Property giant GPT Group may develop rooftop student accommodation and a hotel above the Melbourne Central shopping centre as it explores ways to enhance its property portfolio.
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The group’s chief investment officer Carmel Hourigan said adding rooftop student accommodation above the centre, which borders busy Swanston Street and RMIT University’s city campus, was an option.
GPT was "looking at some student accommodation on the roof area, and looking at a hotel opportunity as well’’, Ms Hourigan said. ‘‘What we’re doing with our portfolio is looking for untapped value.’’
GPT will look at further development of the centre after teaming up with Unilodge on a 300-bed student accommodation project in the Northern Territory suburb of Casuarina.
The much-anticipated opening of the rival Colonial First State-owned Emporium shopping centre earlier this year had not adversely impacted on sales or leases at Melbourne Central, she said.
A walkway bridge joins the two facilities across Lonsdale Street.
Speciality sales were up by 3.8 per cent post since the Emporium opened. Foot traffic through the centre had also increased significantly, up by 5 per cent weekdays and 10 per cent on the weekends, GPT said.
The centre is anchored by Melbourne Central rail station, a Safeway and Village Cinema Complex. About 40 of the centre’s 301 tenants had been duplicated with the Emporium’s opening.
‘‘There is some duplication of tenants which we will need to monitor over time and see how they’re performing,’’ Ms Hourigan said.
CBRE retail director Zelman Ainsworth said the Emporium had proven to be a drawcard for the city’s retail sector.
‘‘The Emporium has been driving more retail shoppers into the CBD. It’s had a positive effect despite speculation it wouldn’t,’’ he said.
Any development of the centre would be done in conjunction with joint venture partners, Ms Hourigan said.
GPT was on track to backfill space vacated by Myer in its Dandenong centre with tenants including Aldi and JB HiFi but there was more work to do before it would be ‘‘opportune’’ to divest the asset. ‘‘We’ve leased all the speciality tenants in that new area,’’ she said.
Melbourne Central, Highpoint and Sunshine Plaza all delivered strong contributions with lease duration on new deals averaged 4.5 years with an average of 4.8 per cent annual fixed reviews, GPT said.
