Louis Vuitton: Rich Lister plans luxury retail hub in Adelaide

Mr Bonett told The Australian Financial Review he would like to secure Louis Vuitton as a permanent tenant in the future, whilst also talking to its parent company, global luxury retail giant LVMH, about opportunities to bring many other of its famous brands to Adelaide.

“It’s not quite right to say that Adelaide does not have exposure to luxury brands, but in my view it’s ready to move to the next level,” Mr Bonett told The Australian Financial Review.

He added: “Adelaide is the last developed city of the world that does not have a Louis Vuitton store, so we are delighted to be bringing this to Adelaideans.”

Demand for a luxury retail precinct and flagship outlets, Mr Bonett said, was being fuelled by workers returning to the Adelaide CBD, the resumption of international tourism and retailers looking to tap into the continued appetite for experience-based, physical stores.

In addition, significant investment in expanding the state’s line-up of major events, a $9 billion swathe of transformative major projects under way and the recent completion of new luxury hotels and office towers had all “heightened activity” in the CBD.

“With the benefit of the opportunities that this presents, and the continued strength of luxury retail across the globe, we are reimagining Adelaide Central Plaza through a major new investment, to further elevate the retail experience for customers,” he said.

Inspiration from Queens Plaza

“Along with our luxury group of retailers, we are investing $125 million dollars over the next three years to create the first dedicated luxury shopping precinct in Adelaide’s CBD.”

With Precision Group’s relationship with LVMH already established through the opening of Tiffany & Co in the Adelaide Central Plaza eight years ago and TAG Heuer in December (both brands are owned by LVMH), Mr Bonett said it made sense to “start with them”.

“We’ve also had significant amounts of other luxury brand interest, a number of which emanate from brands that already operate concessions within David Jones,” he added.

Mr Bonett said the investment in a new luxury retail precinct would take inspiration from the “amazing transformations” that have occurred at malls like Queens Plaza in Brisbane, which is owned by ASX-listed Vicinity Centres.

“The ground and first floors at Queens Plaza have been transformed into a dedicated luxury precinct, which is the appropriate environment for these stores,” he said.

“We’re focusing on achieving the same levels of amenity through upgrades to the ground and first level [of Adelaide Central Plaza] to create the first recognised and dedicated luxury retail precinct in South Australia.”