Woolworths

Fabcot, the development arm of supermarket giant Woolworths, has gone back to the drawing board to increase the size of their Kangaroo Point, Brisbane, mixed-use development.

They've had local architecture firm Cottee Parker Architects add a further seven levels to the previous development approval, taking the total levels now to 17. That will see the apartment numbers increase from 62 to 130.

The project, slated for 25 Ferry Street which will also front&nbsp;Deakin and Prospect Street's, will have a mix of just seven one-bed apartments, 75 two-bedders, 44 three-bed units and four four-bed apartments.

<img alt="Woolworths Kangaroo Point" data-entity-type="file" data-entity-uuid="5045db25-d04a-4f76-98b3-fc407f1ab58e" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screen%20Shot%202022-10-05%20at%2010.11.20%20am.png?VersionId=_jq.9.Vbgj7DTqWb.9Yq9EMrA68876BC" />

There will be a rooftop pool, gym, and outdoor barbecue space with seating.

The tower will rise above a full-line, 2,240 sqm Woolworths.

Town planner Urbis noted the change application was through further design planning, and the acquisition of another lot to make a 3,197 sqm site.

"The site is in a well-positioned location that boasts strong connections to the river, CBD, Howard Smith Wharves dining precinct, the Story Bridge and a variety of walking and cycling paths," Urbis noted in their submission to the Brisbane City Council.

<img alt="Woolwor" data-entity-type="file" data-entity-uuid="8add64c3-12ad-4794-a426-3495f3145e24" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screen%20Shot%202022-10-05%20at%2010.11.15%20am.png?VersionId=iY9o4TX0cAECzyxlEiQg2kL1msvlYJcq" />

Approval for the former 10-level, 62-apartment project had been granted in December 2021.

The Kangaroo Point project is yet another application submitted by Fabcot so far in a busy 2022. In May they submitted plans in Sydney to&nbsp;reinvigorate an existing retail space in Neutral Bay Village, activating a pedestrian laneway and plaza and building 91 apartments above a Woolworths. The proposal also includes extensive office space.

It was revealed late last year that Woolworths were venturing into the residential development space, with the first announcement a $200 million mixed-use building in Sydney's Waterloo.

The project, to be known as Bourke &amp; Young at 923-935 Bourke Street, is being drawn up by&nbsp;Sydney architects Bates Smart. It is expected to have some apartments dedicated to affordable housing for key workers.

Fabcot plans similar residential and retail projects in Elsternwick and Glen Iris in Melbourne and at Scarborough in Perth.

&nbsp;

It was revealed late last year that Woolworths were venturing into the residential development space, with the first announcement a $200 million mixed-use building in Sydney's Waterloo

Joel Robinson

First look: Woolworths plot larger Kangaroo Point mixed-use apartment and retail development

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Gone are the days of the weekly shop – now, <a href="https://www.urban.com.au/new-apartments/melbourne-square-93-119-kavanagh-street-southbank" target="_blank">Melbourne Square</a> residents don't have to go far to pick up their daily fresh fruit and vegetables, from the brand new full-line Woolworths.

The recently completed 3,800 square metre supermarket spans two levels across the podium of the building's village-style shopping precinct, alongside an espresso bar, pizzeria, fish and chip shop, as well as Vietnamese and Chinese restaurants and a BWS bottle shop.

The Woolworths supermarket also offers 120 dedicated parking spaces for community use.

<a href="https://www.urban.com.au/new-apartments/melbourne-square-93-119-kavanagh-street-southbank" target="_blank"><img alt="" height="2283" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/melbourne-square-93-119-kavanagh-street-southbank-8d107fa0c127e0b10a58e6df6b938e07.jpeg" width="3425"></a><a href="https://www.urban.com.au/new-apartments/melbourne-square-93-119-kavanagh-street-southbank" target="_blank"><img alt="" height="2283" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/melbourne-square-93-119-kavanagh-street-southbank-36af995925b09a89a044bf59a0174d21.jpeg" width="3425"></a>

<a href="https://www.urban.com.au/new-apartments/melbourne-square-93-119-kavanagh-street-southbank" target="_blank"><img alt="" height="1308" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/screen_shot_2021-03-24_at_12.07.12_pm.png" width="2084"></a>

OSK Property's Sales and Marketing Director Scott Jessop explained that the supermarket delivers required amenity to the growing Southbank population. 

