This article is from the Australian Property Journal archive
BOOK publisher Penguin Random House has pre-committed to 10-year lease over a new major distribution facility in Dandenong South, accounting for more than half of the 68,586 sqm of new deals secured in Melbourne by Frasers Property Industrial, and the largest deal in the south east since 2012.
The Penguin Random House facility at the Rubix Connect estate, to be built for its distributor United Book Distributors, totals 38,225 sqm and takes commitments at the estate to 72%, with completion expected in 2025.
Designed to double the capacity of the company’s operations and distribution of books, the facility will incorporate “goods to person” automation and feature a 40-metre hardstand, a 14.6-metre ridge height clearance, 12 recessed loading docks and nine on-grade roller shutter doors
“This is a significant investment in the future of our distribution facility and we are confident this expansion positions us for continued growth and industry-leading service and speed to market for our valued customers,” said Julie Burland, CEO of Penguin Random House ANZ.
The deal was brokered by David Black from Salinger DC&W.
Also at Rubix Connect, “one of the largest and fastest growing global trading companies based in Melbourne” has committed to a 11,425 sqm storage and distribution facility for seven years, Frasers Property Industrial said. The facility will have a 20-metre awning, a 13.7-metre ridge height clearance, four recessed loading docks and four on-grade roller shutter doors.
They will join Freedom Furniture, Visy and Décor Corporation at the 41.3-hectare estate.
Andrew Hanna, general manager – Victoria for Frasers Property Industrial said, “We are delighted to be partnering with Penguin Random House and United Book Distributors and our other valued customers on their new facilities.”
In the western suburbs, at Canvas West in Tarneit, a global manufacturer and supplier of building products has committed to a five-year lease of a 6,850 sqm distribution centre. Construction of the built-to-suit facility by appointed builder Texco is underway and is expected to reach completion in early 2024. The warehouse will include two recessed loading docks, a 20-metre awning, a 14.6-metre ridge height, 12.2-metre springing height and nine-tonne post-load.
They will join National Tiles, Komastu Australia, Silk Contract Logistics and Shaw Performance Fabrics at the 42.3-hectare master-planned Canvas West estate.
Additionally, integrated freight and logistics company Navia Freight has committed to a 10-year lease for an existing 12,086 sqm facility at 28-32 Sky Road East at Melbourne Airport, which is owned by Frasers Logistics & Commercial Trust.
The new facilities at both Canvas West and Rubix Connect are both targeting a 5-Star Green Star Design & As-Built v1.3 rating from the Green Building Council of Australia. They will incorporate solar panels, rainwater harvesting, LED lighting, and landscaped outdoor areas.
The deals follow Frasers Property Industrial spending $87 million on a 41-hectare development site in the northern Melbourne suburb of Craigieburn, with plans to establish a new master-planned estate.
Also yesterday, Amazon announced a new robotics fulfilment centre in Craigieburn that at 209,000 sqm will be the largest logistics facility ever built in Australia, and house up to 25 million items sold on the retail behemoth’s platform.
Excavation works have started at the Craigieburn Logistics Estate, in Craigieburn, which is owned by AustralianSuper and being managed and developed by Logos. Completion of the centre is targeted for 2025.
