Perron Group – delivering the future vision for Cockburn

ping City in a singular manner, detail its statistics, explore its trade area and then discuss its planned redevelopment and expansion; but such observation would lack any real or meaningful perspective. Describing the shopping centre in isolation would render an incomplete picture, because Cockburn Gateway is just a part, albeit a significant part, of the evolution of its ownership entity, the Perron Group, and the vision of its founder, Stan Perron. It’s also a part of the establishment of a city, part of the growth of that city and, more importantly, the community cohesion of the city. Stan Perron, in anyone’s book, was a truly remarkable man. Born in Perth in 1922, during the Great Depression his family lived in a hessian-walled house with no water, power or even a proper floor. After World War II, he bought a taxi, leased milk bars and then purchased a second-hand bulldozer, later turning the machinery investment into WA’s premier earthmoving company. Yet Perron’s commercial savvy, his entrepreneurial skills, perhaps came second place to his uncanny vision. In return for 15% of the royalties, he invested £500 in Lang Hancock’s struggling beginning, to allow the latter to stake out mining leases in the iron ore rich plains of WA; an investment that poured literally hundreds of millions of dollars into his growing empire over the coming years. In the early 1960s, Stan Perron, against the advice of many business colleagues, did a ‘handshake deal’ with Toyota, then an almost unknown Japanese car maker, gaining sole rights to distribute the brand in WA. Today, an estimated 500,000 Toyota vehicles, old and new, drive on Western Australian roads! Building on this relationship even further, a new Toyota Parts and Accessories Distribution Centre (DC) will open in the next 12 months. The Perron Group founder, Stan Perron AC It was inevitable the Perron Group would become investors in property, and it was an early investor in shopping centres. Today, the group has either total ownership or a 50% equity in 10 shopping centres across Australia. The portfolio is impressive – a 50% ownership in four Westfield centres and a 50% ownership of the top performing Broadway Sydney (see box opposite). But just as impressive, is the Stan Perron Charitable Foundation – more on that later. So, to Cockburn Gateway. And it’s here that the link between the Perron Group’s values, vision and sense of community, all come into view. Since opening, Cockburn Gateway has presented itself as somewhat of a sub-regional. The Main Trade Area, in terms of geographical spread, is larger than normal. The centre lies some 24km south of the Perth CBD and 14km south-east of Fremantle. This ‘southern spread’ of Perth – to as far south as Rockingham, has been continuous for decades, but no real ‘centre’ was established until 1979, when the town of Cockburn attained its ‘City’ status. From then on, the region had a centre, a heart. Perron Group acquired a massive 22-hectare site and developed Cockburn Gateway Shopping City, which opened in 1999. But a site that size, in the heart of the new city, adjacent to the railway station, bounded by the Kwinana Freeway to Perth running north-south and Beeliar Drive, the major east-west arterial road was, of course, destined for far greater things than being known as just a ‘sub-regional’ shopping centre. The Perron vision proved itself yet again. As it stands, Cockburn Gateway has a GLA of some 76,000m2 comprising a Big W, Kmart, Woolworths, Coles and ALDI; as well as a tavern and bulky goods precinct. The specialties cater to a lower socio-economic demographic; it’s expert, authoritative leasing as that demographic spends on retail consistently, even in downturns. Most of the big name national chains are represented, including Sportsgirl, JD Sports, Rockmans, Best & Less, Lorna Jane, Strandbags, Prouds and Angus and Coote, to mention a few standouts. The McDonald’s outlet trades above the average as do its colleagues in the food business such as Subway, iconic Perth-based pastry house Miss Maud, Guzman y Gomez and a host of others. Of course, all the banks are there, as well as Flight Centre and other major service providers. One could go on infinitum but there’s one statistic that says it all: And that is how a centre trades, how powerful it is in terms of retail sales, and how is it measured by its turnover per square metre – MAT/m2. Cockburn Gateway sits in the Top 10 Big Gun centres in Australia in terms of MAT/m2. The recently acquired DA goes far beyond the shopping centre, so again, to look at the centre in isolation renders an incomplete picture; the centre is part of the whole and the whole is far greater than the sum of its individual parts! What the Perron Group is doing here is quite simply creating a city centre over a period of years. It’s a DA for a staggering $1 billion investment, which will begin with the expansion of the present centre due to commence later this year. It’s a massive development that will continue over the next decade-and-a-half, estimated to create some 8,300 jobs during the period, and the generation of close to $3 billion in economic activity. The development is called ‘Cockburn Quarter’ and its anchor is Cockburn Gateway Shopping City. On completion, Cockburn Quarter will comprise residential towers, commercial offices, an entertainment and leisure precinct, restaurants, bars and public spaces. The ongoing development will provide direct pedestrian links to the railway station, bus interchange, the aquatic and recreation centre and the health precinct, to create an accessible and well-connected community. It’s estimated that Cockburn Quarter will provide some 