Published: 15 Sep 2009

Woollahra Council and Woolworths Limited will form a partnership to develop the current supermarket site and surrounding lands in Double Bay owned by both parties at a cost of $115m. The commercial centre will benefit from an additional $100 million per annum in revenue and the creation of more than 300 jobs.

Background

Woolworths Limited will be responsible for the development of the site. Upon completion the entire development site will be turned over to Council ownership.

The project is proposed to advance in two stages. The first stage to be constructed on lands south of Kiaora Lane will include a new Woolworths supermarket, Dan Murphy’s and Thomas Dux outlets, as well as specific retail and commercial outlets and a public car park with 500 spaces.

The second stage, fronting New South Head Road on the existing supermarket site, includes a new Council library, commercial and retail tenancies and a public arcade to improve access from Kiaora Lane and New South Head Road.

Support for the partnership

The Mayor of Woollahra, Councillor Andrew Petrie said he was excited about the proposal and the direct contribution it would make to the revitalisation of a commercial centre which has suffered as a result of the current economic climate and competition from Bondi Junction.

“Council will be making a significant investment in Double Bay to generate a substantial return on investment for the benefit of the community,” he said.

“We are taking a 29 year loan to purchase the development outright which will be fully serviced by development rentals. We have structured the partnership to ensure our risk exposure is low and our return on investment is high.

“We will be gaining better public facilities, improving the commercial viability of the centre, boosting public car parking and achieving a high quality urban design outcome. The project is good news for the Council and the community.

“I can’t think of any better way, or future opportunity we will have to improve our land asset and deliver so many public benefits.

“We are pleased to be working with Woolworths Limited who is genuinely committed to improving their current investment in Double Bay,” he said.

Woolworths Director of Property Ralph Kemmler said: “This unique development represents a significant investment in the commercial future of Double Bay. It will help encourage residents to shop locally rather than drive elsewhere to do their grocery shopping and this will have a positive flow-on benefit to other shops and services in the area.”  

Next Step

Council will proceed with preparing a Local Environment Plan and rezoning for the site. Woolworths will commence preparations of a formal Development Application. The State Government’s Joint Planning Panel will be responsible for determining the Development Application.

Extensive community consultation will occur throughout the development application and rezoning processes. For more information please view Woollahra Council's Kiaora Lands Public Briefing Paper (PDF file, 52.8KB).

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