IKEA is selling Campbellfield’s ex-Pipeworks Market.
The Scandinavian retailer agreed to purchase the property from Babcock & Brown 10 years ago with plans for a 41,000 square metre freestanding outlet – its biggest in the Southern Hemisphere, to open by 2012.
Despite then-planning minister Justin Madden approving the $170 million proposal, construction never started.
In 2014, IKEA again announced it would start building on the 400-430 Mahoneys Road site and be trading within 24 months – plans which also fell through.
Shortly after, branding material connecting itself to the block was removed.
The retailer has in recent years completed Australian outlets at Melbourne’s Springvale (36,000 sqm) and Sydney’s Tempe, which at 39,000 sqm, is the country’s biggest (story continues below).
The ex-Pipeworks site at Campbellfield
With the IKEA building permit lapsed, JLL’s Mario Moscan, Antony Cannizzaro and Matt Ellis are marketing the 8.5 hectare Campbellfield holding as an infill development site with nearby 464-466 Mahoneys Rd.
No price has been disclosed but industry sources suggest the offering should achieve more than $15m.
Part of the land is zoned Commercial 2 so could make way for an office or showroom; the balance is earmarked for industrial.
Until the Metropolitan Ring Road (M80) opened in 1999, Mahoneys Rd was a much busier east-west thoroughfare.
The IKEA site has significant frontage to the freeway, which in this part of town, is also the Fawkner border. It will benefit from the proposed North East Link road project, connecting Greensborough to Bulleen.