Amajor multi-million-dollar expansion of the Marketplace shopping centre in Mount Gambier has been announced by a listed Adelaide developer.


Axiom Properties Limited has entered into a conditional contract to purchase 6.12 hectares of vacant land from Woolworths Ltd for $9.2m to develop another shopping centre.


This new land purchase is comprised of two separate sites which both sit immediately adjacent to the Mount Gambier Marketplace.


Under the terms of the purchase agreement, Axiom Properties will have up to two years to achieve all the associated approvals and a sufficient level of leasing pre-commitments in order to achieve financial close of the project and commence construction of the development.


The sites enjoy high exposure to the major arterial highway of the Riddoch Highway.


In its statement to the Australian Stock Exchange, Axiom Properties Limited said initial development analysis suggests the main site of 4.3 hectares can accommodate up to 17,000 square metres of retail space to sit alongside the established Marketplace centre to form the dominant retail offering in the catchment with ample parking and convenience.


Axiom Properties managing director Ben Laurance said strong interest from major large format retailers has already been expressed in the project.


“Given the current uncertainty in the various factors affecting the property sector generally, Axiom Properties is confident it has the time, terms and experience to navigate through the current headwinds and see this project through to a successful outcome for all stakeholders and parties,” Mr Laurance said.


“We are buoyed by the level of interest already shown in the project by Axiom’s retail partners.


“The acquisition will be funded using a combination of balance sheet capital and debt.”


The Marketplace was erected on a greenfield site at a cost of $80m and opened in August 2012.


Among its current major tenants are Woolworths, Bunnings and Big W.