This article is from the Australian Property Journal archive
ESR Australia has signed leading logistics provider Toll Group to its circa $1.2 billion Westlink Industry Park in Kemps Creek, with the two parties set to expand their current partnership.
Toll Group has committed to a 10-year lease of a circa 68,000sqm fulfilment centre covering 10.8-hectares, which will become the group’s largest distribution and fulfillment facility in the country.
Both ESR Australia and Toll Group are set to invest a combined circa $420 million into the development of the next generation facility in Sydney’s fastest-growing logistics precinct of Mamre Road.
“ESR Australia’s partnership with Toll, a leader in the warehousing and logistics industry, represents a significant milestone while further advancing Westlink’s ambition of connecting businesses to the Australian market,” said Phil Pearce, CEO at ESR Australia.
On top of warehousing, the facility will include office space, ancillary amenities and a 300-space multi-deck car park.
The new facility will also be built in line with both ESR Australia and Toll Group’s ESG commitments, construction will minimise waste, incorporate recycled materials and target a 5 Green Star Design and As Built rating.
The asset will also be powered by renewable energy via a solar panels and supported by battery storage, while also aiming to carry out sustainability initiatives including as LED lighting, rainwater harvesting and EV charging facilities.
The warehousing and distribution facility will feature $75 million of specialised automation technology to support growth in e-commerce, retail and omnichannel fulfilment.
“Toll is pleased to partner with ESR at Westlink Industry Park. The new facility will be Toll’s largest in Australia, and will feature the latest technology and automation so that retailers can deliver the best e-commerce experience for shoppers,” said Nick Vrckovski, president of retail and consumer at Toll.
While also including storage capacity for nearly one million cartons and is anticipated dispatch over 37 million items each year.
“ESR’s customers are increasingly seeking local solutions of both scale and flexibility to cater to their own customers’ needs,” added Pearce.
“Toll and ESR Australia are aligned in their commitment to providing customers with seamless logistics offerings to support their future needs as a business, which will be achieved at Westlink through automated systems and high-quality infrastructure.”
Upon completion the new Toll facility will employ more than 200 workers on-site, with the construction of the asset to generate around 300 jobs.
“Westlink Industry Park also extends ESR Australia’s focus on delivering positive environmental and community outcomes, through continued uptake of renewable energy solutions and contribution to job creation,” said Pearce.
ESR Westlink Industry Park sits approximately 52km west of the Sydney CBD, with prime exposure to the future Western Sydney Airport and excellent connectivity to major motorways, the airport, and ports.
Richard Crookes Construction will deliver the new facility, with completion scheduled for September 2024.