Alamsyah said that with Pitt Street Mall holding the title of the most expensive retail street in Australia for many years, Lego has taken a prime spot to launch the flagship store.

“King, Market and Castlereagh Streets house many luxury brands’ flagship stores and are constantly challenging Pitt Street Mall for the title but so far, those streets can only hit $8000 to $12,000 in rent per square metres, per annum, while Pitt Street Mall rent can range from $18,0000 to $24,000 per square metres per annum.”

Bill Eroglu, director of property at Alquemie Group which has the Lego licence for Australia and New Zealand, said the group is “excited to partner with the Lego Group to bring the largest Lego store in the world to Sydney CBD and bring joy and creativity of Lego Play to all the fans both young and old”.

Troy Taylor, vice president and general manager at Lego Australia and New Zealand, said the immersive new store will feature creative play experiences, with playful nods to Australian culture that are sure to create lasting memories for every Aussie or visitor from around the world.

Retail leasing specialist Zelman Ainsworth said as retailers continue to trade seamlessly online and in-store, their retail stores are finding ways to create environments and experiences that cannot be achieved online.

“Global and Australian retailers are creating incredible flagship stores that tell stories about their brands and products, with creative and localised narratives. Gone are the days of shops with endless racks and a sale sign in the window,” Ainsworth said.

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Lego’s opening comes amid another reshuffle of tenants in Pitt Street Mall. Alamsyah has recently secured a Swatch flagship store in the MidCity arcade, while another watch giant, TAG Heuer, is expanding from 100 sq m to 120 sq m for (an undisclosed) record rent.

Jeweller Swarovski is taking the former Innisfree site while Longines will take over the former Swarovski store.

In Melbourne, luxury labels and interactive sportswear groups are also taking up new digs.

Ainsworth Property has advised Loewe, part of the LVMH stable, on a 300 square metre store on the corner of Flinders Lane and Russell Street. In other deals, there is a new 500 square metre Nike Jordan store that will land at Melbourne Central and Swatch has leased a new 400 sq m store at 260 Collins Street.

“We are getting more senior executives from global retail organisations visiting Australia to see what the hype is all about,” Ainsworth said.

“When they land in Melbourne and Sydney, they see first-hand the opportunity for a retail network here.”

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