This article is from the Australian Property Journal archive
CENTENNIAL has secured the signature of waste management solutions giant Cleanaway at its $110 million Tottenham Industrial Park in Melbourne’s west, making it three out of four tenancies leased prior to completion.
Centennial bought the 10.37 hectare industrial site late 2018 for $22 million and stage one of the redevelopment is nearing completion, with stage two due for completion in the June quarter of 2024.
Cleanaway has signed an 11-year lease on a 10,890 sqm warehouse and office facility in a deal brokered by CBRE’s Josh Deluca.
“The location and flexibility of the site ticked all of our boxes,” said executive director and CEO, industrial and logistics, Paul Ford.
“Tottenham is a prime, highly land constrained, inner-west industrial suburb nine kilometres from Melbourne’s CBD and is within close proximity to major arterial road and rail networks, plus the Port of Melbourne, eight kilometres away, which we acquired below land value with income producing quality improvements.
“Cleanaway’s upcoming move to Tottenham Industrial Park is a nod to the location of the site, our ability to partner with occupiers and the quality of the value-added refurbishments we are undertaking to appeal to range of industry sectors.”
Cleanaway’s commitment follows its appointment under the Victorian government’s Container Deposit Scheme, enabling it to commence the internal design and fit-out of its new warehouse that will house specialised recycling equipment.
Cleanaway expects to be fully operational by October 2023. Its lease includes a further 420 sqm of office space.
Joining Cleanaway in the third warehouse and office facility spanning 4,416 sqm will be US-owned shoe manufacturer, Florsheim Shoe Company, which has signed a five-year lease for its storage and distribution.
Florsheim has recently moved into its new warehouse facility leaving only one 4,416 sqm tenancy remaining.
Average prime net face rents in the west have surged 20% year-on-year to between $115 to $130 per sqm for buildings under 8,000 sqm, and $110 to $120 per sqm for buildings above 8,000 sqm, according to Cushman & Wakefield.
Centennial general manager Matt Skerrett, who heads the company’s development operations in Victoria and South Australia, said it continue to “identify and acquire quality mid-space assets throughout the southern states” where it has a portfolio of 25 assets in Victoria, three in South Australia along with a further five sites in the development pipeline.
It has 63 assets throughout Australia valued at around $1.1 billion, and a further $350 million worth of industrial and logistics projects in the development pipeline.
