Originally built in 1992 on the site of the former Hotel Australia and named Australia on Collins, the centre was reopened in 2016 as luxury retail mall St Collins Lane.
The Australia on Collins in 1992.Credit: The Age Archives
Considered a rival to the popular Emporium, it housed upmarket brands like Coach, Sandro and Maje, but struggled with occupancy. In 2020, the centre was sold for just $122 million, and later acquired by Kaipara and UBS Asset Management Real Estate.
Brian Walker, founder of retail consultancy firm Retail Doctor Group, said he was surprised to hear about the shopping centre’s pivot away from high-end retail. But he said the mixed-use space means the site could grow into a destination.
“CBD markets in these precincts are typically associated with premium and luxury retailers,” Walker said. “[But] as long as there’s an appropriate alignment of the usage to the core demographics, there’s no reason why it can’t succeed.”
Daniel from Kaipara Property is confident in the future of the arcade. He said Melbourne’s CBD was rebounding, and that there would be increased foot traffic following the opening of the Metro Tunnel in December. The new Town Hall station is nearby.
“There’s just lots happening in the precinct,” he said. “There’s been a big buzz in the retail world. It’s exciting to see that all come together.”
The entrance to the revamped Collins Arcade.Credit: Simon Schluter
The Collins Arcade redevelopment comes shortly after the high-profile August opening of Mecca’s popular flagship Bourke Street store, which is around the corner. Lord Mayor Nicholas Reece said the arcade will also serve as a link between the precincts.
“It will provide that important connection from Flinders Street Station all the way out to Bourke Street Mall. So people can walk through a continuous laneway … It activates that whole retail core,” Reece said.
Read the full article here
