Days later, Uptown’s majority owner – superannuation property group ISPT, which recently merged with IFM Investors – formally announced it was selling its 75 per cent stake in the maligned retail centre, following rumours it had been quietly shopping around its share for a year.
ISPT bought a 50 per cent stake in the Myer Centre from CFS Retail Property Trust for $366 million in 2012. It purchased another 25 per cent from Vicinity four years later.
Boarded up shopfronts in the Uptown centre.Credit: Courtney Kruk
While Uptown is filled with boarded-up storefronts, short-term pop-up stores and an unusual collection of places hosting art workshops, both its current owners have key interests at the opposite end of the Queen Street Mall.
ISPT is heavily focused on a two-year redevelopment of the Wintergarden and the neighbouring Harry Seidler-designed Elizabeth Street tower long occupied by the Hilton Hotel, now branded as Intercontinental Brisbane.
Vicinity also owns Queens Plaza, the home of David Jones’ flagship Brisbane store and luxury brands including Dior and Chanel.
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The meeting between Schrinner and Vicinity went ahead, although neither party would reveal what was discussed.
Vicinity has maintained it remains committed to a $400 redevelopment of Uptown. At one point, it was suggested this would include an aquarium, escape rooms, arcade, laser tag arena and even an indoor ski-field.
The company would not comment on the Lord Mayor’s letter when approached by this masthead, pointing to a potential $200 million offer from HMC Capital to buy ISPT’s share in Uptown.
ISPT also declined to comment.
Listed funds manager HMC has entered into due diligence to acquire the 75 per cent stake, but an industry source, who requested not to be named, expected Vicinity would exercise its pre-emptive right to acquire the interest.
Once a bustling retail hub in the heart of the city, Uptown now features multiple levels of boarded up shopfronts. Credit: Courtney Kruk
In its latest financial report, Vicinity listed a planned $100 million “Myer replacement” at Uptown in its development pipeline, although it was not scheduled until the latter part of 2027.
It values Queens Plaza at $735 million, while Uptown is valued at $68.8 million, despite being the largest complex on the mall with 63,025 square metres of retail floor space.
With the future of its old home under a cloud, Myer is still shopping for a new place to land in the CBD.
The department store giant vacated Queen Street in July 2023 after 35 years in its eponymous retail centre, following a falling out with ISPT and Vicinity.
The Myer Centre was once the cornerstone of Brisbane’s CBD shopping precinct. Credit: Felicity Caldwell
The landlords wanted to increase the rent, while Myer wanted to economise its footprint. When a compromise could not be reached, Myer walked away.
Speculation that Myer would take over prime space on Queen Street Mall vacated by Swedish retailer H&M in September this year was just that.
According to industry sources, who spoke on the condition of anonymity, Myer briefly assessed the option, but found it was inadequate as it lacked enough floor space for a ground-floor beauty hall and Myer’s numerous departments.
A Myer spokesman said the retailer was “regularly assessing potential sites” in Brisbane’s CBD and any future store would need to consider location, size, and its wider capital expenditure program.
“Queensland and particularly the south-east region of the state are a key market for our business given its strong population growth,” the spokesman said.
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