2,250 full-time jobs – more than 1,300 in the retail and leisure sector, the rest in commercial. A new pedestrian bridge funded by the Perron Group will be built over the eight-lane highway, Beeliar Drive, connecting Cockburn Quarter and the centre with the Cockburn Central Town Centre. The entertainment, leisure and public spaces of Cockburn Quarter with a seamless link to the shopping centre But it’s what drives this development that gives it its uniqueness. Look, for example, at a statement made by the Perron Group describing what it plans to achieve: “Cockburn is ready for a new type of precinct, one that brings the whole community together to live, work and play in a connected, positive and community-led heartland. A modern and engaging precinct for Cockburn, we will deliver a day to night urban vibrancy and activated spaces within a safe, welcoming and easily accessible environment that enhances the wellness and lifestyle of all Cockburnians. At the centre of what we hope to deliver for Cockburn Quarter, is connection – both physical and social – and easy access to transport, housing, retail, entertainment, jobs, dining, rest, health, play etcetera means easy access to neighbours, families, friends and community. A place that supports and sustains the local economy and its people. Anchored by Cockburn Gateway, this is the heart and hub of the community, buzzing with life and pride.” Cynics might describe the statement as a bit tongue-in-cheek, a bit glib perhaps, or even a great marketing spiel. But if you talk to the people at Perron, listen to their motivation and understand their values, it becomes clear that any cynical view is far from the reality. We all want to make money; but how we do it is another matter. Short-term strategies are often very lucrative but, mostly, they are exploitative rather than contributory. Earnings from long-term contributory strategies can make short-term exploitative profits look like petty cash! At Perron Group, its earnings result from a corporate commitment to social progress. It was the basic philosophy of the group’s founder, Stan Perron, and it is exemplified nowhere more clearly, than in his establishment of the Stan Perron Charitable Foundation. Over the years, the Foundation has donated more than $100 million to various charities. Stan Perron died in 2018 and, consistent with his final wishes, the Foundation now benefits from the purpose assigned to Perron Group, as a permanent endowment responsible for providing the funds for philanthropic giving. It remains in perpetuity, guaranteeing that the Foundation will have an ongoing flow of income to distribute. In financial year 2023 alone, the Foundation distributed some $26 million to more than 220 recipients. In addition to this, the Foundation committed a further $25.5 million to be granted over the next four years. So back to Cockburn Gateway, the anchor of this massive development, Cockburn Quarter. Stage 1, due to commence later this year, will add some 20,000m2 of retail space to the centre, bringing its total GLA to more than 96,000m2. The extension of two major malls forms a ‘loop’ (see plan below), providing a continuous easy pedestrian passageway through the centre; ultimately it will connect directly and seamlessly to the new entertainment and leisure precinct, which in turn connects to the residential and commercial sections. In SCN’s view, competition for the new space will be keen. At present, the centre trades at an MAT of some $541 million. The MAT/m2 last year of $10,100 placed it in the Top 10 of the nation’s Big Gun centres; but the specialties are trading close to $13,000/m2 and could well reach the Top 10 on that ladder within a short time. Cockburn Gateway has increased its MAT by some 35% since March 2020. Cockburn City has established itself as the centre of this expanding region. Its location, in the middle of Perth’s southern suburbs, is Perth’s fastest-growing region. The city’s role at the heart of this region is well defined but it needs the retail, entertainment and leisure components to support and strengthen it. Quite frankly, as it stands, the city needs more retail and Cockburn Gateway is the only cab on the rank. The region is short of ‘middle income’ demographic retail, and Cockburn Gateway is the natural provider. Right now, escape spending from the region must be enormous! Cockburn Gateway’s Trade Area is impressive – 176,000 in the Main Trade Area and close to 400,000 in the total. The strong growth forecast over the next 15 years is supported by extensive greenfield land release in the southern and eastern areas of the Trade Area. Already, the railway station sits at the centre of the north-south line from Perth to Mandurah; the east-west line is nearing completion. And where will these lines cross and link? At Cockburn Central station – adjacent to Cockburn Gateway Shopping City! What Perron Group is striving to achieve here has precedents. Think years back to when Westfield developed Westfield Parramatta; at the time, Parramatta was an outer suburb of Sydney. Westfield Parramatta was instrumental – significantly so – in the evolution of Parramatta as a major city in its own right. What’s happening at Cockburn Quarter has many similarities. During the next few years, the city of Cockburn will grow as Perth grows. The suburban southern spread from Perth to Rockingham needs a defined hub and the city of Cockburn sits slap bang in the middle. Cockburn Gateway shopping centre sits at the centre of the city and anchors Cockburn Quarter. Quite frankly it’s the centre of everything. It’s a lay-down misère! This cover story features in SCN’s 2024 Big Guns edition. SCN premium members can view the full digital magazine here.