After securing a number of high-profile retail leasing deals, CBD retail asset 260 Collins Street is now more than 75% leased, with the doors set to re-open in October this year under the new name of Collins Arcade.
The new deals, brokered since the beginning of this year, include Priceline Pharmacy, which has signed a 10-year lease for a large-format premises of over 700m2 to anchor a ‘health and wellness’ precinct Level 1.
Priceline is set to be joined by ASX-listed Healius Group, which will open a pathology clinic. Those lease commitments will further accelerate the conversion of level 1 towards a health and wellness offering with complementary hair, beauty and wellness offerings in final negotiation.
Other transactions include leading fashion retailers MJ Bale and SABA, who have taken 120m2 and 150m2 on long leases respectively. Both MJ Bale and SABA will join the existing ground-floor flagship tenants, TAG Heuer, Swatch, and Birkenstock, all of which continue to trade during the redevelopment.
Heads of Agreements have been reached with five additional food, wellness and athleisure and sport retailers, in addition to the previously announced co-working provider, Waterman Workspaces on Level 2, and Kingpin, which has leased the basement level, bringing the site to over 75% leased.
Kingpin has previously secured a 10-year lease for more than 3,500m2, while Waterman Workspaces has taken 2,000m2 within the precinct.
Toby Daniel, Joint Managing Director of Kaipara said: “Collins Arcade will reclaim this property’s prominence in Melbourne’s CBD, and we have extreme confidence in the Buildcorp team’s ability to deliver a project of this scale, complexity and importance.
“Leasing demand has continued to strengthen as tenants see the vision of Collins Arcade materialising together with the Melbourne CBD rebound to exceed pre-pandemic sales and foot traffic levels.”
These recent additions, brokered by Zelman Ainsworth of Ainsworth Property, will complete the repositioning of the asset as a dynamic retail, workplace, dining, and entertainment destination in this prime pocket of Collins Street.
The internal arcade between Collins and Little Collins Streets closed in September 2024 for the 12-month, $50 million repositioning which is being led by Buildcorp.
Collins Arcade is scheduled to reopen in Q4 2025.
This reopening will coincide with several major developments in the area, including the new Town Hall Metro station which is opening in close walking distance of the precinct, in addition to the new Holiday Inn and Indigo Hotels.
Global design practice Buchan has redesigned the precinct to enhance the customer and retailer experience, creating a more authentic ‘Melbourne feel’ while re-establishing a strong connection between Flinders St Station and Bourke Street Mall.
Melbourne’s CBD has experienced significant rebound in foot traffic in recent months with retail vacancy rates tightening by 0.85% to 6% in the second half of 2024.
Additionally, consumer spending has remained robust, with Australians spending a record $1.3 billion on Boxing Day 2024, a 1.8% increase from the previous year.
This data highlights Melbourne’s rapid recovery across retail spending, with the CBD regaining its position as a vibrant hub for retail, dining, and entertainment.
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