Blackburne signs $300m AMP deal

Article by Claire Tyrrell

Source: Business News

Blackburne has entered a joint venture with AMP Capital to develop an apartment project with an end value of at least $300 million at Karrinyup Shopping Centre.

The high-end apartment developer plans to build a two-tower project of 14 and 23 storeys, comprising 253 apartments.

This marks a departure from AMP Capital’s plans to build three apartment towers nine, 15 and 24 storeys comprising 270 dwellings at the site, which received development approval in September last year.

The project is adjacent to Blackburne’s $75 million East Village 93-apartment development, which is 90 per cent sold and due to finish early next year.

Karrinyup West will be managed by AMP Capital on behalf of the precinct’s owner UniSuper.

The shopping centre underwent an $800 million redevelopment over three years, which finished late last year.

Blackburne managing director Paul Blackburne explained that the revised plans reflected current market conditions.

Blackburne’s approach with all our developments is to understand the local area and create a development which responds to what the local market wants,” he said.

“Because we sell mainly to owner occupiers, we take the approach of creating larger residences, surrounded by green open space and with great access to surrounding views.”

He said the buildings’ position to access natural light and allow for more green open space has contributed to the reduced footprint compared to the existing approval.

He added that the success of East Village indicated people were embracing residential developments alongside retail centres.

“Residences being developed in conjunction with retail offerings are more and more common internationally, and the exceptionally strong interest we’ve had in East Village demonstrates that there is demand in Australia too.”

AMP Capital WA divisional investment and development manager WA Scott Nugent said AMP wanted to create a genuine mixed-use community at Karrinyup.

“We look forward to working as a team to create a lively and vibrant, world-class residential options at Karrinyup West,” he said.

AMP Capital recently divested its real estate assets through the sale of its Collimate Capital real estate and infrastructure equity business to Dexus.

Blackburne is behind the $280m One Subiaco apartment development and $380 million Peppermint Grove multi-residential project The Grove, both under construction.