Woolworths Stalls $155M Mulgrave Deal, Elanor Faces Challenges

0:00It's April 2nd. This is Sydney News Today, Local News Powered by AI, a $155 million deal to snag a massive Woolworth Distribution Center in office in Mulgrave, has stalled right at the finish. Line, ASX listed Eleanor Investors Group, teamed up with PGIM Real Estate, was ready to close on the 68,000 square meter site next to VFL Park. From billionaire Harry Stammullies, Woolworth threw a wrench in by exercising an option to stick around at the center, killing redevelopment dreams for a bigger 113. Thousand square meter logistics hub, the retailer holds 10 more 5-year options, so plans are on ice for now. Eleanor has faced tough times since the deal kicked off in 2023, posting huge losses in halting stock trades last August. They just restructured $125 million in debt, while PGIM insists they're still committed to the partnership. Stammullies bought the spot for $90.75 million back in 2017.

1:02Industrial parks are exploding nearby, like ESR and Fraser's dropping $900 million on a cranberry site, and ISPT, planning $1.1 billion down the road. Meanwhile, Carlton's historic Pelham Court office, once home to the Royal Children's Hospital, hits the market around $30 million as a development play. Other moves keep the heat on. From a Malvern petrol site and shops eyed, at $16 million, South-Year are flats at $5 million, to Cambridge Wells Meet, and wine restaurants selling for $4.1 million at a solid 5.8% yield. The sector stays prime for flips and funds.