This article is from the Australian Property Journal archive
SAMSUNG SDS, one of the world’s largest logistics operators owned by the global electronics producer Samsung, and variety wholesaler and distributor Yatsal Distributors, have leased nearly 45,000 sqm of new facilities at Aware Super’s south western Sydney industrial estate, while rents continue to surge.
Aeria, in south west Sydney, is the home of Bankstown Airport and Aware Super’s newly delivered $700 million Altitude industrial estate. Altitude is managed by Aeria Management Group and developed in partnership with Altis Property Partners and offers access to the M5 motorway, Sydney CBD, Port Botany and the new Western Sydney Airport, and is 30 minutes from half of Sydney’s population.
Samsung SDS has committed to a 26,041 sqm facility over a five-year lease and Yatsal Distributors has taken on 18,445 sqm for seven years.
Since securing Beijer Ref as the first tenant in December of 2020, Altitude has experienced rental growth of up to 120% and now boasts Hellmann Worldwide Logistics, Allied Express, eStore Logistics and Sydney Freezers as tenants.
Knight Frank data shows the amount of available industrial space across the eastern capital cities plummeted by 56% in 2022, and vacancies remain at record lows. The increasingly tight market has pushed national prime existing industrial rents up by 24.8%, the strongest annual growth seen in 34 years, JLL says.
The 46-hectare estate has 164,551 sqm of warehousing and office accommodation and the final remaining facility, of 14,615 sqm, will be available from June.
“The ability to attract and secure Samsung and Yatsal is yet another exciting milestone for the precinct’s tenants, the surrounding community and infrastructure, and for our 1.1 million members who benefit from our ability to identify strong investment opportunities such as Aeria,” said Nick Ebrill, Aware Super associate portfolio manager – property investments.
Samsung SDS’s new facility will serve as the company’s national office, with approximately 120 employees to work out of the facility.
“Being close to main arterial roads as well as easy access to Sydney’s CBD were key criteria for us as we will service both our B2B and B2C clients from this facility,” said Junghee Park, business development manager at Samsung SDS.
“This unique opportunity at Altitude was not only the perfect size, but the best location for our requirements. We’re delighted to have secured such a central location and brand-new facility in what is a very tight and constrained industrial market right now.”
For Yatsal Distributors – a family-run business founded 52 years ago and the first business to bring discount retail to Australia – the Altitude premises will also serve as its national office. After a period of significant growth it is consolidating its operations from four separate sites.
“For Yatsal, cost savings and efficiencies were the biggest driver for selecting our new facility at Altitude industrial estate. Due to the size of the facility, we will now benefit from having our entire operation under one roof and we’re looking forward to passing these efficiencies onto our customers,” Robert Salha, managing director at Yatsal Distributors said.
