Steadfast Capital has unveiled its anchor tenant at Melbourne Walk, formerly the Walk  Arcade, as JD Sports, a leading global omnichannel retailer of Sports Lifestyle and Fashion brands.

Handled by Colliers, the deal marks the largest retail leasing transaction in Melbourne's CBD for 2024.  

With a significant portion of the Bourke Street Mall frontage, JD Sports' tenancy will span approximately 1,631 sqm of retail space across ground floor and level one of Melbourne Walk.

The location is JD Sports' second Melbourne CBD store and will  be the retailer's largest Australian flagship store. 

Hilton Seskin, Chairman of JD Sports ANZ, said the company has enjoyed rapid growth in the Australian market, selecting  strategic locations that connect it with a consumer base that shares its passion for the universal culture of sport, music and  fashion. 

"The announcement of our largest flagship store at Melbourne Walk reflects the confidence and momentum of our Australian  expansion, positioning JD Sports further as the category market leader in the region.  

"By securing a prime location in one of Melbourne's most iconic retail hubs, Bourke Street Mall, we are tapping into the city's vibrant, fashion-forward culture and growing demand for sports lifestyle product.

We view this location as a key retail hub with  strong potential for ongoing success and a prominent long-term presence," said Mr Seskin. 

Since the opening of its first UK store in 1981, JD Sports now has over 4,500 stores across 36 countries, including 65 stores in  Australia and five in New Zealand.

The Group has recently opened its latest mega store at Highpoint shopping centre, in  Melbourne's western suburbs, further expanding its footprint in Australia. 

"Building on our recent mega store opening at Highpoint, Melbourne Walk is consistent with our strategic approach,  selecting locations with high consumer relevance and traffic. We wanted the best location for our next global flagship and  Melbourne Walk presented the perfect opportunity.  

"We're excited to offer customers a tailored experience at Melbourne Walk, combining cutting-edge design with some of the  most expansive and sophisticated brand partner spaces we've ever executed," Mr Seskin added. 

JD Sports' expansion echoes the offering and trajectory of one of the site's original traders, Public Benefit Bootery, which  was established in the early 1900s. Following a significant period of commercial success, the retailer moved to the Bourke  Street Mall in the 1920s, which was emerging as the pinnacle location for merchants. 

A century later, Melbourne Walk now represents the first Bourke Street Mall redevelopment in 50 years. Teck-Lay Tay,  Executive Director of Steadfast Capital, said attracting a premium tenant to Melbourne Walk presents a strategic opportunity  for retailers to tap into the evolving landscape of Melbourne's CBD. 

"Advanced discussions are underway with complementary retailers across entertainment, fashion, and food and beverage  sectors. We envision this vibrant tenancy mix will cater to a range of CBD residents and visitorsincluding office workers, tourists  and students. 

"One of Melbourne Walk's strengths is the diversity within the single site, both in terms of flexible footprint options and frontage options.

Where the visibility of Bourke Street Mall frontage was certainly attractive to JD Sports, there has also been  significant interest in retail spaces along Little Collins Street and The Causeway.

These boutique areas are easily accessible by  pedestrians, with the internal North-South arcade set to link Bourke Street Mall to Little Collins Street and an East-West  laneway that will connect The Causeway to Union Lane," Mr Tay said. 

Melbourne Walk's total area will span over 37,000 sqm over three floors, It will include retail, two hotels, and a rooftop  restaurant.

The development will offer over 6,000 sqm of gross lettable area for retail (GLAR) and comprise approximately 35  tenancies.

The retail leasing campaign is being managed by Colliers, led by Michael Bate, Michael Tuck and Tom Larwill, who says that the record-breaking deal with JD Sports highlights a growing trend of international investment in the CBD's retail sector. 

"The deal with JD Sports is a strong indicator of growing confidence in the Melbourne CBD retail market, as it signals that global entities with successful track records are recognising the area's potential for sustained growth. 

"Furthermore, visitation in the CBD, particularly in high-traffic areas like Bourke Street Mall, is experiencing a notable uptick,  driven by the return of residents, students, office workers, tourists, and the resurgence of live events.

This recovery is helping  reinvigorate retail activity, further bolstering the appeal of Melbourne's city centre as a prime destination for local and  international retail businesses," said Mr Larwill. 

Colliers' latest research supports this optimism. It reveals that despite the broader economic pressures stemming from cost of-living challenges, retail spending across Victoria has remained resilient, increasing by 2.8 percent in June 2024 compared  to the same month in 2023. 

The City of Melbourne's Pedestrian Counting System also recorded an average monthly number of 25 million visitors to the  CBD in the year ending August 2024, reinforcing the area's position as a key retail hub. 

Once complete, Melbourne Walk will be an iconic mixed-use destination that intentionally and authentically embraces the  diversity of Melbourne and its people.

It will blend historical significance with world-class design to deliver a landmark for  Melbourne's CBD and provide a point of connection for many years to come. 

The project topped out in September 2024, which was commemorated with a ceremony attended by Lord Mayor Nicholas  Reece, along with project stakeholders Hickory Group and Buchan. Completion of Melbourne Walk is anticipated for the first  half of 2025. 

Melbourne Walk will be home to approx. 35 new tenancies once complete, and IHG’s first dual-branded hotel, which will include Holiday Inn and Hotel Indigo. (Render of Hotel Indigo foyer below)

IHG Hotels and Resorts is proud to be partnering with Steadfast Capital on the Melbourne Walk redevelopment,” said IHG Hotels and Resorts Managing Director – Australasia and Pacific, Matt Tripolone.

The mixed-use retail and hotel development, will span over 37,000 sqm, feature three retail floors, two hotels and rooftop restaurant, lounge and bar.

Buchan Project Architect is Hayden Djakic.

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