Luxury jeweller Cartier will upgrade its Collins Street store after striking a deal to move into a Mirvac-owned tower on the opposite side of the street from its current location in the prestigious 101 Collins building.
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The deluxe retailer is reportedly in final negotiations to establish the new store as it nears the expiry of its four-year lease with 101, industry sources suggest.
The move heralds a significant shift in Collins Street, where high-end brands have traditionally placed a premium on establishing themselves on the southern side of the strip.
Cartier will join French women's footwear company Christian Louboutin, which this week had its official opening next door at 88 Collins, and several other big-name tenants who have been mooted for the new 39-storey tower that Queensland Investment Corporation - owner of Nauru House - is building for $550 million at 80 Collins Street.
QIC's glamorous new retail precinct has reportedly attracted interest from desirable tenants like Apple and American fashion designer Tom Ford.
Retail consultant Martin Ginnane said the industry had watched the success of clothing retailer Paul Smith's store at 120 Collins, which was trading well.
"The days of having luxury on one side of Collins Street can't satisfy people any more. There's not enough space," Mr Ginnane said.
Neither CBRE, who handled the deal, Mirvac or Cartier responded to requests for comment.
Mirvac purchased 90 Collins (it had an estimated value of $170 million) in 2013, as part of a seven-property portfolio from GE Real Estate Investments Australia.
Cartier currently trades opposite gentlemen's outfitter Harrolds, behind the famed freestanding Parthenon-sized Doric columns on 101 Collins' plush ground floor.
Earlier this year Harrolds expanded into womenswear, opening a store in Westfield Sydney. It intends to open a similar shop in Melbourne, prompting speculation it was eying Cartier's space.
Marketing manager of the family-owned company Mary Poulakis said the firm's expansion plans wouldn't come to fruition until 2016.
"We are definitely expanding but we haven't been negotiating on the 101 site [opposite]. We need a little more space than what is available," Ms Poulakis said.
Other luxury retailers and landlords have also been active, particularly St Collins Lane, the luxury redevelopment of the Australia on Collins mall at 260 Collins Street.
It recently signed Paris fashion retailers Sandro and Maje to open their first Melbourne stores in the flagship precinct.
Fairfax Media reported the retailers signed seven-year leases for two flagship 125-square-metre stores at the Little Collins Street entrance.
They will join international brands Coach and TAG Heuer, whose sites face Collins Street.