<blockquote>
"Southbank's population is expected to exceed 50,000 by 2036, which is 174 per cent higher than the current population. It is essential that the community is able to access basic everyday amenity so that the area's expanding population can be adequately accommodated.

“We know Southbank residents have been waiting for a full-line supermarket in their local area and we are happy to be able to provide this much-needed amenity, along with other amenities for the community. This is in line with our vision to create an integrated mixed-use lifestyle precinct for Melbourne Square residents and the Southbank community."
</blockquote>

[smartcode_project:default project_id=2929]
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Olivia Round

Vibrant new retail precinct joins Woolworths at Melbourne Square

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Woolworths is looking at a sale of its Thomas Dux gourmet food store chain, The Australian Financial Review  reports.
The company has reportedly sought expressions of interest from trade buyers and private equity investors.
It is asking between $10 million and $20 million for the 10-store chain, according to the report which suggested potential buyers could include South African retailer Woolworths Holdings, which purchased the upmarket department store chain David Jones.
The first Thomas Dux store opened in 2008 in Sydney's lower north shore suburb of Lane Cove, with the second in Paddington.
In 2009 Dux opened is recently closed store on Crown Street, Surry Hills.
The company bought leases on eight Macro Wholefoods sites, including Crows Nest and Hornsby.
Tim Morris, from New Zealand-based Coriolis Research, advised in 2008 that no "middle market" retailer in the world had ever been able to make a success of an upmarket small-format store.
The 10-store gourmet food chain became profitable last year.
Thomas Dux was pitched as not quite as fancy as upmarket rivals Simon Johnson or Jones the Grocer, but taking on Norton St Grocer and Harris Farm Markets in the middle ground of specialty grocer-cum-deli with an emphasis on fresh foods.
It was pitched as selling niche brands which Woolies didn't stock in its then 777 supermarkets nationwide.
 
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jchancellor-FAypfDUnLy

Thomas Dux food chain listed for sale by Woolworths

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<img src="https://counter.theconversation.edu.au/content/63051/count.gif" alt="The Conversation" width="1" height="1">
GUEST OBSERVER
Woolworths’ shareholders have endured a bumpy ride these last few years. From its peak close to $40 in mid-2014, the share price has been flirting with $20 most of this year before yesterday’s rather unconvincing spike.
Woolworths’ travails of recent years have been well documented. Most notable has been the disastrous Masters foray. This slow motion train wreck got most of the attention, but in hindsight it was a sideshow. The real issue has been the assiduous ascendance of Aldi - a serious and focused competitor that has quietly, patiently but very deliberately moved into Woolworths’ heartland and destroyed its fundamental value.
Australian shoppers, once sceptical of Aldi’s rather idiosyncratic own-brand products, have embraced the German upstart with gusto in recent years. Aldi has been able to position itself as the underdog, when in reality it is one of the world’s most capable and deep-pocketed retailers. Its “piling it high, selling it cheap” approach has been welcomed by Australian shoppers who for far too long knew they were being taken for a ride by a grocery duopoly with some of the highest margins in the world.
Woolworths’ new chief executive, Brad Banducci has the unenviable task of turning all this around and yesterday he fired the one shot he probably has in the locker.
In an absolute sense the announcement yesterday was underwhelming – 500 staff to go and another 1000 moving closer to the retail frontline. Together with the mooted store closures, these add to more than $4 billion of write-downs and charges this year. Banducci has taken the charge on the capital account to embellish the profit and loss by clearing the decks of baggage.
However, the real problem is none of this does anything where it matters, in the stores where the customers are and in the relationships with suppliers. In both areas Woolworths has fundamental and structural problems and yesterday’s announcement does little to address these.
A major problem for Woolworths is its history. Woolworths became corpulent on its own success, shoehorning more and more products into its increasingly large format stores. A large format Woolworths has 15 horizontal metres of yoghurt – Aldi has about 50cm of horizontal space in its refrigerated section devoted to this product. It’s a case in point of how we humans can have too much of a good thing.
Aldi has its own version of most of the products it sells while Woolworths stocks a variety of supplier versions and quite a few of its own. Its growth in the range of what it sells, undertaken while it was riding high on a wave of oligopolistic profitability is virtually impossible to reverse.
The focus of Aldi has so many benefits – lower wastage, more reliable and economical supply arrangements and more efficient in-store logistics. These are the fundamental drivers of profitability that Woolworths simply cannot replicate.
The other major problem facing Woolworths is its relationships – with employees, customers and suppliers. While it was riding high it took the opportunity to strong-arm suppliers into supply arrangements that accrued massive profits to Woolworths, but left suppliers struggling. Woolworths’ employees too must shake their head in disbelief at the payout for outgoing CEO Grant O’Brien who was most closely associated with the Masters debacle. Customers are also are deserting in droves.
Some may hope that the future can only look better, but this hope may be forlorn. Exiting unprofitable store locations creates a vacuum for Aldi or, worse still, its fellow German retailer, Lidl.
The willingness of Australians to switch allegiance has delivered Aldi better growth in Australia than any of its other international expansions. This has not gone unnoticed in the board rooms of other global retailers. Australia is still seen as one of the most cosseted and hence promising grocery markets anywhere.
So, taken together while the times are tough for Woolworths, they may well be about to become tougher still. Buying Woolworths shares at their current level may well be a great idea - or we may yet see its shares plummet again as the realities of its huge fixed costs and shrinking margins combine to see more long term pain for the company. <a href="https://theconversation.com/profiles/john-rice-93120" rel="author"></a>
John Rice is professor of management, University of New England and can be contacted <a href="https://theconversation.com/profiles/john-rice-93120" target="_blank">here</a>.
Nigel Martin is lecturer, College of Business and Economics, Australian National University and can be contacted <a href="https://theconversation.com/profiles/nigel-martin-117971" target="_blank">here</a>.
Both are authors for The Conversation.
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Can a corpulent Woolies discard its history and fight off Aldi?

