Kaufland tipped to buy former Bunnings site

GERMAN shopping centre giant Kaufland is believed to be ready to settle on its first Queensland acquisition in preparation for the rollout of its hypermarket stores.

GERMAN supermarket giant Kaufland is believed to have taken the first step it its assault on the Queensland retail sector.

Industry sources say Kaufland has an unconditional contract to acquire a former Bunnings warehouse on a 3.28ha site at 197 Reedy Creek Rd, Burleigh Heads, on the Gold Coast.

According a Bunnings Warehouse Property Trust (BWP) announcement on the ASX yesterday contract terms were agreed to last year on the site and an option exercised by a “unrelated third party” for an unconditional contract to buy the property for $19.7 million.

Kaufland Australia has not responded to inquiries.

Kaufland is coming to Queensland.

The Bunnings site has been used for various purposes since the Wesfarmers subsidiary moved to a new warehouse a few years ago at 285 Reedy Creek Rd.

Controlled by the giant Schwarz Group, in the past year Kaufland secured sites in Adelaide and Melbourne.

It has been actively searching for properties in Sydney and Brisbane with reports Kaufland has bought vacant BWP Bunnings sites in the Melbourne suburbs of Oakleigh South and Epping.

Headquartered in Melbourne the company has also been on a recruiting drive to find staff for is Australian expansion which will shake up the Coles and Woolworths duopoly and secondary players such as Aldi and IGA.

In Germany Kaufland’s “hypermarket” model is a one-stop shop crosse between a supermarket and a Kmart.

In Australia the company has specific plot requirements between 2ha and 2.5ha and it is understood the building sizes could range from 10,000sq m to 20,000sq m.

Originally published as Kaufland tipped to buy former Bunnings site