Harvey Norman will part of a 50 per cent stake along with Charter Hill in the development of a 60,000-square metre bulky goods centre at Gepps Cross, 10kms north of the Adelaide CBD, for $25 million, while Axiom will purchase the other 50 per cent currently owned by Pivot Group.

Harveys’ will become the anchor tenant at the centre with a 12,000 square metre store.

In addition, a second bulky goods retail project is being developed in Mentone, Melbourne, between the three players – Pivot, Harvey Norman and Charter Hill – as an extension of the “successful relationship” at the Mentone site, said the companies.

The three developers have agreed to buy the 16-hectare site on Main North Road from Axiom’s major shareholder, Peter Laurance’s Pivot Group. Earthworks have reportedly commenced and construction is expected to start early next year, for a March 2009 opening.

Axiom managing director, Ben Laurance, said that bulky goods retailers had pointed out the shortage of quality, large-scale homemaker centres in Adelaide, and it was therefore no surprise that expressions of interest had been received for most of the proposed tenancies.

“This will be one of the biggest bulky goods centres in Australia, so it will be truly a one-stop comparison shopping destination on one of the most high profile sites in Adelaide,” he said in a notice to shareholders.

“The fact that Harvey Norman is taking their biggest format store gives the stamp of approval to the site and is a strong endorsement of the quality of the development.

“Significant interest from most of the high quality National retailers with proven trading records has been received for the major part of the rest of the centre.

“The zoning sensibly permits more than a dozen small food and beverage tenancies, so the whole centre will be a family-friendly shopping environment.”

The Main North Road centre is being leased by John Savva of CBRE Adelaide, and Jeff Klopper, CBRE’s national leasing director. HOME HQ Gepps Cross, as the centre will be known, is expected to have an end value of $150 million.