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Developer Time &amp; Place and Woolworths are set to lodge plans for a mixed-use project in Melbourne's Glen Iris.

Time &amp; Place and Woolworths secured 173 Burke Road earlier this year for $29.25 million, and this week will submit plans to the City of Stonnington for a mixed-use community on the 4,306 sqm site which was bought as a two storey office building.

The plans by Carr Architecture will see 90 apartments located above a full-line, state-of-the-art Woolworths and adjoining BWS at street level. There will be one, two and three bedroom terrace-style apartments.

Each apartment will feature its own external entry, a hero of the project's design, which allows for dual aspect and improved daylight/crossflow ventilation, while also providing an energy efficient end-product.

The project will be targeting 4-Star Green Star Rating from the Green Building Council of Australia.

Time &amp; Place principal Edward Pearse says that the design that has been put forward does not look like a traditional apartment block.

<img alt="" height="1877" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/time_place_woolworths_2.jpg" width="2000">

"It takes cues from suburban living and Australian Modernism to improve this under-utilised portion of the Burke Road."

"The design considers careful integration of the residential and retail elements to ensure a quality living and shopping experience for all end-users.

“We’ve looked to bring the best of traditional terraced homes – from their sustainable design and down to the entry experience – to a higher density project.”

The site has been identified for regeneration as part of the Council’s strategic plan for Burke Road.

Subject to planning approval, the development would create around 250 jobs as well as 120 ongoing retail jobs once complete.

Woolworths State Development Manager Don Foulds said the development application delivers a clear vision to revitalise the site and deliver a thriving, contemporary and convenient mixed-use development.

“Our proposed designs aim to reflect the unique local character of Glen Iris while delivering on Stonnington Council’s vision for high quality housing and convenient shopping for the area.”

The full-line Woolworths will face Burke Road, with the Hope Street frontage to feature an open-air stairway leading to the residences, preserving amenity for neighbours.

<h2>Developments Nearby</h2>

<a href="https://www.urban.com.au/new-apartments/hurstmon-3-hurstmon-street-malvern-east">Hurstmon, Malvern East</a>

Address: Hurstmon - 3 Hurstmon Street, Malvern East

Just over one kilometre away down Wattletree Road in Malvern East is Hurmston, a low-rise apartment development near Malvern Road.

Developed by Landream and designed by Telha Clarke, the apartment building of 39 features one, two and three bedroom apartments starting from $449,000.

