LK Group is a Melbourne-based collective of 19 private companies that dabble in several industries from property to technology to fashion. All of which operate in Australia, the US, India, the Philippines, and the Dominican Republic.
Founded by entrepreneur Larry Kestelman, LK Group's acquisition of fashion retailer Brand Collective is proof that retail is changing with more and more larger non-retail parent companies buying out fashion brands and businesses. The amount of the transaction for the acquisition was undisclosed. Brand Collective reportedly has sales of about $280 million annually and is expected to boost LK Group’s exposure to footwear products by 50 percent.
It is a good idea for a property developer to future proof their own business by filling their properties with non-core businesses that operate in other industries. A key motivator is diversifying the risk and to line up future tenants. Creating another income and capital return base that provides counter cyclical effect.
With Capitol Grand South Yarra in Melbourne already under LK Group's belt, Brand Collective was a natural addition. LK Group developed Capitol Grand South Yarra to offer luxury retail outlets and residential apartments within the same complex. Brand Collective has a portfolio of international brands and businesses from Hush Puppies footwear to Iconix. The business has 1,200 employees and operates across product design, warehousing, wholesale, retail and e-commerce in Australia.