This article is from the Australian Property Journal archive
GERMAN hypermarket Kaufland has completed selling off nine development sites across the country it had collected for $500 million, before sensationally changing its mind and pulling the plug on its Australian operations at the start of the year.
Reports have suggested Kaufland could lose $1 billion on its rollout down under. That includes investment in a 117,000 sqm distribution facility in Melbourne’s north, worth $459 million, on which construction began last year at MAB’s Merrifield Business Park.
The facility was not part of the assets put up for sale. That portfolio comprised four sites in Melbourne, two in Brisbane, two in Adelaide and one at Burleigh Heads on the Gold Coast. Reports suggest circa $100 million was regained from their divestments, including the Queensland assets selling to developer Gordon Corp for about $30 million.
In South Australia, Renewal SA has entered into an agreement to purchase two sites at Forestville and Prospect on behalf of the state government. Current designs for the two sites propose a total of 482 dwellings, with 150 dwellings, or 30%, targeted to be affordable.
This is split between 15% affordable housing at Forestville and 60% affordable and social housing at Prospect. Renewal SA will formally seek interest from the private sector on the delivery of the projects later this year.
Formerly home to Le Cornu, the Forestville site is one of the last remaining vacant Adelaide city fringe sites. Renewal SA will deliver a masterplan for the 35,898 sqm parcel. The Prospect site is located at 250B Churchill Rd, and has a total site area of 23,610 sqm.
Also among the latest sales are a 39,146 sqm site in Chirnside Park, in Melbourne’s east, and 44,013 sqm of land in Oakleigh South, in the south eastern suburbs.
Mid-year, large format retail centre owner Aventus Group acquired a 31,470 sqm site in Melbourne’s north, adjoining its Epping Home centre, for $11.5 million. Kaufland also sold a Dandenong site to Woolworths.
