GPO to get makeover amid retail competition
But owner ISPT said the GPO was "not closing" and would "definitely not" become a hotel, denying claims on social media that the retail precinct was "dead" and plans were under way to transform the heritage-listed property into boutique accommodation.
"It will continue as retail," ISPT chief executive Darryl Browning said. "We certainly are looking at remixing and redevelopment options."
The new plans come after the superannuation fund recently spent $3 million on heritage work on the landmark building's facade and roof.
The retail centre has reportedly struggled with vacancy problems since opening in 2004. Large chunks of the centre were empty when Fairfax Media visited on Thursday afternoon while some tenants were advertising steep discounts.
ISPT's website shows that the centre has nine empty shops covering 670 square metres, most on level one. Alice Giblin, manager of fashion boutique Life With Bird, said it was difficult trading on the first floor next to two large vacant shops.
"We've seen a lot of stores come and go - mostly go," she said.
Industry sources say the ground floor - home to popular fashion labels such as Ben Sherman - would be generating strong revenue for ISPT but the upper levels were struggling to attract or hold tenants.
Mr Browning said the GPO was also facing competition from the "fairly aggressive" Emporium development under construction next door. Set to open later this year, the $1.16 billion Emporium project promises 225 stores including international retailers and luxury brands.
bbutler@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
Yes. The Melbourne GPO is set to undergo another costly redevelopment as the $81 million premium retail centre seeks to respond to changing retail conditions and nearby competition.
The GPO is owned by ISPT. ISPT's chief executive Darryl Browning has said the centre is 'not closing' and 'definitely not' being turned into a hotel — it will continue as retail while the owner considers remixing and redevelopment options.
No. ISPT has denied social media claims that the heritage-listed GPO will become a hotel or boutique accommodation and has confirmed it will remain a retail precinct.
The article reports the GPO has struggled with vacancy problems since opening in 2004. ISPT's website showed nine empty shops covering about 670 square metres, with upper levels especially struggling while some ground-floor stores continue to generate strong revenue.
The GPO is facing competition from the nearby Emporium development on the old Myer site. The Emporium is a $1.16 billion project due to open later this year with about 225 stores, including international and luxury brands, and has been described as a 'fairly aggressive' competitor.
Yes. ISPT recently spent about $3 million on heritage work on the landmark building's facade and roof as part of maintenance and preservation efforts.
Some tenants report trading difficulties, especially on upper levels and the first floor where adjacent vacancies reduce foot traffic. A manager at fashion boutique Life With Bird said many stores have 'come and go — mostly go', and some tenants were advertising steep discounts.
Everyday investors should note that owner actions (redevelopment planning and heritage spending), persistent vacancy issues, and strong new competition from the Emporium could affect the GPO's retail performance and rental income. ISPT's stated intent to keep the site as retail and explore remixing options is also an important factor to watch.
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