Coles eyesore attracts $300m plan

Supermarket giant Coles bought a community landmark, levelled it and did nothing on site for 15 years. Now the family behind Australia’s most Instagrammed hotel has a $300m plan for it.

The family behind The Calile Hotel – the Brisbane institution that turned James Street into one of Australia’s most photographed lifestyle precincts – has joined forces with two other Queensland developers to reveal a $300 million plan to transform the former Noosa Bowls Club site into a mixed-use destination unlike anything Noosa has seen.

Calile Malouf Investments, Frank Developments and Kilter Property have confirmed plans for 208 apartments across a range of dwelling types, nearly 2,000 square metres of ground-floor fresh market and food tenancies, a town square, and a new road connection through what has been a dead-end corner of Noosa Junction for the better part of 15 years.

Coles bought the 1.8-hectare block in November 2011 for $4,785,000. The site – once a thriving community hub – fell into dereliction before being demolished in 2020 and has sat empty ever since.

Kilter Property co-founder Huw Williams told The Courier-Mail “our focus is on delivering a well-considered mixed-use project that provides more permanent housing options, supports local workers and businesses, and delivers an exceptional product for the local market”.

The proposal remains at draft development application stage with no approval granted, calling for a four-storey build within the site’s existing 14-metre height limit.

The DA is expected to be lodged with Noosa Shire Council within two months, with construction targeted for 2028 and completion pencilled in for late 2029 to early 2030. Presales should follow once relevant approvals are secured from council.

Kilter co-founder Angus Jarmer said the site “represents a once-in-a-generation opportunity to responsibly add housing in a location where demand has consistently outpaced supply”.

He said the team had been engaging with Council throughout the design process and expected to submit the application once technical material was finalised.

Of the 208 apartments, 48 are designated as rooming accommodation – co-living units with shared kitchens and living areas aimed at key workers – and a further 48 are labelled “Affordable by Design.”

Frank Developments founder Frank Licastro said providing well-designed accommodation for key workers was “critical to supporting the local economy and ensuring the Shire can continue to thrive”.

The promise of affordable accommodation will be closely watched given median asking rents across the Noosa area range from $800 a week for a Noosaville unit to $1,325 a week for a house in Noosa Heads, according to PropTrack data.

When asked what the Affordable by Design apartments would be price-capped at and whether a legal mechanism existed to lock them into that use long-term, the development team said pricing would be “determined through the planning process and the market at the time”, adding that “government policy and approval conditions may change so the team are allowing for flexibility”.

Noosa Council, which has spent years warning the Shire’s housing crisis risks hollowing out its essential workforce, is yet to respond to questions over the proposal.

The Malouf family’s 130-year Queensland story culminated in The Calile Hotel opening on James Street in 2018, turning the precinct into a magnet for influencers and the luxury set.

CMI director Cal Malouf said the success of James Street “was built on creating places that attract locals and visitors with a like-minded sensibility in environments that speak to design, quality and intelligent curation,” and sees “a similar opportunity in Noosa to deliver a vibrant, walkable destination that combines exceptional housing, hospitality and retail in one integrated project”.

The family is already building The Calile Hotel Noosa separately, with construction underway this year, with the two projects described as working in tandem to ease housing pressure while drawing visitors to The Junction.

Those hoping for a Calile-branded pool deck open to the public may need to adjust their expectations, with The Courier-Mail told “it’s very early days, however we will explore this as both projects advance towards completion”.

Resident amenities at 99 Noosa Drive to be exclusively for those living in the development while the public offer will be the town square, landscaped areas, pedestrian connections and ground-floor retail and food tenancies.

Community engagement is expected to begin in the coming weeks ahead of formal DA lodgement.

15 years: The full Noosa Bowls Club timeline

November 2011: Coles acquires the former Noosa Bowls Club site for $4,785,000

May 2020: Building demolished by Coles due to safety concerns

2020–2026: Site sits vacant for more than six years

June 2026: $300m development plan revealed; site being acquired by consortium

Mid-2026: DA expected to be lodged with Noosa Shire Council

2028: Target construction start (subject to approval)

Late 2029–early 2030: Target completion (subject to approval)

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