Fresh plans as Mirvac flips $233m flood-ravaged shopping centre site
The Toombul Shopping Centre just before demolition began in 2024. Picture: Facebook/Steve Muir-McCarey
Industry titan Mirvac has thrown in the towel on its $233m flood-ravaged Toombul shopping centre site, deciding to offload the property to a local developer following clashes with residents and tenants that included a $10m Kmart court battle.
The much-loved Toombul Shopping Centre – built in 1967 on floodplains on the banks of Kedron Brook – had been ravaged by floodwaters for many years before Mirvac decided to buy it in 2016, including the massive January 2011 Brisbane floods.
But when the most recent floodwaters receded in 2022, the mud began to fly with Mirvac announcing it would not reopen or rebuild the centre, effectively turfing out everyone from Kmart to doctors to supermarkets.
Kmart – owned by the $91.77billion Wesfarmers juggernaut – refused to take the closure lying down, filing a $10m civil suit against Mirvac backed by a lease that reportedly ran to 2027 at the site.
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All roped off – the old Toombul shopping centre site earlier this year after demolition. Picture, John Gass
The Courier-Mail court reporter Vanda Carson reported extensively on the Kmart filing in Brisbane’s Supreme Court in December 2023, which alleged that the decision to permanently close Toombul was “an unequivocal manifestation by Mirvac of an intention not to perform its obligations under the lease including the obligation to.. expend insurance monies to rebuild the centre”.
Mystery now surrounds the outcome of that case, with no public record available for how Mirvac responded to the Kmart claims and if any payout was made to the firm as a result.
Around 130 retailers were blindsided by the shutdown of the Toombul Shopping Centre, with some closing up for good, while community fervour over the site remains strong, given many families lost touch with the likes of doctors, vets and other specialists who’d been forced to relocate much further away.
The shopping centre, just 7km from the Brisbane CBD and close to premium suburbs like Ascot, Hamilton, Hendra and Clayfield was a hub of activity when Mirvac exchanged contracts for it in 2016. At the time it had a moving annual turnover of $234,1m, site area spanning approximately 98,850 square metres, and total gross lettable area of over 44,000 square metres – anchored by Coles, Kmart, Aldi and BCC Cinemas.
The ghost of all those retailers and community hopes sit with private Brisbane-based firm Irvine Property Group who were announced as the new owners for an as-yet undisclosed sum.
The cleared site is surrounded by residential apartment buildings. Picture, John Gass
In a community update sent out by Mirvac, Irvine Group Managing Director Michael Irvine said his team was “thrilled” to take on the project and pledged to make the new Toombul “a place for everyone”.
“Our priority is to deliver a new shopping centre as the first stage of a retail-led mixed-use development,” Mr Irvine said. “We understand how much this place means to the community – and we’re ready to get started.”
The Mirvac team said the decision to sell was “incredibly difficult” but the right step to get redevelopment moving again after extensive demolition and remediation works.
“After several months of carefully considering the best path forward for redevelopment, we have today (Wednesday) exchanged contracts for the sale of the site to Brisbane-based Irvine Property Group, a step that will enable fresh investment and the planning of an exciting new mixed-use precinct, including a new shopping centre.”
The statement said “due to the scale of the site and extensive remediation works required, we are unfortunately not in a position to take this redevelopment further on our own at this time.”
“We’ve found the right partner who shares our vision and values,” the Mirvac team said. “Irvine Group has the local knowledge, the delivery capability, and the commitment to make Toombul shine again.”
The new plans are expected to include shops, housing, green space and dining – all designed around a flood-resilient, modern precinct.
The raised airport train line runs beside the property, with the creek below it the main culprit for flooding in the area. Picture, John Gass
Settlement of the sale was expected to take several months, after which Irvine would lead the next phase of development, with any new applications to go through Brisbane City Council’s public consultation process again – with Mirvac assuring the community they would have another chance to have their say.
Mirvac has partnered with Irvine Property Group in the past and the local developer has delivered luxury projects at Newstead, Teneriffe and Bulimba.
