Property fund manager Folkestone has gained Hobsons Bay council’s support to build a Woolworths-anchored retail centre on the old Bunnings site at Altona North.
Folkestone on Friday announced the $70million development at 290-298 Millers Road, opposite its Millers Junction Home centre, which has an Aldi, Bunnings, Officeworks, Petstock, Repco, Autobarn and JB Hi-Fi Home store.
Millers Junction Retail, to be completed in 2019, will have similar-style “large format stores”. It is yet to gain final approval from the state government.
Folkestone has also entered a joint venture with property developer Wilmac for a $28million business park next door with 76 office/warehouses, known as Millers Junction Business 2.
This adds to its Millers Junction Business centre.
Originally, a family centre had been planned with a discount department store, cinema, sports and aquatic centre, childcare centre, GPs and restaurants.
However, this idea was scrapped to prevent competition with nearby businesses.
Folkestone’s real estate head Ben Dodwell said he was pleased to have entered a deal with BWP Trust, Australia’s biggest owner of Bunnings Warehouses, to buy the land.
“This, together with Millers Junction Business 2, will deliver the final stage of the Millers Junction master plan and demonstrates our ability to use our balance sheet to secure and develop investment-grade real estate across multiple sectors,” he said.
In 2014, Bunnings relocated 250 metres south in Millers Road and became the anchor store of stage one of Folkestone’s development.
