In a bold move that highlights the ongoing transformation of Wollongong's culinary landscape, the Wollongong City Council has awarded a significant lease for the beachside restaurant at Stuart Park to The Grounds of Alexandria Pty Ltd. This marks an exciting new chapter for the iconic location, as it will be The Grounds' first establishment outside of Sydney.
The restaurant, which has been known as The Lagoon since it opened its doors in 1986, is situated on the Stuart Park Crown Reserve. With the current lease set to expire in July 2026, the Council took proactive steps by initiating an open tender process, inviting proposals from seasoned hospitality operators eager to capitalize on the stunning oceanfront setting.
On the evening of December 15, 2025, the Wollongong Council reached a unanimous decision to proceed with a recommendation to grant the lease to The Grounds of Alexandria Pty Ltd. This agreement stipulates an initial five-year lease starting in late 2026, with an option for an additional five years thereafter.
The Grounds is renowned for its flagship venue located in Alexandria, along with additional sites in South Eveleigh and the central business district of Sydney. The new lease entails the introduction of their distinctive style and high-quality food and beverage offerings to one of the most frequented spots along Wollongong’s picturesque Blue Mile.
Ecstatic about this development, Lord Mayor of Wollongong, Councillor Tania Brown, expressed her enthusiasm for both the restaurant site and the city's potential to attract a leading hospitality brand like The Grounds. "Our priority as a Council is to draw in new businesses and investment, and it’s incredibly promising to see a major player recognizing Wollongong’s potential for expansion beyond Sydney," Cr. Brown remarked.
The Grounds is celebrated for its visually striking venues and exceptional dining and event experiences. Their proposal for the Stuart Park site revealed ambitious plans that promise to enhance the area for both residents and visitors alike.
Additionally, the Council also unanimously approved a recommendation to renew the lease for the North Wollongong Beach café and kiosk to the existing operator, North Kiosk Pty Limited. This new lease will span five years, with options for two additional five-year terms.
Before the second phase of the North Wollongong Beach sea wall project commences, the Council will enter into an Agreement for Lease concerning the café and kiosk structure. This agreement will facilitate tenant improvements and upgrades during a closure period, ensuring that the venue is ready to welcome back patrons once the renovations and associated works are complete.
Cr. Brown noted, "By awarding leases for two of our city’s most cherished and frequently visited hospitality venues, we are contributing to a diverse economy that provides a range of food and beverage choices in prime locations."
She emphasized the Council's commitment to maximizing commercial returns for the community, stating, "We engage independent market rent assessments to inform our leasing negotiations. Most rental income surpasses the independent market guidance, and our commercial leases include provisions for turnover, annual increases, and market rent evaluations to keep pace with economic conditions throughout the lease duration. We intend to maintain this strategy as we renew commercial leases in the future."
With the new lease in place, the café and kiosk will operate alongside the newly completed sea wall and the extended Emma McKeon promenade, allowing the community to enjoy one of the premier spots along Wollongong's foreshore for years to come.
The Council conducted a legally mandated open tender process for the café and kiosk lease before endorsing a recommendation on November 17 to enter direct negotiations with the three initial bidders for what could be a 15-year lease. In accordance with the Local Government Act, which governs the management of community land, the Council must notify the public regarding the proposed new lease agreement. Following the endorsement, the lease will be finalized once the mandatory public notice period concludes and any public feedback has been duly considered.
