German supermarket giant Kaufland loses $8.19m on sale of Burleigh land on Gold Coast

German supermarket giant Kaufland lost millions from the sale of a Burleigh Heads site following its ill-fated foray into the Australian market.

GERMAN supermarket giant Kaufland lost a staggering $8.19 million from the sale of a Burleigh Heads site following its ill-fated foray into the Australian market.

It had spent $19.74 million buying the former Bunnings 3.28ha site at 177-207 Reedy Creek Rd in July 2018 with plans to build one of its “hypermarkets” but ran into zoning problems.

Early last year it decided to pull the pin on its expansion plan and in February listed nine sites, including the Gold Coast property, for sale through Colliers International.

Queensland Government records show Kaufland sold the property for $11.55 million, $8.19 million less than it paid.

The site Kaufland bought and later sold at 197 Reedy Creek Rd, Burleigh.

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Gold Coast developer Tim Gordon with the support of financial backers was the buyer and is planning a new homemaker centre on the site.

Mr Gordon bought two other Queensland sites from Kaufland at 177-189 Morayfield Rd, Morayfield and 159-177 Progress Rd, Richlands.

The plans for the new centre in Burleigh, located between Billabong and Stockland Shopping Centre, include a net lettable area of 11,634sq m and up to 384 car parks.

Tenancies offered range from 360sq m and 4000sq m.

Company records show a major shareholder in the new owner of the Reedy Creek Rd property is Weely’s Investment Holdings, controlled by former Supercars driver Paul Weel.

Mr Weel’s company has 10,000 shares while Mr Gordon’s company has 9153.