Centennial Industrial & Logistics has committed Scania to part of a Campbellfield industrial investment it picked up six months ago.
As well as the lease deal – for a modern 9364 square metre distribution centre – the landlord has announced it will build two warehouses on the balance of the 3.6 hectare site.
Upon completion, the asset at 40 Decco Drive will contain 16,864 sqm of lettable area.
Campbellfield is about 16 kilometres north of Melbourne
40 Decco Drive, Campbellfield
Scania will use its facility – formerly occupied by Preston Motors Group – for its spare parts business.
With extensive turning capabilities, multiple loading areas and high clearances, the initial lease term is 10 years.
The truck and bus business, represented by CBRE’s Tony Tripodi, presently occupies another warehouse in the suburb.
Mr Eramo said the Decco Dve transaction underlined the current strength of Melbourne’s industrial leasing market (story continues below).
“Prime grade distribution centres within Melbourne’s north continue to be highly sought after from occupiers,” he said.
“This is paving the way for an expected influx of speculative development through the final quarter of this year and first quarter of 2022 to meet the increased demand,” he added.
The spec buildings
Centennial will now build two warehouses – with 2240 and 5660 sqm – around the Scania warehouse.
Each will also contain offices and multiple at-grade shutter doors.
“Lease absorption of existing buildings in the first quarter of this year has been at an all-time high in comparison to previous years, with approximately 80,000 sqm leased year-to-date,” according to Mr Eramo.
The Decco Dve holding is separated by a rail line to a 25ha ex-Woolworths distribution centre – 120 Northcorp Boulevard, Broadmeadows – which LOGOS and Ivanhoé Cambridge are replacing with a $230m business park.
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