DHL commits to $83m west Sydney warehouse

The proposed DHL facility at Leppington.

ESR Australia has committed DHL Supply Chain to a temperature-controlled distribution centre for pharmaceutical products.

The 36,000 square metre facility is earmarked for seven hectares within the Bringelly Road Business Hub, in Sydney’s west Leppington.

The landlord estimates it will be worth $83 million upon completion in October.

DHL has committed for an initial 10 years.

It will consolidate existing customers; the Leppington facility also has surplus space, for new ones.

Stored stock including machinery will be delivered to hospitals, medical centres and wholesalers, DHL Supply Chain Australia chief executive, Saul Resnick, said.

ESR Australia chief executive officer Phil Pearce added development inquiry for temperature-controlled product for perishable or sensitive food has increased about 80 per cent recently.

“This is a trend we expect to continue, along with the demand generated by the ecommerce boom,” according to the executive (story continues below).

The Leppington property will be held by ESR Australia Logistics Partnership, which was recently reweighted and is now four fifth held by GIC, with the balance by ESR Australia.

The suburb is about 18 kilometres from the Western Sydney International Airport, which is under construction.

Last year, DHL Supply Chain announced plans to occupy temperature controlled facilities for healthcare products, in Sydney, Brisbane and Perth.

It committed to a 90,000 sqm factory for this purpose, in Melbourne’s north Mickleham.

On 28ha, that property was only recently acquired by Fife Capital, for c$80m.

That vendor, supermarket Kaufland, purchased the land for a distribution centre it planned to occupy, before making the surprise decision not to open in Australia.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco