Lotte Duty Free was the “perfect alignment to the high-quality commercial offering that will be coming to market this year with the redevelopment well under way”.
Within the city core there is also the plans by Scentre group to redevelop, with Cbus Property, 77 Market Street, occupied by the David Jones mens wear and food court. The department store will relocate later this year to its flagship Elizabeth Street store.
Scentre and Cbus will then embark on plans to create a luxury retail format on the lower levels and a mix of office and apartments on top.
Dexus has also signed Valentino in its MLC Centre to gain traction from the revamp of King Street, starting with the revamped Louis Vuitton store on the corner of George Street. Opposite is the under construction 388 George Street site with a new retail podium also aimed at the luxe retail market.
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