This article is from the Australian Property Journal archive
DISCOUNT department store Kmart Australia has signed the biggest industrial pre-lease deal in Western Australia in nearly a decade.
Savills` divisional directors James Condon and Darren Curry negotiated the deal which will see Kmart committed to a $35 million 41,700 sqm office and warehouse complex within the Jandakot City precinct at Jandakot Airport.
The facility will serve as Kmart`s distribution centre for WA. Kmart will relocate from its current facility at Canning Vale. The deal reflects the retailer`s significant growth nationally. Since engaging Savills in 2009, Kmart has opened a 76,000 sqm distribution centre at Truganina in Melbourne, a 50,000 sqm facility at Eastern Creek in Sydney, and a 51,000 sqm facility in Brisbane.
Condon said Kmart had taken a long-term lease over the facility, which includes 1ha of containerised hardstand on a 10ha site. The rental was not disclosed.
The facility will be developed by Jandakot City Holdings with construction due to start this month with an expected completion date of mid next year.
The Kmart deal is the second major pre-lease deal at Jandakot City in the last few months – following Reece Plumbing’s 15 year pre-commitment to a 25,000 sqm office and warehouse complex in December.
Condon said the Kmart and Reece deals reflected a welcome declaration of confidence in the WA economy.
“The commitment of two national corporations to major new, multi-million dollar, facilities indicates a very confident longer-term view of the strong underlying fundamentals of the WA economy and that will deliver positive momentum right across the property market.
“In particular it shows a strong level of support for the superb Jandakot City precinct which is a major 150ha estate,” he added.
Condon expects to announce a third significant leasing deal at the airport later this month further confirming the positive sentiment of major players.
Australian Property Journal
