This article is from the Australian Property Journal archive
FIERCE competition between retailers for an edge in logistics and distribution chains has led Jaycar to sign a landmark deal with Frasers Property Australia in the Sydney’s Eastern Creek, where Frasers will build a state-of-the-art automated high bay warehouse with an end value of $80 million for the electronics specialist.
The 3.5-hectare land parcel on Eastern Creek Drive is within stage five of the Singapore-backed group’s Eastern Creek Business Park. The new centre will include a 19,928 sqm facility with an 8,000 sqm high-bay pallet store, 1,000 sqm of office space and a 567 sqm assembly and trade pick-up area.
Eastern Creek Business Park is 40 kilometres west of Sydney’s CBD and offers access to the M4 Western Motorway and Westlink M7.
Darren Curry and Ray Trimboli from Savills Australia brokered the deal.
Graeme Faulkner, chief operating officer for Jaycar, said the group had undertaken an “exhaustive search” for suitable development partners.
He said the location offered excellent access to both the M4 and M7 motorways, and combined with a state-of-the-art logistics fit-out from partner Swisslog would be a “game changer” in terms of its cost to distribute to shops and customers.
“This strategic investment positions the group to leverage growth in online retail by enabling the lowest possible cost to fulfil customer requests in an increasingly competitive space.
“The functional design is an Australian first, which incorporates both a 20,000 pallet capacity multi-deep automated pallet store as well as a fully automated 24,000 tote and carton goods to person picking system.”
He said the facility also has the capacity to accommodate phase two’s expansion plans.
Project Strategy Pty Ltd and DCL Solutions Pty Ltd are handling the design brief and project management for the transition from Jaycar’s current premises in Rydalmere to their new facility.
The warehouse will feature an ESFR sprinkler system, and in-rack sprinklers in the pallet and tote stores. The pallet store has a 29-tonne post load floor slab, 33-metre wide super awning, battery charging area and dangerous goods store, and the high bay pallet store has a 25.5-metre roof height with the balance of the warehouse roof height at 13.7 metres.
The project will be built to achieve a 5 Star Green Star certified rating from the Green Building Council of Australia.
Ian Barter, general manager, commercial & industrial northern region for Frasers Property Australia, said Jaycar’s new edge facility would Frasers’ first automated high bay project, and incorporate the very latest robotics technology.
He said Frasers had discussed automated high bay warehouse options with several customers over the past two years.
“There is increased awareness, interest in and commitment to developing these projects due to the cost of land in western Sydney and the business efficiencies they create. Based on several recently committed similar projects in greater western Sydney, we expect demand to grow for these types of warehouses.”
Neighbouring companies in the business park include Kmart, Kuehne + Nagel, Rhino-Rack, FDM, Best & Less, Fujitsu, Silk, Richo, Lite & Easy and DHL.
Shrabastee Mallik, Savills director, research & consultancy, said sales in Eastern Creek reflected more institutional investors acquiring land, allowing them to take advantage of future growth. Nearly 90,000 sqm of land was in Eastern Creek over 2017, and another 315,000 sqm in 2018.
“Overall, we witnessed almost $200 million spent on Eastern Creek industrial assets alone in 2018. Further opportunities remain for future development, with several land banks that are yet to be sold.”
Equipment solutions group Vermeer has just signed a 10-year lease over a purpose-built facility on Eastern Creek Drive from landlord FIFE Capital, and will pay $745,000 for the 4,175 sqm showroom and warehouse, on a 1.1-hectare site.
The boom in logistics and warehousing has prompted major the country’s biggest diversified developer, Stockland to offload another $600 million in retail centres and jump further into the industrial market; meanwhile, Goodman Group, which has a stable of tenants that includes Amazon, DHL, Toll and Wesfarmers, recently became the most valuable Australian property trust.
Australian Property Journal