10/05/2016 - 15:20

Landlords pave way for global shops

10/05/2016 - 15:20

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Preparations are being made for international fashion giant H&M to open its long-anticipated second store in Perth, while the Plaza Arcade is in line for a $6 million revamp to make room for another flagship global tenant.

Landlords pave way for global shops
Starhill Global REIT plans to spend $6 million revamping the Murray Street side of the Plaza Arcade. Photo: Attila Csaszar

Preparations are being made for international fashion giant H&M to open its long-anticipated second store in Perth, while the Plaza Arcade is in line for a $6 million revamp to make room for another flagship global tenant.

H&M has been considering opening a store at the historic GPO Building at Forrest Place for nearly two years.

In September 2014, Business News broke the news that the fashion retailer was negotiating a lease for a CBD store, around the same time its international rivals, Topshop Topman and Zara, were setting up shop in the Murray Street Mall.

The retailer has since opened its first Western Australian outlet at Lakeside Joondalup Shopping City, but Business News understands it is now preparing to negotiate the final hurdles for its CBD opening.

GPO Building owner Australia Post has been going through the planning and approvals process to facilitate the opening of H&M on the ground, level one and parts of level two and the basement of the building, with a $1.2 million tenancy fit-out application lodged with the City of Perth late last month.

Australia Post also lodged a $1.5 million office fit-out application, in order to relocate the Metropolitan Redevelopment Authority to the third floor of the building to allow H&M to use the space.

Both applications will be assessed in coming weeks, while Australia Post is reportedly looking to sell the GPO Building as part of a nationwide asset sell-down.

At Plaza Arcade, Singapore-based landlord Starhill Global REIT has lodged an application for a $6 million redevelopment, transforming the Murray Street-facing portion of the mall into a single tenancy.

The redevelopment also includes an upgrade of the laneway between the arcade and the David Jones building, which Starhill Global also owns.

The laneway between the arcade and David Jones will be activated as part of the plan. Photo: Attila Csaszar.

While a Starhill Global spokesman would not reveal the identity of the tenant, Business News understands Japanese fashion retailer Uniqlo had been negotiating with agents for the space.

Uniqlo announced around a year ago that it was aiming to open 50 Australian stores in three years and recently opened its 10th Australian outlet.

Other international retailers that have been rumoured to have designs on Perth and could take up such a large tenancy include American cosmetics chain Sephora and fashion retailer GAP.

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