Kaufland to sub-let Mount Waverley HQ

The Mount Waverley office only recently underwent a refurbishment with high-end finishes. The ground floor has never been occupied.


Germany based supermarket Kaufland, which in January made the surprise decision to quit Australia three years into creating a development pipeline and never opening a store, is sub-letting its office at Melbourne’s Mount Waverley.

Kaufland moved into the Mount Waverley office from South Melbourne in late 2018. It was intended to relocate to an owner occupied Oakleigh premises before quitting Australia in January.

The company only moved into 327 Ferntree Gully Road, within Dexus’ Axxess Corporate Park, two years ago, on a temporary basis.

Its headquarters was intended to be attached to its Oakleigh store, about 15 kilometres south east of Melbourne.

When the hypermarket arrived in Australia, its established a temporary base at 100 Dorcas Street, South Melbourne.

Kaufland is owned by the Schwarz family which also holds Lidl – another supermarket chain, which five years ago announced it would come to Australia then shelved plans.

Kaufland’s short Australian history

Kaufland was intended to compete with major Australian supermarket chains Coles and Woolworths, as well as Aldi, which is also German and Costco, headquartered in the USA.

The retailer invested $25 million on its first local store, in Adelaide’s Forrestville.

The business was intending to trade from its first Australian facility last year, then some 20 soon after.

Last March Kaufland committed to what is expected to be the country’s largest distribution centre, with 115,000 sqm, at Merrifields Business Park in Melbourne’s north.

That asset forms part of a recently listed c$250m portfolio of nine properties.

Dexus’ 327 Ferntree Gully Road

JLL’s Tim Sugar and Josh Tebb are sub-letting 327 Ferntree Gully Rd.

A ground floor tenancy measuring 2099 sqm was only refurbished in January and has never been occupied.

Another 2273 sqm is on level two.

The areas are being offered with workstations able to accommodate about 400 staff.

The 327 Ferntree Gully Rd building recently underwent a refurbishment; the quality could be considered Prime (a mix between Premium, the best, and A-grade).

Kaufland’s fit out

Kaufland configured the office with a breakout area and training room off a boardroom.

It also includes an oversized kitchen, multiple smaller tea points, and casual seating areas.

The leasing agents are expecting the 327 Ferntree Gully Rd to achieve c$325 per sqm, per annum, net.

Kaufland also rented about 210 car parks.

The office is near the Blackburn Road intersection with Monash Freeway in an employment precinct popular with high-tech occupiers.

Mount Waverley properties are regularly traded, too.

In January Singapore’s listed Ocean Sky International spent $21.83m on a business park investment at 541 Blackburn Rd.

Last September the families which own Australia’s 7-Eleven and Starbucks franchises sold a formerly owner-occupied office at 357 Ferntree Gully Rd for $8.1m after relocating to rented space in inner east Cremorne.

This boardroom has bi-fold door access to a large room Kaufland used for training.
An open plan space off a large kitchen. The office is also configured with multiple tea points.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.