The Bunnings Ulladulla site is a prime development opportunity. Photo: Knight Frank.
A Canberra-based developer that was planning a major mixed-use development on the current Bunnings site in Ulladulla has decided to put the 10,800 square metre landholding on the market.
The Fleming Group had originally submitted concept plans to Shoalhaven Council for a four-building, 250-unit development on the site at 131 St Vincents Street, as part of a rezoning proposal.
It proposed buildings ranging from three to nine storeys high (15 to 30 metres), one-, two- and three-bedroom residential apartments, commercial floor space of 5750 square metres and a 120-place childcare centre.
After community feedback, this was scaled back to 182 units and building heights up to six storeys or 21 metres.
Council approved that in June and the NSW Government’s approval of changes to the Local Environment Plan came into effect on 29 August.
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The site is now zoned MU1 Mixed Use, with a 3.5:1 Floor Space Ratio opening up the potential for 38,000 sqm of development, and future DA approvals to sit under the State Significant Development pathway.
But instead of progressing its plans, the Fleming Group will go to the market.
Fleming Group CEO Ian Fleming said that it had been a two-year process to achieve the rezoning and moving to a development application and then construction would be a costly and lengthy commitment for such a significant site and project.
He said there was now a window to test the market.
“If we don’t take this opportunity to take it to market, we’re committing to possibly 10 years,” Mr Fleming said.
“No one is interested in someone else’s DA, so you’re better off offering it to the market at this point.”
An artist’s impression of the development for the Ulludulla site. Image: Cox Architecture.
The company also had more immediate developments on its plate, including a DA-approved multi-unit project in Braddon due to start in early 2025 and a six-storey apartment development also on St Vincents Street in Ulladulla, which he hoped to start by the middle of next year.
Mr Fleming said the rezoning offered a multitude of options to a buyer, from a straight commercial or residential development or a mixture like the concept plan.
“It’s got all these sorts of things covered for whatever someone wants to do,” he said.
“There’s just that many options, which is why now is the right time to take it to market because someone might have a completely different idea that they want to do.”
Mr Fleming said Bunnings was one year into a five-year lease, but did have a DA approved for a massive development proposal on a nearby site.
Knight Frank is marketing the site and says the rezoning sets the stage for a benchmark town centre redevelopment.
Knight Frank senior director, Illawarra, Ben Churven, said the site offered income of more than $750,000 and would suit a patient investor, “but with the rezoning looking towards being able to do something pretty special on the site”.
“What someone chooses to build within that envelope is up to them, and how they choose to master plan that’s now over to the market,” Mr Churven said.
“This is one of the largest and most significant development opportunities ever brought to the South Coast market.
“With planning controls now in place, coupled with the current housing challenges we’re facing, it has the potential to redefine Ulladulla’s town centre as a vibrant, sustainable and liveable coastal hub.”
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Knight Frank says the property is strategically located on Ulladulla’s main commercial hub, close to the harbour, shopping amenities and schools, and is positioned to benefit from the $940 million Princes Highway Milton-Ulladulla Bypass and ongoing hospital upgrades that are reshaping the region.
The Shoalhaven region is forecast to grow by 23 per cent to 140,000 residents by 2046, with Milton-Ulladulla identified as a key housing and services centre.
Migration from Sydney, Wollongong and Canberra continues to underpin demand while the local economy of about 48,000 jobs is expanding across health care, construction, tourism and education.
That growth and the need for affordable housing and services drove the Fleming Group’s vision for the site.
Mr Churven said it was early days for the campaign, but it was already generating enquiries.
But he could not say what price the site could bring, given the wide choice of uses available to it.
The international expressions of interest campaign for the property will close at 4 pm on Thursday, 13 November.
