The outlet centre will be branded DFO and funded by both Vicinity and Perth Airport Pty Ltd (PAPL) as part of a joint venture. The proposed development will include over 110 stores across 24,000sqm with 1600 parking spaces.
“Vicinity’s existing outlet centre portfolio has generated an internal rate of return of 14.5 per cent since acquisition in 2010,” said Angus McNaughton, CEO and MD, Vicinity. “We had identified Perth as a prime location for a new DFO asset with its low representation of outlet centre space.
“This joint venture provides a unique and exciting opportunity for Vicinity to further solidify its market leading position in Outlet Centres.”
Construction is expected to commence in mid-2017, subject to planning approvals with completion of the project forecast for 2018
“For our cornerstone retail development we wanted to partner with the best in the brand outlet space,” said Steve Holden, executive general manager property, PAPL. “Vicinity has a highly successful track record in operating its DFOs and was considered to be the ideal development partner.”
Vicinity will be the property and development manager for the project. Vicinity’s existing DFO portfolio comprises locations at Homebush in New South Wales, and South Wharf, Essendon and Moorabbin in Victoria.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.