Woolworths leases what will be the largest supermarket in Melbourne’s uber-dense Southbank

Woolworths will lease what will be the largest supermarket in  Melbourne’s Southbank precinct – within the $2.8 billion Melbourne Square project.

The configuration of the store – across two levels – is a “first” for a major supermarket chain, according to the agent behind the deal, CRS Commercial principal of major projects, Myles Snow.

The proposed store will comprise 1325 square metres on the ground floor and 2610 sqm on level one – a total of 3935 sqm.

Whilst the commercial terms of the lease agreement are confidential, CRS Commercial said the “two level inner-city superstore” has been approved by Woolworths’ Board.

The negotiations and plans have taken several months, according to the agency, which was engaged as advisor to the development in 2016.

“This was an outstanding opportunity to introduce a unique retail vision with innovative design to this area of Melbourne” Mr Snow said.

“It will provide a compelling story for launching both stages one and two as the project evolves over the next 12 months. The stage two development date is yet to be announced.”

Elsewhere in Melbourne, smaller supermarkets occupy double storey premises, including boutique chain Piedimonte’s in Fitzroy North (this site is currently the subject of a seven level redevelopment application which may see apartments fill upper levels, over a new supermarket).

The Woolworths lease comes two months after Coles committed to rent the ground floor of an apartment building under construction at the corner of Glen Eira Road and Hotham Street, in the St Kilda East pocket known as Ripponlea.

The agents for that deal, Gross Waddell, negotiated with numerous retail landlords to amalgamate the space which will soon be a small-format supermarket.

Melbourne Square is earmarked for 93-119 Kavanagh Street: a former open-air cark which Malaysian developers acquired for $145 million in 2014 from local builder, Mario LoGuidice’s Banco Group. The site spreads across two hectares.

The first of Melbourne Square’s five development stages commenced construction nearly a year ago.

Upon completion in about 2020, Melbourne Square will comprise six towers – four of which will be residential buildings containing a total of more than 2600 flats. These will join a 54-level hotel with nearly 700 suites and a 37-storey office.

Marc Pallisco

A freelance property writer and experienced analyst, Marc is the co-founder of realestatesource.com.au

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