Aldi has pulled the plug on its long-stalled plans to build a supermarket in Sydney’s south, putting its derelict Caringbah Marketplace site on the market after a decade of inactivity.

The 1815-square-metre site at 287 Kingsway has sat empty since Aldi acquired it from billionaire businessman Paul Lederer for $5.5 million in 2014.

Originally home to a Franklins store, the building has remained shuttered and vandalised as the German supermarket giant struggled to get redevelopment plans approved.

Aldi’s most recent $14 million proposal, lodged in 2023, included a new supermarket, liquor store, and café, but was ultimately knocked back by the Independent Sutherland Local Planning Panel over design and vehicle access concerns.

Earlier, a more ambitious plan to include 58 residential apartments above the supermarket was scrapped following council feedback.

With the project abandoned, Aldi is now offering the site to developers, aiming to lease back space as an anchor tenant once a new project is built.

“The operating context has changed since [2014], and the site now has potential beyond what Aldi requires,” a spokesperson said.

JLL’s Sebastian Fahey, David Mahood and Dylan McEvoy are marketing the property.

While no price guide has been disclosed, Fahey expects strong interest, citing the scarcity of supermarket development sites in Sydney and the location’s potential for mixed-use and residential development.

The move comes as the NSW government ramps up housing initiatives, rezoning suburbs to fast-track mid-rise developments in response to the state’s housing shortage.

Aldi’s exit clears the way for fresh development in the Sutherland Shire, with investors eyeing the site’s proximity to Cronulla and evolving demographic appeal.