<img alt="" height="1123" src="https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/pictures/article-images/hurstmon.jpg" width="2000">

The front of the property features carefully curated landscaping that mirrors the surrounding area.

Ground floor residences feature landscaped courtyards that can extend a living space into an expansive entertaining area.

 

 

 
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Developer Time & Place and supermarket giant Woolworths are set to lodge plans for a mixed-use project in Melbourne's Glen Iris.

Developer Time & Place and Woolworths to lodge plans for mixed-use Glen Iris project 

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David Jones, Australia's only upmarket department store, has fallen into the hands of South African retail giant Woolworths, in a deal worth $2.15 billion. 
Woolworths, which already has a majority shareholding in Country Road, has out muscled Myer, which had proposed a merger deal between the two departments. Myer withdrew its offer this morning.  
In an announcement to the ASX, the board of David Jones said it unanimously recommended the offer to its shareholder, which will see Woolworths acquire all of DJ's shares via scheme of arrangement. 
The proposed scheme offer is for $4 cash per share - reflecting a 25.4% premium to its closing price on 8 April. 
Woolworths chief Ian Moir said the combination of the two would create a "leading southern hemisphere retailer with meaningful scale, able to leverage common fashion seasonality with enhanced sourcing capability". 
"Woolworths will bring extra capability, financial strength and significant scale to accelerate these strategies and offer a greatly enhanced value proposition, delivering on-trend product within the most exciting and innovative shopping experience in the market".  
David Jones chairman Gordon Cairns described the proposal as "compelling", which represented a "significant premium to not only our intrinsic value but also to broker valuations and to recent share prices". 
"It represents a substantial earnings multiple". 
In reaching its conclusion, he also said the board considered a number of alternatives. 
Among them were "standalone value creation opportunities, realising the value of the freehold properties owned by David Jones or pursuing a merger with Myer. 
As at noon, the upmarket retailer's share price was up 23% or 73c to $3.923. 
Shareholders will have an opportunity to vote on the scheme proposal in late June.   
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kjiminez-eaYKfU7qd2

David Jones taken over by Woolworths SA

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Marketed as Australia's most affordable Woolworths, Burgess Rawson have the George Town, Tasmania premises listed for August 5 auction.
The 8 Bathurst Street, George Town tenants come with an established lease with 20 + 10 year lease through to 2042. 
The rent is $336,682 pa.
The 1978 square metre Woolworths at <a href="https://www.burgessrawson.com.au/3P1087#.Va8OqSqqqko" target="_blank">8 Bathurst Street, George Town</a> has been described as a "consistent and progressively performing investment" with a captive trade catchment. 
The single tenant offering has minimum management investment with income tax saving depreciation. 
George Town is described as a residential and service centre for major industry including Bell Bay Aluminium generating a 1,500 workforce. 
George Town is a large town in north-east Tasmania, on the eastern bank of the mouth of the Tamar River. The Australian Bureau of Statistics records the George Town Municipal Area had a population of 6,906 as at the 30 June 2011.
It is also a popular tourist and holiday region providing a seasonal boost. 
The auction will be held at Crown Casino Melbourne.
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Woolworths cheapest landlord offering? Burgess Rawson 

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Mirvac Group has exchanged contracts for the sale of 1 Woolworths Way, Bella Vista for $336.45 million, representing a yield of 6.07 percent.
As part of the transaction, Mirvac Projects will remain responsible for the delivery (including cost) of a new multi-story carpark via a development management agreement.
The Woolworths headquarters at 1 Woolworths Way is located 30 kilometres north-west of the Sydney CBD within Norwest Business Park.
It is 100 per cent leased to Woolworths Limited until 2031 with Woolworths recently signing a new 15-year lease extension.
South Korean-based property investors, advised by Inmark Asset Management, bought the property which was marketed by Paul Noonan, Rob Sewell and Simon Storry of JLL and Graeme Russell, Ian Hetherington and Ben Azar of Savills.
It had a recent book value of $250 million before the new lease and before the envisaged car parking arrangement.
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Woolworths HQ at Bella Vista sold to Koreans

