Frasers Property Industrial has found a tenant to occupy the last piece of land at its 310 hectare West Park Industrial Estate in Melbourne’s western Truganina.
CEVA Logistics, which already occupies 238,670 square metres of industrial stock at the park (including a landmark 16ha-plus $80 million warehouse), has signed a six year lease for the bespoke facility earmarked for 8 Archer Road.
The property will contain 37,307 sqm of area – including a two storey 1800 sqm office – and 105 car parks.
Truganina is about 22 kilometres west of the city.
The CEVA Logistics warehouse: 8 Archer Road
CEVA intends to occupy a state-of-the-art storage and distribution facility from the site.
It needs the space to accommodate new vehicle logistics contracts, FPI said.
Features will include full drive around access. It will have a 10 metre springing height, and aim for a 6 Star Green Star Design & As Built rating .
To be constructed by Hansen Yuncken, the facility is set to open in August.
“One of our most rewarding success stories”: FPI of West Park
FPI general manager – Southern Region – Anthony Maugeri described West Park Industrial Estate as “one of our most rewarding success stories”.
It has been under construction for 16 years.
Amongst the neighbours are Visy Australia (which tenants a 42,770 sqm warehouse), Mitre 10 (25,157 sqm), CHEP (24,700 sqm) and Goodyear Australia (24,100 sqm).
Arlec Australia, National Tiles, CTI Logistics, Australia Post and DB Schenker are also there.
“The estate set significant sustainability benchmarks, attracted several repeat customers and won a major building award,” Mr Maugeri said.
“It was the first in Victoria to obtain a 6 Star Green Star Design and As Built rating for CEVA’s supersite and subsequently received six stars for CEVA Alliance and CEVA Tech (Nissan) [facilities].
“Five stars was also achieved for CEVA Toyota, Visy Australia and National Tiles/CTI Logistics from the Green Building Council of Australia.
“Visy Australia’s facility received the highly prized Excellence in Construction of Industrial Buildings accolade at the 2019 Master Builders Victoria Excellence in Construction Awards”.
More than 40 industrial facilities, said to have an end value of about $740 million, have been developed at West Park which is about a kilometre from the Deer Park Bypass (which connects commuters to the Western Ring Road, Tullamarine and Calder freeways and Port of Melbourne).
The site was one of the largest landholdings in Melbourne’s west, the developer said.
Why Melbourne’s west?
It is an anomaly which suits occupiers: Melbourne’s west is amongst the country’s cheapest to rent or buy industrial stock.
It is also convenient, regions like Truganina and Tarneit between Melbourne Airport, Avalon Airport, Port of Melbourne and the city’s highway network.
Rent for prime quality industrial stock like 8 Archer Road circles $80 per sqm, per annum.
“Demand in the estate was driven by population growth supported by strong economic conditions,infrastructure upgrades enhancing connectivity to road, rail and port transportation modes and rising occupancy costs,” Mr Maugeri said.
FPI recently settled on the purchase of a 42 hectare industrial zoned site at 917 Boundary Road, Tarneit – about six kilometres west of Truganina.
The developer is a strategic business unit of SGX-listed Frasers Property Limited, which holds assets under management worth approximately S$37.6 billion (FPI’s share is about S$5.2 billion).