Amart Furniture pre-commits to landmark $65 million Melbourne distribution centre

Amart Furniture has signed a 10-year pre-commitment for a 48,770 square metre distribution centre in Melbourne’s west.

Goodman will construct the “state-of-the-art” purpose-built complex at its Connectwest Industrial Estate on Logistics Drive, Truganina.

Goodman specialises in delivering logistics space, globally.

Amart Furniture was represented by TM Insight, a consultancy service which works closely with clients with warehouse transforming requirements.

The Truganina property is expected to open in the first half of 2020.

Amart Furniture chief executive officer Lee Chadwick said the proposed distribution centre would replace an existing cluster of warehouses it occupies in Somerton, about 21 kilometres north of the Melbourne CBD.

“Mr Chadwick said creating a “modern, safe and flexible workspace” was one of its top priorities when designing the new facility.

Goodman recently secured Pacific HVAC Engineering as tenant for an office/warehouse it is building speculatively at its Chifley Business Park at Moorabbin Airport.

The company’s chief operating officer Scott Pears added that the proposed contemporary centre is expected to deliver faster delivery times.

“The new Truganina distribution centre will streamline our supply chain network in Victoria and enable us to continually improve quality and customer service,” Mr Pears said. “This modern and consolidated design will allow for direct customer-to-customer deliveries, from either in-store or online purchases”.

TM Insight director Travis Erridge said a comprehensive review process was undertaken at the start of the project to evaluate Amart Furniture’s current conditions and operations, design a leading-edge supply chain solution and select the best location for development.

Truganina is about 22 kilometres west of the city, between Melbourne Airport and the Port of Melbourne and close to the Western Ring Road.

“This review informed the design of the new facility, which will optimise operations into one location, propelling Amart’s supply chain into the next generation,” Mr Erridge said.

Features of the Truganina centre will include:

• significant expanse of racked storage locations to house products of various sizes;
• drive-around design with dual loading faces;
• mix of recessed loading docks and on-grade roller doors; and
• a cross docking facility design with two large staging areas for inbound and outbound freight.

Mr Chadwick said Amart Furniture’s major infrastructure commitment in Truganina places the company in a strong position to drive its ongoing growth in Victoria.

An artist’s impression used in the marketing for Merrifield Business Park, in Mickleham – where Kaufland is building a 115,000 distribution centre.

“This is another important step for Amart Furniture as we continue to invest in the business and establish a strong position from which to grow and expand over the medium to long term,” he said.

Amart was established in the 1970s to provide modern furniture at a budget.

It trades from 66 locations nationally, recently adding designer furniture to its stocklist.

The retailer is best known for its lounges, sofas, bedrooms, mattresses and outdoor settings.

Last month German hypermarket Kaufland paid $28 million for a development site in Mickleham, in Melbourne’s north, where it is proposing to build a 115,000 sqm distribution centre.

Last week we reported that Goodman had secured Pacific HVAC Engineering as a tenant for an office-warehouse it is building speculatively at Moorabbin Airport.

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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