Fast growing grocery delivery start-up arrives in Melbourne

Milkrun has leased the ground floor of 60 Wilson Street, South Yarra.

Grocery delivery start-up Milkrun has leased its first Melbourne ‘dark store’ – at South Yarra.

Established six months ago by Koala Mattress co-founder Dany Milham, and now with 35 Sydney outlets, the retailer signed a three year agreement for 400 square metres, being the ground floor of 60 Wilson Street, off Chapel.

In 2025, the group will be presented with a three year renewal option.

Fitzroys’ Lewis Waddell brokered the deal.

Milkrun will join online magazine Foundr, which leased the upper floor of the brick building as its headquarters in 2020.

Milkrun on growth trajectory

Milkrun immediately dispatches groceries to customers within a 10 minute radius.

It negotiates directly with the suppliers of over 2000 products.

It also employs its own riders.

Following a sharp rise in demand from Sydney customers since late last year, the company recently raised $75 million to fund an international expansion, from US fund Tiger Global and local groups AirTree Ventures, Skip Capital and Grok Ventures.

Milkrun is aiming to employ 1000 people in Australia by mid-year.

Another Sydney retailer crosses the border

The Milkrun deal comes two days since we reported Sydney bottle shop and bar Odd Culture chose the ex-Fitzroy Post Office, on Brunswick St, for its maiden Melbourne store.

Late August, exclusive butcher Victor Churchill leased a historic building in ritzy Armadale – its first non-Sydney outlet (story continues below).

A little closer to town, Ultra Football also recently rented an Abbotsford warehouse for a showroom.

That retailer opened in first store in Sydney’s Alexandria, in 2018.

Mid-last year furniture retailer Krost paid $9.25m for a West Melbourne showroom, making that Mascot group’s debut in the Melbourne.

Densely populated South Yarra was ideal: agent

The Wilson St property will be used for distribution and offices.

“This densely populated inner-city catchment is the ideal place for Milkrun to make its Melbourne debut,” Mr Waddell said.

“South Yarra is undergoing a transformational period that is bringing yet more residential and commercial developments, which will further boost the catchment,” he added.

“The nearby Forrest Hill precinct is one of Melbourne’s most density populated areas and is where US company Greystar is planning Australia’s biggest Build to Rent project while Newmark Capital, Gurner and Qualitas are planning a $1.5 billion Jam Factory redevelopment that will bring 400 apartments and new office space,” according to the executive.

Goldfields recently completed a new office at 627 Chapel St, the agent said.

“Dahua, Spotlight and Simonds Group are all developing projects in the suburb too,” he added.

A large number of food and beverage operators have leased retail and inner city industrial spaces since COVID, in line with a surge in demand for essential products and delivery services, Mr Waddell said.

Subscribe to our newsletter at the bottom of this page.

Share or Recommend article

Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of