Prime retail arcade, 260 Collins kicks off new ownership with 5,500 sqm in leasing deals

21 May 2024

One of Collins Street’s most prominent retail sites, 260 Collins, has announced 5,500sqm in leasing deals as the UBS Asset Management Real Estate and Private Markets business (UBS AM REPM) is actively repositioning the asset together with Kaipara Property Group, unveiling plans for the site’s redevelopment.

Entertainment brand Kingpin has taken a 3,500sqm, 10-year lease for both the Lower Ground and Mezzanine, with plans to create a unique entertainment and dining offering for Melbourne’s CBD.

Kingpin is a complete entertainment experience with multiple attractions in a single large venue. Set to be the brand’s second Melbourne-based location – and 10th in Australia and New Zealand – the offering will feature attractions like darts, hyper projection bowling, karaoke, billiards, 80+ games, a new indoor lawn bowls concept, chill zones, a café and bar.

The venue will also include a mezzanine VIP room complete with a private entrance.

Australian coworking and flexible office space provider, Waterman Workspaces has taken 2,000sqm on Level 2 on a 10-year term, in what will be the first CBD location for the leading suburban workspace operator.

Waterman’s CBD centre will add immense value for Waterman’s 4,000 members active across their seven current Melbourne locations, and an opportunity for businesses to establish a Melbourne CBD presence in a Collins St address.

Known for an outstanding approach to centre design and functionality across its network, Waterman will bring its unique aesthetic to the centre with spacious private offices and coworking areas balanced with meeting rooms and a vibrant business community that will complement the overall redevelopment of 260 Collins.

Kingpin and Waterman will join the asset’s flagship tenants TAG Heuer, Swatch and Birkenstock, which occupy major street frontages on Collins Street and Little Collins Street respectively, occupying a total of 600sqm.

The internal retail arcade will soon close for 12 – 14 months for redevelopment as UBS AM REPM and Kaipara eye a more urban, vibrant and welcoming repositioning of the asset, reinvigorating this prime pocket of Collins Street to create a destination for those who live, work in or visit the CBD.

TAG Heuer, Swatch and Birkenstock will all continue to trade while the redevelopment is underway.

Global Design Practice Buchan has been appointed to redesign the centre which will focus on improving the connection between the new destination usages in the arcade as pedestrians traverse through the centre and engage with the tenants across the four levels, while also creating a new sustainability-led interior scheme.

Construction on the redevelopment is set to commence in Q3 this year, with the centre set to re-open in late 2025.

Ainsworth Property Zelman Ainsworth said:

“This is Collins Street’s largest retail centre of its kind; there is no comparable asset in terms of offering or location. We are focused on repositioning the asset through a new and vibrant mix of retailers that are more fit-for- purpose and inclusive for the diverse array of people who frequent the city each day and night.

“These two significant deals will join anchor tenants TAG Heuer, Swatch and Birkenstock to create a formidable retail offering in an A-grade location. With these now in place, we are focused on leasing the remaining tenancies with a mix that will support and diversify the offering so there is something for everyone, whether you are visiting, working or living in the CBD.

“This strong start to pre-leasing before the centre has even closed for redevelopment just underpins the opportunity afforded by the site’s address and destinational appeal. The team now is singularly focused on reinvigorating this asset and re-launching it as a centre that is worthy of its location and welcoming to everyone.”

Toby Daniel, Joint Managing Director of Kaipara said:

“We are excited about the future of this prime real estate with these two major tenant deals bringing a new sense of vibrancy in line with our leasing strategy that will help realise the potential of this asset.

“With significant revitalisation in the immediate precinct underway including the new metro station, coupled with a new energy in the Melbourne CBD currently, we see this centre reclaiming its prominence along what is arguably the city’s most well-known street.”

John Mowat, Head of Real Estate Asia Pacific, UBS AM REPM said:

“We are thrilled to achieve this important leasing milestone in the repositioning of the property.

“Kingpin and Waterman Workspaces are perfect bookends to reinvigorate the mixed-use centre already anchored by TAG Heuer, Swatch and Birkenstock. This property is uniquely positioned to meet the diverse needs of Melbourne and we are excited about the prospects for the asset and the retail market over the coming years.”

Kingpin Chief Operating Officer Belinda Falzon said:

“The quality and all-day nature of the new 260 Collins asset is a perfect match for Kingpin’s premium service and multi-attraction offering. Kingpin’s high-end entertainment, food and cocktail concept appeals to a broad demographic seeking a premium entertainment solution, for large social and corporate events as well as gatherings like morning teas, after work unwinding, date nights and nightlife activity.”

Waterman Workspaces CEO, Neville Waterman said:

“We have long planned for a CBD presence in Melbourne and are incredibly pleased to secure a site of this calibre for our members in an iconic Melbourne building to base their operations from, or to use in conjunction with one of our workspaces close to home. Our members have been asking for a convenient CBD option and we know they’re going to love 260 Collins.

“The hybrid working landscape requires a wide variety of options for businesses of all sizes and configurations to operate successfully and this flagship workspace in the heart of Melbourne will offer working solutions for the solo entrepreneur to larger corporates looking for an alternative to traditional commercial office space.

“We’re looking forward to partnering with UBS AM and Kaipara Property Group in bringing our exciting vision for this centre to life in 2025.”