Vicinity Takes Control of Brisbane CBD’s Uptown Centre

Left in purgatory after the departure of its anchor tenant, Myer, a new era may be dawning for the Uptown Centre in the Queen Street Mall after Vicinity Centres took full control of the landmark Brisbane retail centre. 

Shopping centre operator Vicinity spent $212 million on the controlling stake, according to an announcement to the Australian Securities Exchange (ASX). 

Contracts were expected to be exchanged with its co-owner, IFM Investors, by April and settlement was expected in June 2026 pending ministerial consent in relation to ancillary land rights, Vicinity said. 

In its statement to the ASX, Vicinity said that due to its existing and forecast trade, as well as major infrastructure investment in the run-up to the 2032 Olympic and Paralympic Games, Uptown had “inherently strong growth potential”. 

“Securing full ownership will enable Vicinity to leverage its core competencies across development execution and project leasing, and accelerate the revitalisation of Uptown and importantly, unlock the latent value of this asset,” it said. 

▲ Uptown Centre’s target demographics have an average household income of $110,188, Vicinity said.

“Our vision for Uptown is to introduce a retail, dining and entertainment offer that in many respects, mirrors that of Emporium in Melbourne’s CBD.” 

Vicinity said that the Brisbane CBD lacked a large-scale, full-price retail offer. 

“We are confident that we have the blueprint to fill that gap.” 

A planned $500-million redevelopment of the centre was touted after the departure of Myer, but the plans were sidelined when it was left in ownership limbo as ISPT shopped its stake around.

Taking over control of the asset, Vicinity has recommitted to the plans, saying it wants to expedite the redevelopment plans for Uptown. 

It said the project would cost up to $350 million. 

Uptown Centre ownership

Vicinity acquired the 75 per cent stake in Uptown from IFM Investors, whose Real Estate Core Fund owned the shopping mall after the funds manager merged with ISPT in 2024. 

ISPT had initially acquired a 50 per cent stake in the then-Myer Centre in 2012, from CFS Retail Property Trust for $366 million. 

The deal valued the centre at $732 million. 

▲ Previous plans for Uptown included an aquarium, escape room and indoor ski field.

The most recent deal, however, values the centre at $282.7 million. 

The centre has been struggling since Myer closed its flagship Queen Street Mall store in July 2023 after 35 years in the building.

Myer blamed failed lease negotiations. 

At the time, Myer chief executive John King said the Australian retailer had “been unable to negotiate a reasonable commercial outcome with the landlord”. 

Comprising 62,974 sq m of gross lettable area, the six-level CBD shopping destination was opened in 1988, just ahead of Brisbane’s World Expo ’88. 

Uptown is currently home to 125 tenants, according to Vicinity, down considerably from its peak of around 250 stores. 

Anchored by Target, Coles and Event Cinemas, and featuring an extensive food court, the centre sits above the Queen Street Mall bus station and a multilevel carpark.

According to Vicinity, 47 per cent of store leases are expected to expire in 2026, and 29 per cent are up in 2027. 

Vicinity shares results

At the same time as its Uptown Centre announcement, Vicinity Centres reported its results for the six months ending December 31, 2025 to the ASX. 

Total revenue and income increased incrementally, from $639.2 million to $642.8 million in the half year. 

However, it reported statutory net profit after tax of $805.6 million, a considerable uptick from the $492.6 million of the corresponding period the year before.

This was in large part due to foreign exchange movement on its debts, it said, a category that lost it $127.1 million in 2024 and a profit of $62.1 million in its 2025 half year.

Moody’s Ratings analyst Mariano Ferreyra said the solid results were supported by strong operating metrics from a “high-quality asset mix”. 

“Funding for the Uptown acquisition and future growth initiatives will be met through asset recycling, preserving balance sheet flexibility,” Ferreyra said.
 
“We expect Vicinity’s credit profile to remain supported by its focus on premium retail assets, strong leasing fundamentals, and conservative financial policy.”