FORGES' NEW STRATEGY
Posted on 07 March 2009
Melbourne's western suburbs is losing one of its largest and proudest retailers, with Forges of Footscray confirming it will sell its almost one hectare land holding, part of which abuts the Nicholson Street Mall. The sale is believed to be part of a strategy by the discount retailer to open smaller, 1000 square metre shops in a greater number of areas and cash in on the current cash strapped economy. News of the Footscray sale follows the offloading last year of Forges' Dimmeys Richmond property for $16.5 million to private developer Joel Freeman. Dimmeys is expected to occupy a small piece of a retail space within a redevelopment of the prominent Swan Street building. Vinci Carbone Directors Frank Vinci and Joseph Carbone are marketing the Forges of Footscray properties, which spread over Paisley, Albert and French Streets and include buildings and land used for car parks. The sites are expected to sell for about $15 million and eventually be developed into a major inner city shopping centre, possibly with some form of high rise residential. Forges Managing Director Doug Zampelli was unavailable for comment when contacted by Capital Gain.