North Shore gets luxury makeover as Vicinity lands Louis Vuitton Moet Hennessy

Louis Vuitton is bringing its luxury offerings to Sydney’s suburbs with a new precinct to open at Chatswood Chase next year.

Shopping centre giant Vicinity Centres has put its luxury credentials on display by extending its partnership with global powerhouse Louis Vuitton Moet Hennessy Group, which will anchor a new precinct at its latest development on Sydney’s North Shore.

The listed Vicinity has landed the luxury powerhouse to anchor its redevelopment of Chatswood Chase, drawing on its already strong ties with LVMH at Melbourne’s Chadstone, which it co-owns with billionaire John Gandel, and QueensPlaza in Brisbane.

Of the dozen LVMH maisons joining Chatswood Chase, 10 will anchor a first-level luxury precinct. They are Louis Vuitton, Dior, Bvlgari, Celine and Loewe, as well as Tiffany & Co, Fred, Tag Heuer, Chaumet and Rimowa.

Although they are not considered luxury brands, Sephora and Parfums Christian Dior – also part of LVMH – will have ground-floor stores. The redeveloped Chatswood Chase is opening in two phases, with the first phase commencing from October, in time for Christmas.

The first luxury retail precinct is expected to launch from April, and will also feature some of the world’s most recognisable luxury brands alongside LVMH’s portfolio of maisons, marking a major fashion push into the wealthy area.

Artist impression of the proposed redevelopment of Sydney’s Chatswood Chase. Picture: Supplied

Vicinity is overhauling Chatswood Chase after buying out Singaporean sovereign fund GIC two years ago and also has an apartment scheme on the drawing board.

It is aiming to transform the North Shore complex into Sydney’s next fashion capital, taking on rival Scentre, which is expanding Westfield Sydney via the overhaul of the former David Jones Market St building in the CBD.

Vicinity wants to lift Chatswood Chase’s fashion status so it rivals Chadstone. The Sydney centre aims to house globally coveted luxury brands, with a mix of top local and international designers to have a presence, alongside upmarket athleisure and lifestyle brands.

Vicinity chief executive Peter Huddle is upbeat about the impact of the company bringing the flagship LVMH brands to Chatswood Chase.

“Our enduring partnership with LVMH is built on a deep understanding of luxury retail, mutual trust and a shared commitment to creating long-term value,” he said.

Louis Vuitton South Asia president Marco Comazzi said Australia remains a “strategically important” market for the chain, and the company was committed to strengthening its presence to offer more services and experiences to local customers.

Vicinity Centres CEO Peter Huddle. Picture: John Feder

Mr Huddle acknowledged that luxury shopping had undergone a pretty challenging time on a comparable sales basis during the cost-of-living squeeze. But it came back in the second half, led by jewelry and accessories.

Vicinity reported an annual profit of more than $1bn, up from $547.1m last year. Funds from operations bumped up by 1.4 per cent to $673.8m and an adjusted metric showed a 3.6 per cent rise. At 14.8c, Vicinity delivered FFO per security at the top end of its guidance range of 14.5c to 14.8c per security.

The company’s stock traded well on Wednesday and was 2.8 per cent higher at $2.61 in afternoon trade, as its guidance met market expectations.

Mr Huddle cited improving sales in the wake of rate cuts.

“We’ve seen a strong recovery of comparable sales across the portfolio,” he said. This ran from May and he expects it in July trading. “We’re seeing it both in confidence, in the consumer, and then we also had a strong finish to the fiscal year with retailer demand,” he said.