Woolworths Launches Legal Challenge Over Neutral Bay Supermarket Redevelopment

Woolworths has filed a legal appeal over the redevelopment of its Neutral Bay supermarket, escalating a long-standing dispute over the $169 million project. The appeal follows delays in the decision-making process, which led to the application being “deemed refused.”



Background of the Dispute

The proposed development (10.2024.00000281.001) was lodged by Woolworths subsidiary Fabcot Pty Ltd. It seeks to transform the existing supermarket site at 1-7 Rangers Road and 50 Yeo Street into a mixed-use complex. Plans include an eight-storey building with 70 residential units, a modernised Woolworths supermarket, additional retail spaces, a public plaza, and 326 basement parking spaces.

The project has been under review for more than two years, and NSC is under scrutiny for its prolonged assessment process. Community feedback has been divided, with some residents welcoming the revitalisation while others opposing the scale and height of the development.

Proposed Woolworths supermarket and public plaza at Neutral Bay.
Photo Credit: DA/10.2024.00000281.001

Details of the Proposed Development

Designed by Koichi Takada Architects, the project would replace the existing supermarket and commercial building with a structure ranging from six to eight storeys. It includes:

  • 70 residential apartments (11 one-bedroom, 29 two-bedroom, 28 three-bedroom, and two four-bedroom units).
  • A redeveloped Woolworths supermarket spanning 3,850 square metres.
  • Specialty retail space covering 1,352 square metres.
  • A future medical centre occupying 2,389 square metres across two floors.
  • A public plaza of 1,100 square metres.
  • An underground five-level parking facility with 342 spaces, including dedicated spots for residents, retail, and medical centre visitors.

The project also incorporates sustainable design features. Green spaces and upgraded pedestrian pathways along Rangers Road and Yeo Street were also considered.

Artistic impression of the Neutral Bay Woolworths redevelopment.
Photo Credit: DA/10.2024.00000281.001

Community Concerns and NSC Response

The redevelopment proposal has generated mixed reactions among Neutral Bay residents. Some support the upgrade, citing the need for a modern supermarket and additional amenities. Woolworths has referenced a community survey indicating 57% of respondents were in favour of the development, with many describing the current store as outdated.

However, opposition remains over the height and density of the project, with concerns about overshadowing, increased traffic congestion, and compliance with NSC’s development controls, particularly regarding parking provisions.

In response to the legal challenge, the NSC stated that the application was complex and required careful planning consideration but did not provide further comments on the court appeal.

Woolworths Neutral Bay plans
Photo Credit: DA/10.2024.00000281.001

Next Steps in the Legal Process

With Woolworths’ appeal now before the Land and Environment Court, the final decision on the Neutral Bay redevelopment will be determined through legal proceedings. The case could set a precedent for future major developments in the area, particularly regarding NSC planning approvals and private sector investment.



Should the court rule in favour of Woolworths, the project is expected to create up to 263 ongoing jobs and introduce new residential and commercial infrastructure to Neutral Bay.

Published 25-Feb-2025

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