Perth CBD shops to sit empty over Christmas as Carillon City retailers given six weeks to get out

Perth city’s retail landscape has taken another blow with most shops in Carillon City Arcade closing by the end of October.

WAtoday understands on Friday arcade owner Dexus told all retailers not facing Hay or Murray Streets their leases would end on October 30.

Carillon City shopping centre in Perth photo.Credit:Urban Angles

Dexus bought the arcade in 2016 for $140 million and in 2019 released a $200 million plan to demolish and redevelop the space.

But a Dexus spokesperson said the current uncertainty around the economy and the pandemic had impacted the timing of the redevelopment.

City of Perth Lord Mayor Basil Zempilas said it was a blow to the city’s vibrancy.

Perth Lord Mayor Basil Zempilas said he understood Dexus had found securing an anchor tenant for the redevelopment difficult.

“But our hope always was that the Carillon would continue to operate as it is at the moment until such time as that the more expensive, and I’ve got to say, quite exciting development could take place,” Mr Zempilas told 6PR.

“These people deserve the opportunity to trade out of their leases.”

The Lord Mayor said it was a disappointing outcome for the retailers and the city.

“We need all of our shops to be full,” he said.

“This is the situation that nobody wants ... we’re trying to rebuild our city into the vibrant place we know it can be.”

The company spokesperson said Carillon City had the potential to support the revitalisation of the Perth CBD.

“We will continue to work with the WA Government and City of Perth to address the important issues that can unlock the CBD’s transformation,” they said.

“We understand there will be an impact on retailers, shoppers and the community, and we remain committed to achieving an outcome for the city that is sustainable for all of our stakeholders.”

Peter Milne covers business for WAtoday, The Age and The Sydney Morning Herald with a focus on energy, mining, construction and property.Connect via Twitter or email.

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