Woolies settles $11m deal in property play to open Kangaroo Point’s first supermarket

Woolworths has paid more than $1000/sq m above the last major comparable deal in one of inner-Brisbane’s most tightly-held suburbs to secure a site for the area’s first supermarket.

Artist's impression of proposed Woolworths anchored mixed-use medium-rise development at 25 Ferry St, Kangaroo Point.

WOOLWORTHS has settled a benchmark deal for a site in Brisbane’s Kangaroo Point where it plans to build the suburb’s first supermarket.

The supermarket giant’s development arm Fabcot Pty Ltd has forked out an eye-watering $11 million for the vacant 3048sq m site across multiple titles at 25 Ferry St.

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Selling agent Carl Charalambous of C Property said Woolworths had paid a “significant premium” — more than $1000/sq m above the last major comparable deal in the suburb — to secure the prime land holding.

“Vacant land in the inner city is scarce, let alone directly across the river from the CBD,” he said. “This is the last remaining vacant development site in Kangaroo Point, which is an extremely small peninsula and tightly held.”

Artist's impression of proposed Woolworths anchored mixed-use medium-rise development at 25 Ferry St, Kangaroo Point.

Mr Charalambous said the deal equated to a land rate of $3600/sq m, catapulting the area into the realm of peak prices paid for development sites in Fortitude Valley and South Brisbane.

“The most comparable sale in Kangaroo Point was a nearby site on Main St, which I sold to Aria (Property Group) last year for circa $2500/sq m,” he said.

“So that illustrates the premium price achieved for this site, which was put to a handful of qualified developers.”

Settlement of the benchmark deal occurred late last week.

Carl Charalambous from C Property.

Mr Charalambous said the former long-term owners of the Kangaroo Point site had fielded multiple offers for the parcel over the years.

“They were only ever going to sell if it was a premium offer,” he said.

“As soon as it was put to them, straight away Woolworths showed serious interest.

“They’ve been wanting a site in that precinct for many years as it is severely under-serviced by retail amenity.”

Residents currently have to drive to Woolloongabba or East Brisbane to shop at a Coles or Woolworths supermarket.

Fabcot has lodged a revised development application for a mixed-use medium-rise project for the site fronting Ferry and Deakin streets.

It comprises a residential tower with 62 apartments, a retail podium with a 1742sq m limited line supermarket on the ground floor, as well as food and drink specialty outlets. It also includes a mezzanine level, which would function either as ancillary office and storage space for the supermarket downstairs, or as a stand-alone central office which could accommodate a head office for the supermarket, or otherwise a separate business.

Communal amenities and recreation space will include an indoor gymnasium, pool, lounge deck, BBQ areas with seating pod and an open lawn.