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The Woolworths in Middle Brighton has sold for $32.08 million, billed as the highest price paid for a passive supermarket investment in Australia.
CBRE had over 280 enquiries for the supermarket, with around a third of the buying interest coming from offshore.
It went to a local private investor who will see a 3.77 percent yield from the investment which is leased by Woolworths until 2040.
The buyer, a prominent Melbourne family, beat off 15 other formal offers CBRE received.
Woolworths however do have the right of refusal to match the offer and acquire the property, which is outlined in their lease agreement.
"Woolworths has a leasehold interest in this site only and is not in a position to speak in relation to the sale process," a Woolworths spokesperson said.
CBRE's Justin Dowers, who negotiated the Woolworths sale with Mark Wizel and Kevin Tong, said there's a recipe for a highly secure retail market.
''When you couple [the] strongest population growth in the country (1.7 percent) and highest consumer sentiment levels (105.8), you have a recipe for a highly secure retail investment.
"More and more population will increase retail trade, leading to improved security for these retail leased investments," he added.
The recently refurbished 3307 sqm supermarket on Brighton's popular Church Street hadn't traded since 1985 when Sestons Pty Ltd, controlled by Laurence Teh, paid $3 million for the property.
It stands on a 4700 sqm site with 85 parking spaces on title.
The sale follows a string of Woolworths sales across Australia this year, the most recent the new site in Sydney's Potts Point which was snapped up by New Zealand investor Brain Cook.
The last four:
Potts Point - New South Wales
Auckland-based investor Brian Cook paid $16.3 million for the retail complex in Potts Point's new Omnia development. The 1,190 sqm space is pre-leased by Woolworths for the next 15 years.
Logan City - Queensland
This was a Woolworth's anchored shopping centre, which went for $38.25 million when bought by an Asian investor. The deal translated to a net yield of six percent. Woolworths, which brings in 55 percent of the centre's revenue, is joined by 13 retail tenancies.
Burnie - Tasmania
The recently refurbished 4000 sqm supermarket on 10,978 sqm sold for $18.1 million to a Melbourne investor. The site is leased by Woolowrths until 2031 with a 6.8 percent yield.
Bella Vista - New South Wales
This was in fact Woolworths HQ, which sold to a Korean investor for $336.45 million in January. The site is 100 percent leased to Woolworths until 2031 and represents a yield of 6.07 percent.
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jonathanchancellor-7SQnKwU6yx

Woolies supermarket buyers - the last four sales as Woolworths Middle Brighton sells on 3.77 percent yield

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Woolworths plans to shut 30 stores, including 17 supermarkets in Australia and six in New Zealand.
It was announced as part of a Woolworths restructuring into a new operating model that sees 500 fewer jobs, and the slowing of its store roll-out.
It involves closing underperforming outlets by the new chief executive Brad Banducci, who started in the role in February.
These 17 stores are all expected to shut before the end of the current financial year. They have not been identified from their 960 store tally, but have an average six years remaining on their lease. Under community pressure Woolworths reportedly advised that it Bundaberg region stores will not be closing.   
Woolworths also said that it has identified five Big W stores that are likely to close in the next three years based on current trading performance.
A further 34 stores across its broad portfolio are rated as underperforming.
Woolworths said there was "currently significant uncertainty around whether we would renew the lease at the end of the lease term".
These include 15 supermarkets in Australia and five metro stores.
There are also 20 development sites were the build will be delayed or not proceeded with.
He said sales per square metre and 'Return On Funds Employed' would be introduced as long-term executive performance indicators of how stores were performing under a new operating model.
Banducci had been managing director of Woolworths Food Group with 25 years in retail, including 15 years consulting to some of the world’s leading retailers, as well as private equity experience in retail.
He had had five years with Woolworths, including his role in leading the growth of Woolworths Liquor Group. During this time he was instrumental in the development of Dan Murphy’s.
The announcement comes as the German supermarket Aldi is estimated to now hold a double-digit percentage share of the Australian grocery sector.
Australian Competition and Consumer Commission chairman Rod Sims believes Aldi to now have “close to north of 10 percent of the market now”, according to Fairfax Media.
Sims believes this has knocked the dynamic duo of Coles and Woolworths down to a combined 70% share, whereas the two held closer to a 75% share a few years ago.
Aldi has over 400 stores across the country, employing over 9000 staff with sales in 2013 at just under $5 billion, up $2.86 billion from 2010.
Woolworths will open 45 stores over the next few years.
It typically closes around eight stores each year.
 
 
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