Forrests buy Perth mall with redevelopment plan
Andrew and Nicola Forrest’s Fiveight – a property investment arm of the pair’s Tattarang – has picked up Perth’s Carillon City with plans for a major redevelopment.
The shopping centre and office on 5723 square metres fronting both the Hay and Murray street malls, is setting the entity back about $80 million.
The vendor, Dexus, paid Brookfield, which took over Multiplex in 2007, and Hawaiian Investments, $140m in 2016.
The year later, it won approval for a $60m upgrade.
In 2019, a proposal, for an office, education, hospitality and retail development worth $200m, with two towers, of 24 and 17 storeys, was put forward; despite failing to attract anchor occupiers, tenants in the mall were evicted late last year to begin construction.
The asset has been held by the Dexus Wholesale Property Fund.
Another Perth project for Tattarang
Fiveight acquired its first real estate asset – a Perth CBD office at 190 St Georges Terrace not far from Carillon City (which goes by the address of 207 Murray St) – from Credit Suisse for $55m in late 2020.
It since snapped up Cottesloe’s Indiana Teahouse, and won approval to redevelop it with a hotel, additional retail and an alfresco dining area.
The group has also purchased the proposed Ningaloo Lighthouse Resort, at Exmouth, Swan Brewery and Cape Lodge at Yallingup, near Margaret River.
Outside of Western Australia, late last year, we reported Fiveight was paying Hong Kong listed SEA Group $42m for Lizard Island.
The group also acquired the Gaia retreat, near Byron Bay, for c$30m from a syndicate including Olivia Newton-John.
Tattarang’s lifestyle division, Z1Z, will manage some of the hospitality assets.
The company’s Harvest Road, meanwhile, in March spent $70m on two East Kimberley cattle stations while last December paid the Benedictine Monks $40m for the New Norcia farm, 130km north of Perth (story continues below).
City changing project: Nicola Forrest
The Carillon City block is considered one of the CBD’s biggest and the only connected to the Perth train station, cultural centre and Elizabeth Quay (by pedestrian laneways, arcades and walkways).
Originally separate malls – the City Arcade, which opened in 1970, and the Carillon Arcade, which began trading 40 years ago, the assets were amalgamated in about 1988.
“While a number of redevelopment proposals for the Carillon site have been created in the past, Fiveight will begin a global search for the most innovative mixed-use design principles that maximise the true potential of its strategic location,” a Tattarang statement said. “This will include investing in new construction technologies and materials that deliver the next generation of sustainable development”.
Potential can be unlocked
Tattarang co-chair Nicola Forrest described its proposal as city changing, with the potential to re-birth Perth’s civic heart.
“For the past 50 years, the Carillon arcades and walkways have connected the commercial and retail arteries of our growing city, however we believe its true potential as a world class sustainable urban precinct can now be unlocked,” she added.
“As the new custodians of this critical component of Perth’s city core, we are committed to delivering a new future for the way we work, visit and play in the centre of a modern, sophisticated city in the 21st century,” according to the executive.
Tattarang chief investment officer John Hartman said the project will be designed to revitalise the local economy with a destination for residents, workers and visitors.
“With the site framing Forrest Place and providing critical connections to surrounding city spaces, we look forward to working with the City of Perth and state government to deliver a revitalised Carillon precinct that can create improved synergies between Perth’s landmark places,” he added.
Perth lord mayor Basil Zempilas said the development will be a “gamechanger”.
“My team’s strategic vision for the City of Perth is to build a city which is liveable, sustainable and prosperous,” according to the politician. “The Forrests’ commitment to the future of our CBD complements that vision perfectly”.
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