Toll Global Express has committed to a Braeside warehouse its landlord, Frasers Property Industrial, has just built speculatively.
The 10,787 square metre agreement means seven investment grade assets recently developed within the estate are leased.
The deal comes a month after we reported a small number of subdivided land portions were also sold down.
Following all these transactions, FPI has one parcel – permit ready for a 31,000 sqm complex – left within the park.
The group paid Hudson Conway about $20m in early 2018 for the 23 hectare site making way for Braeside Industrial Estate.
Some 62,000 sqm of real estate has since been constructed; facilities ranging in size between 6000-14,500 sqm.
The Toll tenancy at 2 Beyer Road will comprise a 10,193 sqm high-clearance warehouse and corporate-grade, mezzanine office.
Forming part of a bigger shed (the balance which is rented to Gale Pacific), it will include a 34 metre super awning, six roller shutter doors and four recessed loading docks.
FPI is designing it to achieve a 5-star Green Star Design and As Building rating from the Green Building Council of Australia.
About 25 kilometres south east of Melbourne, Braeside Industrial Estate is near the Mordialloc Bypass, due for completion next year (story continues below).
CBRE’s David Aiello said the occupier’s requirements “were a little unique in terms of finding a facility that would cater for its all-weather loading activities, high volume of truck movements and parking”.
FPI’s ability to adapt the building it was constructing, for Toll, was critical to the deal, the broker added.
The market is facing a critical shortage of A-grade industrial assets, he said.
Frasers, Toll have relationship
The landlord’s general manager, Anthony Maugeri, said it is “delighted to secure Toll in another Frasers Property Industrial development”.
“We have previously developed for them in Port Melbourne, Truganina and Melbourne Airport,” the executive said.
“Low vacancy rates, tight land supply, rental growth and strong tenant demand for premium grade warehouse facilities have driven global businesses and ASX listed companies, he said of Braeside Industrial Estate.
“Companies looking to take advantage of new infrastructure linkages, namely the Mordialloc Bypass will also significantly benefit from moving into the industrial park.”
Last week we reported Ozito took the first tenancy – for 18,000 sqm – within a new 41.3ha FPI industrial park, Rubix Connect, in Dandenong South.
The landlord will add 15,575 sqm to that shed on a speculative basis.