Aldi checks out of ‘ghost’ supermarket, empty for a decade

Caringbah Marketplace was once home to a Franklins outlet, the locally owned discount supermarket chain, which was bought by Metcash in 2011 and its stores were sold.

The freehold was owned by billionaire businessman Paul Lederer, who sold the property – 287 Kingsway in Caringbah – to Aldi in 2014 for $5.5 million, property records show.

As Aldi formulated its plans, rumours have swirled about the site’s future. There was talk that it might be transformed into a haunted house-style attraction or an amusement park.

When Aldi finally lodged its development application in 2023, it proposed to demolish the dilapidated building, replacing it with a new supermarket, liquor store and cafe at a cost of about $14 million. That proposal was ultimately rejected.

A spokesperson said the council had assessed a development application for the vacant property, which was subsequently referred to the Independent Sutherland Local Planning Panel for determination.

“The proposal … was ultimately rejected by the planning panel on a number of grounds, including the design and layout of the proposed development as well as concerns over vehicle access and servicing the site,” they said.

“While the rejuvenation of Caringbah town centre remains a key priority for council, there are presently no plans before council for the redevelopment of this site.”

Aldi’s initial vision was even more ambitious: to not only build a new supermarket but add 58 apartments above it. After feedback, that plan was dumped before Aldi’s official application two years ago.

Had it gone ahead, the supermarket plus apartments project would have been Aldi’s first foray into residential development, an initiative other major supermarket chains are already taking as the nation battles with an undersupply of homes.

One recent example of that is in Melbourne’s south-east, where Woolworths, in collaboration with developer Time and Place, has been given the green light to develop a $150 million mixed-use building. Expected to be completed by 2027, Woolworths will occupy the bottom floor of the proposed five-storey building with 60 apartments above.

An Aldi spokesperson said the supermarket operator had pursued development at Caringbah Marketplace since purchasing the site in 2014.

“The operating context has changed since then, and the site now has potential beyond what Aldi requires – so we are offering it for sale,” they said. “We look forward to working with the future owner to deliver a store for the local Caringbah community.”

The supermarket chain is looking to sell the 1815-square-metre property to a developer with a lease agreement in place, installing it as the anchor tenant once a new supermarket is developed at the site.

The Caringbah Marketplace listing comes amid intense efforts by the NSW government to pave the way for more housing. It has issued a number of measures to ramp up residential development, rezoning suburbs across the state to allow the construction of apartment buildings up to six storeys, terraces and townhouses in about 171 suburbs.

The housing industry has urged the Minns government to hasten approval times for three- to six-storey, mid-rise apartments to within three months.

Caringbah Marketplace is being marketed by JLL’s Sebastian Fahey, David Mahood and Dylan McEvoy. They declined to disclose a price guide.

Fahey said supermarket development sites were becoming increasingly rare in Sydney. The Caringbah site is 23 kilometres from the CBD and four kilometres from Cronulla beach.

“We anticipate strong interest in the Caringbah site from a diverse range of investors, including international, interstate and local developers, drawn to the site’s potential Aldi income stream, in addition to substantial mixed-use potential across residential and student accommodation,” he said.