HMC Capital poised to take control of Brisbane’s Uptown for $400m revamp
Brisbane’s Uptown, formerly the Myer Centre, is in line for a major revamp under new owners. Picture: Lyndon Mechielsen
David Di Pilla’s HMC Capital is poised to take control of Brisbane’s Uptown complex, which formerly housed department store Myer, and transform the Queen Street property into a premium retail destination.
The funds manager has entered into due diligence to acquire the 75 per cent stake being sold by property funds manager ISPT in a deal worth about $200m. Once the sale is finalised, the site is in line to be redeveloped into one of the city’s premier shopping destinations with plans afoot for a $400m revamp of the existing centre to restore it to the top echelons of city retailing.
Department store Myer exited its longstanding store in 2023 when retail landlords faced tough conditions as traditional anchor tenants were looking to rationalise their spaces. It had been in the namesake Myer Centre since 1988 – when it opened ahead of Brisbane’s World Expo – but the mall was left in limbo by its departure. But the dynamics of the market have effectively reversed with city retail coming back into favour as work-from-home fades and central business districts become more of a drawcard for retailing and entertainment.
Simon Rooney of CBRE is handling the asset sale via a confidential off-market EOI sales process. But he and the parties declined to comment.
Once HMC Capital locks down the purchase, it would work with the listed Vicinity Centres, which owns a 25 per cent stake in the Brisbane mall. This interest gives it a pre-emptive right that it could exercise but that prospect is not considered likely.
Vicinity Centres also has a focus on top retail developments and is revamping Sydney’s Chatswood Chase with a new precinct.
Together, the pair have the skills to revamp the Brisbane property and bring in top national and international brands in the lead up to the Olympics at a time when the city is under-supplied with top-level retail.
HMC Capital has expertise in retail redevelopments including in Sydney at Roselands and it is also undertaking works at Brandon Park in Melbourne.
Vicinity Centres has not commented but was keen for a partner to come into the complex by picking up ISPT’s 75 per cent interest, and helping to drive a redevelopment.
The listed group has been quietly working on plans for a proposed $400m redevelopment that would capitalise on the Uptown complex being on the largest site on Brisbane’s Queen Street Mall, spanning 13,877sq m with over 120m of prime frontage. The six-level centre is now anchored by Target, Coles and Event Cinemas, and has more than 95 specialty stores.
A purchase would likely slot into the expanding retail funds empire that HMC oversees, which includes both a listed vehicle HomeCo Daily Needs REIT, which is focused on stabilised assets, as well as two major wholesale funds, which could back a redevelopment. HMC Capital has strong origins in retail development after picking up the former Masters portfolio and transforming the sites around the country into retail hubs.
ISPT put the 75 per cent stake in the Uptown complex on the block in August. The purchaser is also moving amid a wider rise in consumer confidence that is helping to spur a renewal of city retailing nationally.
In Melbourne, fund manager IP Generation bought the flagship David Jones building in Bourke St and Newmark Capital is separately in talks to buy the Midtown building at 246 Bourke St from ISPT.
Brisbane has been quieter on the development front but conditions are lifting, with the retail vacancy rate falling to the city’s lowest level since the end of 2019. The city is seeing more projects, with ISPT also kicking off a revamp of its nearby Elizabeth St commercial and retail precinct by opening the Intercontinental Brisbane.
