Woolies sells Mernda site for $51.5m
Supermarket giant Woolworths has sold a large land parcel next to the newly built Mernda train station for $51.5 million to a company associated with developer Land Capital.
The 26.5 hectare site has been earmarked for a large neighbourhood shopping centre to be anchored by a full-line Woolworths supermarket, two mini major retailers and 32 speciality stores.
Land Capital director Samir Latif said a syndicate of architects, engineers and businessmen would develop the site under the company, Town Centre Development Pty Ltd. Land Capital will play a project management role.
CBRE’s Mark Wizel, Justin Dowers, Julian White and Kevin Tong brokered the transaction, which was first mooted in the media in January, for Woolies.
Mr Latif said the first stage of the project, the neighbourhood centre, had gained planning approval to proceed. Two further stages that include mixed-use bulky goods retail, commercial office and residential have not yet been approved.
"We are looking to build quality townhouses that complement the town centre," he said.
Mr Dowers said the new shopping centre was expected to open by about mid-2020.
In a strategic land play to shore up its presence in Mernda in Melbourne's north-eastern suburbs, Woolies paid just over $28 million in 2010 for the block on the corner of Plenty and Bridge Inn Roads.