Cotton On founder Nigel Austin and his Pakington St property play

Cotton On founder Nigel Austin has been buying up landholdings at the southern end of Pakington St, creating uncertainty among traders about what the future holds for their businesses and the strip.

Billionaire Cotton On founder Nigel Austin has been buying properties in Pakington St.

A popular Pakington St grocer is shutting up shop after its landlord – billionaire Cotton On founder Nigel Austin – slugged the business with a significant rental increase, with other nearby operators now fearing the same fate.

In recent years, Mr Austin has been buying up landholdings at the southern end of Pakington St, considerably outbidding other parties.

The Village Store, located at 324-326 Pakington St, Newtown, will close on January 25 after its owners, Daniel and Jackie Anderson, were unable to absorb what is understood to be at least a 50 per cent rent hike.

The Village Store’s Daniel Anderson. Picture: Stephen Harman.

“We would’ve liked to stay but we couldn’t afford any major increase in rent, like a lot of businesses, and they made it clear they wanted the building back, so that really finalised the process,” Mr Anderson said.

“It was a stressful time, as there is any time with change in rental situations … we’ve accepted it now, it is what it is.”

Kevin Spoors, who has operated K & M Paints from 340 Pakington St for 30 years, said when Mr Austin purchased his property about two years ago, he was told a significant rental hike would come when his current lease expired later this year.

He said an increase of up to 80 per cent was flagged.

“I can’t afford to sell paint at those prices,” Mr Spoors said.

“I know they want me out, it’s just a matter of time.”

Mr Spoors said he previously expressed interest in purchasing the property, but was told by the previous owner that he wouldn’t have got “within a bull’s roar” of Mr Austin’s offer.

“They’re paying big, big money,” he said.

A spokeswoman for Mr Austin said the existing lease for The Village Store property, which was acquired in 2022, had a five-year renewal option.

“The option for renewal was subject to an independent market review, as outlined in the lease that predated our ownership,” she said.

“The tenant chose to leave rather than exercise the option after being offered a new lease at well below market rates.”

Business owners said rumours were rife about what the future held for the strip.

A recurring theme was the ongoing introduction of high-end fashion outlets.

Mr Austin’s ex-wife, Tania Austin, last year opened an outlet for her Decjuba fashion brand at 334 Pakington St.

“Say hello to our biggest store ever,” an Instagram post at the time said.

A local resident closely connected to Pakington St traders said the loss of The Village Store was a major blow to the area.

“It’s a big blow to the soul of this community,” they said.

In 2021, Mr Austin purchased two Hyland St properties in Fyansford for $7.2m.

The sites will ultimately become the commercial hub of the fast-growing suburb and are a key element of the Gen Fyansford housing development.

Mr Austin has previously declined to disclose his plans for the properties.

As founder and one of only two directors of Cotton On parent company Cogi Pty Ltd, Mr Austin received the vast majority of $56.6m paid in dividends last financial year.

Mr Austin’s wealth was last year estimated at $2.66bn by The Australian’s rich list.

Originally published as Cotton On founder Nigel Austin and his Pakington St property play