Renewal SA purchases two Kaufland sites for affordable, social housing

Kaufland sold Morayfield Village Shopping Centre to developer Gordon Corp last month.

Renewal SA has purchased two inner-Adelaide development sites from German retailer Kaufland.

In Forestville (pictured, top) and Prospect, the government arm intends to over the next five years replace them with mixed-use but predominantly residential communities.

About 482 dwellings are anticipated – some 150, or 30 per cent, allocated for affordable/social housing.

Retail and commercial product is earmarked too.

The properties were part of a portfolio of nine listed by Kaufland in February – a month after announcing it would not open in Australia after three years of planning and acquiring about 20 sites.

The 3.6 hectare Forestville property at 10 Anzac Highway – formerly the Le Cornu furniture store – was its first purchase here, costing $25 million in 2017.

Renewal SA is expecting to partner with just one builder, here.

The redevelopment will comprise about 15pc affordable housing.

The Prospect holding at 250B Churchill Road, near Islington train station, set Kaufland back $12.5m.

Here – 2.4ha – the government said it hopes to work with multiple builders to deliver a new village (story continues below).

Affordable and social housing will comprise a total of about 60pc of these new homes.

In July Renewal SA sought a partner to develop an entrepreneur and innovation centre at Lot 14 in the Adelaide CBD.

More Kaufland disposals to come

Kaufland, which is owned by the Schwarz Group, invested a reported $250m on Australian real estate – mostly with the intention to construct 5000 square metre-plus bulky goods style stores it called hypermarkets, which would compete with Coles and Woolworths.

The retailer also started building a c115,000 square metre distribution centre on a 25ha parcel in in Melbourne’s north Mickleham.

Colliers International Alysia Reilly is the lead agent now selling down the portfolio.

In June, the agency collected $11.5m from Aventus for a 3.2ha parcel at Epping, not far from that logistics complex.

Across town Kaufland offloaded a 3.1ha Dandenong store to Woolworths for $18.2m

Last month developer Gordon Corp acquired the Morayfield Shopping Centre in Brisbane’s north. The vendor paid $19.6m 14 months earlier.

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Marc Pallisco

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

Marc Pallisco