This article is from the Australian Property Journal archive
FRASERS Property Industrial has collected a suite of major city industrial leases totalling more than 80,000 sqm, as demand for well-connected industrial facilities struggles to keep up with supply.
In Melbourne, Frasers Property Industrial has secured four leasing deals amounting to nearly 64,000 sqm in gross lettable area.
Pre-lease deals locked away are with data-driven communications, integrated marketing and production and distribution specialist IVE Group, and global supplier of paints, coatings and speciality materials PPG Australia, totalloing 45,429 sqm.
Deals have also been struck with Coolkidz Australia and automotive filtration company Ryco Group.
The 10-year deal with IVE Group marks the sixth transaction between the organisations since 2014, and will see the ASX-listed company relocate one of its existing operations within Melbourne’s south-east from Frasers Property Industrial’s Braeside Industrial Estate to the 41.3-hectare Rubix Connect estate in Dandenong South.
IVE Group’s new purpose-built facility will comprise a total site area of 52,097 sqm, containing a 32,000 sqm warehouse and 700 sqm of office space when completed in 2025.
The IVE Group lease deal was brokered by Gordon Fallance from GJS Property.
“We are excited to be expanding our operations in the region to another Frasers Property Industrial purpose-built facility in 2025. The new deal supports the next stage of our business growth strategy and further expansion for IVE Group, allowing us to better service our customers,” Matt Aitken, managing director at IVE Group said.
PPG Australia’s five-year has been struck Frasers Property Industrial’s 42.3-hectare estate, Canvas West in Melbourne’s west. PPG will occupy a 12,191 sqm warehouse with an accompanying 536 sqm double storey modern office on a 20,195 sqm site.
Canvas West is now fully leased. Other tenants include Shaw Fabrics, Silk Contract Logistics, National Tiles, Knauf, Komatsu Australia and VidaXL.
Andrew Hanna, general manager – Victoria at Frasers Property Industrial, said, “We are thrilled to be able to support the expansionary plans of our existing and new customers through our strategically located landbank and existing assets portfolio.
In addition to the two prelease deals, Frasers Property Industrial has also recently leased a 6,867 sqm warehouse within the Braeside Industrial Estate to Coolkidz Australia, and an 11,417 sqm warehouse to Ryco Group at its West Park Industrial Estate, 23 kilometres west of Melbourne’s CBD, a property owned by Singapore-listed Frasers Logistics & Commercial Trust and managed by Frasers Property Industrial.
PIP rolls into The Yards
Meanwhile, Frasers Property Industrial and joint venture partners Aware Real Estate have secured a seven-year lease with workwear, safety wear and protective wear retailer PIP ANZ Pty Ltd – formerly Bisley Workwear Australia – at The Yards, a 77-hectare estate in the Mamre Road Precinct in outer western Sydney’s Kemps Creek.
Five submarkets account for 72% of the 2.3 million sqm of industrial facilities currently under-construction in Australia, led by Melbourne’s west, Sydney’s outer west, and Melbourne’s north. For Melbourne’s west, where just over 500,000 sqm is under construction, this is matched by a similar level of annual take-up.
According to Cushman & Wakefield, there is potential for 135 facilities above 10,000 sqm to be delivered. Overlaying demand, there have been 172 lease deals per annum above 10,000 sqm on average over the past three years. Even assuming a 20% fall in deals above 10,000 sqm, and with vacancy rates currently at just 2.0%, it suggests a “severe undersupply” of warehouse space will likely remain.
PIP ANZ Pty Ltd’s new distribution centre will comprise a 14,755 sqm warehouse, a 760 sqm two-storey office and 300 sqm dock office.
Following strong business growth over the last two years, PIP ANZ Pty Ltd is consolidating two existing facilities into one distribution centre. The new warehouse will primarily be racked and used to store finished products before they are dispatched to wholesale distributors.
The facility will feature a 200 kilowatt rooftop solar system, two EV charging bays, LED smart lighting, rainwater capture and re-use, water-saving tapware, and is targeting a 6 Star Green Star Design & As-built v1.3 rating.
Frasers Property Industrial and Aware Real Estate are progressing building works at five different lots at The Yards and the estate is now 75% leased.
Civil and infrastructure development also nearing completion, internal roads and basins are completed and operational, and the second stage of external Mamre Road works, including road widening and opening of the new intersection, is nearing commencement.
“Following our strong growth over the past few years, it became clear that we needed an additional site to support our expansion. The new facility will not only improve and futureproof our operations but benefit our workforce by providing an environment that will support their health and wellbeing,” said David Gazal, CEO of PIP ANZ Pty Ltd.
Practical completion of PIP ANZ Pty Ltd’s facility is planned for June 2025.
Frasers Property Industrial and Aware Real Estate have appointed CIP Constructions as the builder for Lot 6. Construction has commenced with practical completion set for early 2025. Lot 6 is a speculative build and will feature a 17,355 sqm warehouse, an 800 sqm mezzanine office and 100 sqm dock office.
Frasers Property Industrial also recently signed a five-year lease for a 30,630 sqm facility with Communications Test Design, Inc at the estate. Also built by CIP Constructions, the facility reached practical completion in May this year and features brand new warehouse and office spaces along with an outdoor area for staff.
