Vicinity announce plans to develop Outlet Centre at Perth Airport

Vicinity Centres (Vicinity) and Perth Airport Pty Ltd (PAPL) are to developer Western Australia's first Outlet Centre at Perth Airport in a joint venture.

The $145 million centre will be branded DFO, Vicinity's brand for its Outlet Centre portfolio, which will increase to five across the country.

The portfolio currently includes DFO Homebush in New South Wales and DFO South Wharf, DFO Essendon and DFO Moorabbin in Victoria.

The DFO's have generated an internal rate of return of 14.5 percent since acquisition in 2010.

The proposed Outlet Centre development will have over 110 stores across 24,000 sqm and provide parking for over 1,600 cars.

Construction is expected to commence in mid-2017, with completion forecast for 2018.

CEO and managing director of Vicinity Angus McNaughton said they identified Perth as a prime location due to its low representation of Outlet Centre space.

"This joint venture provides a unique and exciting opportunity for Vicinity to further solidify its market leading position in Outlet Centres," he said.