As the custodian of perhaps the most differentiated and productive retail asset portfolios in Australia, Vicinity entered 2026 with confidence that our strategy remains fit-for-purpose and is driving long-term, mutual value creation for our people, shareholders, joint-venture partners, retailers, shoppers and local communities.
Since joining Vicinity in 2019 and especially since becoming CEO in 2023, we have steadfastly focused on curating a stronger, more resilient asset portfolio while simultaneously ensuring our assets are managed by a best-in-class team of retail-property experts.
Anchoring our portfolio of 51 retail assets is Chadstone: a top-five retail asset on the global stage, with more than 21 million visitors annually. Leveraging the scale, market power and depth of retail partnerships of Chadstone, Vicinity also boasts the largest and most productive portfolio of Outlet centres, an unrivalled CBD retail portfolio, and a portfolio of strategically located regional assets that thrive in their communities.
In this context, I am confident that we can curate destinations that combine retail excellence with the very latest trends in lifestyle experiences, all powered by data, innovation, and deeply aligned partnerships. What’s more, with a disciplined approach to managing our capital allocation, Vicinity is also in a strategic and financially advantaged position to capture additional growth opportunities that align with our strategy.
In the more recent years, we have focused on selective acquisitions, value-driven developments at our flagship assets, and strategic divestments, all while investing inside the assets to elevate the quality and vibrancy of our destinations.
We are strong believers that it is inside the centre where enduring value is created, and this is where Vicinity’s expertise differentiates us. In the past five years, we have invested in 70% of our retail assets – curating stronger, more relevant retail mixes, enhancing dining and entertainment precincts, and deepening partnerships with leading global and domestic brands.
What comes next: A development pipeline for today and the future
Today, Vicinity is proud to own and manage eight of Australia’s most productive retail assets, with our portfolio premiumisation strategy reflected in high occupancy, consistently positive leasing spreads and sustained income growth.
At Chadstone, a multi-year transformation has delivered a series of landmark projects that have redefined the centre as Australia’s pre-eminent retail-led mixed-use precinct and a clear market leader recognised on the global stage.
From the opening of Hotel Chadstone in 2019 and The Social Quarter in 2023, to more than 53,000sqm of fully occupied A-grade office space across the Vicinity Centres tower, Chadstone Place and One Middle Road, every investment has strengthened the scale, significance and performance of the asset. This has been further enhanced by the recent completion of The Market Pavilion, a first-of-its-kind fresh food and dining precinct that blends design, service and discovery.
These investments have driven meaningful value creation for Vicinity, our retail partners and customers. With more than 6500 office workers now based at Chadstone, weekday visitation has increased, driving sustained demand for food, services and convenience retail. This momentum will continue with a new Mecca flagship and luxury expansion planned for the next phase, which will elevate annual sales beyond $3 billion and reinforce Chadstone’s leadership in luxury and beauty retail.
Chatswood Chase in Sydney exemplifies our investment-led approach to elevating asset quality and vibrancy and will be the only truly luxury-led retail destination of its kind on the city’s highly affluent North Shore. Stage 1 was completed in late 2025, and the centre is being rapidly transformed; Stage 2 is set to open from late April 2026, with a magnificent mall anchored by more than 20 luxury brands.
In parallel, we are also progressing plans for the development of premium residential apartments on adjacent sites (through an accelerated approval pathway led by the State Housing Development Authority), which will further reinforce Chatswood Chase as a future-focused, premium mixed-use precinct.
In Melbourne, The Emporium continues to set the standard for CBD retail, showcased by Rebel’s flagship store with a rooftop basketball court, the newly refurbished and tremendously successful flagship Uniqlo store, together with a carefully curated and evolving retail mix that is performing strongly and aligned with evolving CBD customer expectations.
In Western Australia, Galleria in Morley represents one of the most significant retail redevelopments in the state and completion is targeted for late 2026. This project will reposition Galleria as a region-leading destination by introducing an enhanced convenience and lifestyle mix and improved amenities, directly responding to the needs of the local community and reflecting our confidence in the long-term growth of the Morley region.
In Brisbane, our redevelopment of Uptown (now wholly owned by Vicinity), will deliver a revitalised retail, dining and entertainment destination that complements the luxury positioning of QueensPlaza, and strengthens our presence in Brisbane’s thriving CBD ecosystem. Furthermore, Uptown is set to benefit from major state-led infrastructure investment of circa $9.7 billion, intended to enhance CBD connectivity ahead of the 2032 Olympic Games.
The magnitude, complexity and success of these projects highlight the strength of our organisational capability, where development, leasing and property management integrate to deliver compelling and coherent customer experiences.
Responding to customer needs and external factors
Safety and security remain a core priority for Vicinity. Over the past year, serious incidents across the shopping-centre sector have increased, particularly in Victoria. While these reflect broader societal challenges, in the absence of a consistent national approach, we continue to focus on the areas within our control.
We maintain long-standing relationships with police across every jurisdiction and work closely with local community partners. Initiatives such as Operation Pulse, delivered with Victoria Police, have increased the visibility of Protective Service Officers at key centres including Northland and Bayside, helping deter antisocial behaviour and strengthen community confidence. These efforts are supported by advanced CCTV, analytics and emergency response systems, alongside our dedicated network of more than 20 security risk managers providing on-the-ground specialist leadership at key centres.
As the retail experience becomes increasingly multidimensional, customer expectations continue to evolve beyond convenience toward interaction, discovery, entertainment and hospitality. We are responding by integrating these elements across our portfolio and tailoring each centre to reflect the needs of its local community.
Digital integration and data continue to play a critical role in meeting these expectations. Through investments in AI-enabled analytics, personalised engagement and predictive modelling, we are making smarter decisions, optimising tenancy mixes, improving operational efficiency and enhancing the customer journey, including through tools such as occupancy forecasting and time-to-park estimates.
The outlook for 2026
As we enter 2026, we maintain our strong conviction that strategically located, high-quality retail malls that are managed by retail property experts deliver superior returns for all our stakeholders, spanning customers, local communities, retailers, joint-venture partners and securityholders.
Australia’s population is growing at one of the fastest rates among Organisation for Economic Co-operation and Development (OECD) countries, while the supply of high-quality retail space remains constrained and will remain so for the foreseeable future. This is driving intensified competition among sophisticated retailers for fewer, larger, experience-led stores in the most productive centres. For owners of Australia’s best retail assets, this backdrop supports rent and income growth and reinforces the value of our disciplined strategy.
Naturally, Vicinity is not immune to potential exogenous shocks arising from geopolitical uncertainty, heightened market volatility and, more domestically, shifts in fiscal and monetary policy settings. More recently, increasing government taxes and levies have constrained the industry’s ability to maximise growth. That said, our focus remains on what we can control – disciplined execution, judicious capital deployment and consistent delivery.
In 2026, Vicinity is building on its foundations: a premium and differentiated portfolio of assets, strategic partnerships, and a relentless commitment to safety and innovation. We are creating retail-led destinations that inspire, connect and endure.
A closing message
I’m incredibly proud of our teams across the country. Their capability, resilience and customer focus underpin everything we deliver. We remain optimistic about the future of Australian retail and Australian retail property, and we are confident in Vicinity’s ability to play a role in driving the sector forward. We are committed to our communities, partners and securityholders, and excited for what lies ahead.
- This article by Peter Huddle, CEO, Vicinity Centres was first published in SCN magazine – Big Guns 2026 edition
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