Costco Australia is holding negotiations with the Brisbane Airport Corporation over a major land purchase, but both parties say discussions are still in very early stages and there is nothing to announce yet.
The discussions come as Costco is looking to expand beyond its single outlet in Melbourne. Managing director Patrick Noone has previously said the company is searching for a number of different sites that would accommodate the membership wholesaler’s large property needs.
A spokesperson for BAC said negotiations are currently underway but no deals have been made. The company says there are planning procedures to fulfil before any deal can be made.
“These are still quite early negotiations, and there is still a long way to go. There is nothing to report yet,” the spokesperson said.
Noone told SmartCompany the company is still negotiating with a number of different parties regarding sales on the east coast.
“We’re talking to everyone about a whole bunch of different sites, so there’s nothing to report. We’re speaking with many different people in many different cities.”
“We are looking at all the big capital cities on the east coast, and Brisbane is a terrific opportunity for us. Even other cities like Adelaide are full of opportunities, so we’re simply looking around at this stage.”
BAC currently owns the DFO outlet at Brisbane Airport, which was not included in the recent Colonial sale. The centre itself contains several thousand metres of floor space, and could be a possible location for a Costco outlet.
Recently, Costco announced it had struck a deal with the Westfield Group to develop joint sites in a number of American cities including Los Angeles. At the time, Westfield said such an agreement could also expand into Australia.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
