AMP Capital has progressed the development of additional high-end residential apartments at the Karrinyup Shopping Centre in Perth as it continues to re-shape its retail and office assets into Australia’s leading mixed-use real estate portfolio.
The new luxury residential complex, to be developed by Blackburne Property Group, will add to the recent $800 million redevelopment of Karrinyup Shopping Centre, which is managed by AMP Capital on behalf of its owner, UniSuper.
Blackburne is also the development partner for the residential apartments on the east side of Karrinyup Shopping Centre. Construction is well underway on 94 high-end residential apartments comprised of 1, 2 and 3 bed apartments and penthouses. With 95 per cent already sold, the contemporary apartments, titled ‘East Village Karrinyup’ will offer incredible views over Lake Gwelup, surrounding parklands and the city skyline, matched with unbeatable convenience and connectivity not before experienced in Perth.
AMP Capital Head of Retail and Investment Marco Ettorre said the residential development was part of a broader initiative to redefine shopping centres into town centres where people can live, work, eat and play under one roof.
“We’re pleased to continue developing and delivering sustainable investment returns for our clients and thinking outside of the traditional shopping centre to maximise opportunity. We are seeing now that the best shopping centres globally are those that include something for everyone including office space, high-end, residential, education facilities, healthcare and other services within the same precinct.
“Apartments are the key component in the mix. Once you have people living on or next door to the shopping centres, it can intensify the foot traffic and extend the body clock of a centre. Residents require improved amenity with higher demand for services, like medical and health, as well as dining and health options.”
Kent Robbins, UniSuper Head of Property and Infrastructure said, “We’re delighted that together with AMP Capital we can continue to push the envelope on the assets it manages for us by quickly adapting to changing consumer needs and staying ahead of market trends, meaning we can continue to deliver returns for our members.”
The $800 million re-development of Karrinyup has seen it almost double in size, from 59,874 to 109,000sqm. It now offers 290 high-quality retail stores and an outdoor entertainment and dining precinct, including a piazza and main street.
This follows the successful completion of the $142 million Marrickville Metro development last year also for UniSuper. The sustainably designed development repurposed an underutilised industrial warehouse located across the road from the existing centre, maintaining much of the existing warehouse façade. The site now hosts more than 40 new retailers including Coles, as well as a fresh food precinct and indoor and al fresco dining options.
Mixed use is at the leading edge of real estate development as investors seek better returns from retail, office and logistics assets. Also managed by AMP Capital on behalf of its investors, is Macquarie Centre in Sydney’s northwest where there is concept approval for residential and office towers, while Quay Quarter Sydney, the company’s flagship development in Sydney’s Circular Quay, includes luxury residential, food and beverage and boutique retail set among the surrounding laneways.
“We are continuing to evolve our assets to meet the changing demands and preferences of consumers, which ultimately delivers a great return for our investors,” Mr Ettorre said. “We cannot look at shopping centres in their traditional forms. Communities want places where they can do it all in one convenient location.”
About AMP Capital Real Estate
AMP Capital is one of the largest direct real estate fund managers in the Asia-Pacific with more than $23 billion in assets under management on behalf of institutional and retail investors across the globe. We are also one of the most experienced, with our heritage in real estate investment, management and development spanning over 60 years and many investment cycles, starting with Australia’s first skyscraper which opened in 1962. AMP Capital’s extensive global network and integrated management model allows its multidisciplinary team of real estate professionals to realise true value for clients through the investment management, property management and development of a portfolio of some of the most iconic shopping centres, office buildings and industrial estates across Australia and New Zealand. AMP Capital Real Estate has recently been recognised as a leader in sustainability with a number of our real estate funds being awarded five-star ratings with global ESG benchmark for Real Assets – GRESB, which places them in the top 20% of funds globally.
In April 2022, AMP Limited announced that the AMP Capital/Collimate Capital real estate and domestic infrastructure equity business would be sold to Dexus Funds Management Ltd (Dexus), a leading Australian real estate and asset management group.
UniSuper is one of Australia’s largest superannuation funds and is run solely for the benefit of its members. For more than 35 years, UniSuper has been managing super for people employed in the higher education and research sector and is now open to all Australians. UniSuper currently invests around $100 billion on behalf of more than 450,000 members