HealthShare Victoria rents Derrimut warehouse from Primewest

HealthShare Victoria – which officially commences on Friday – has leased 18 Foxley Court.

HealthShare Victoria – which Jenny Mikakos unveiled three days before resigning as health minister in September – has rented a 3.5 hectare Derrimut distribution centre.

The Derrimut property includes a 529 square metre office.

The supply chain focused organisation has committed to 18 Foxley Court until 2026.

Landlord Primewest paid $24 million in May, 2017, for the then unbuilt-investment.

The 3.5 hectare distribution was occupied by CEVA Logistics for three years.

That vendor, Frasers Property Australia, offered the property with a three year rental guarantee but a month later found CEVA Logistics to occupy it for the term.

Derrimut is about 18 kilometres west of Melbourne.

HealthShare Victoria

HealthShare Victoria will absorb functions provided by Health Purchasing Victoria, which was established nearly 20 years ago, and other state medical groups.

It is intended to create supply chain efficiencies by bringing together the purchasing power of the state’s private and public hospital networks.

“Expanding centralised procurement, supply and distribution means our health services will get better prices and have an efficient network of warehouses and delivery services – with any savings to be reinvested into patient care,” a state government announcement about the organisation, said.

“[The COVID] pandemic has shown us how all of our health services working together to source the same critical medical supplies means more equipment at a better price for all of them,” Ms Mikakos added.

They will be distributed effectively too, according to the politician.

Since September, a transition team has been setting up the business’ back-end.

HealthShare Victoria officially starts operating on Friday (1 January, 2021).

The Derrimut warehouse

Primewest Industrial Income Fund No 2 holds 18 Foxley Ct, within Derrimut’s West Park Industrial Estate.

The facility includes a 22,670 square metre high-clearance warehouse accessed by six roller doors and four recessed loading docks (story continues below).

It is attached to a 529 sqm double-storey A-grade office with an elevator.

Outside there is 67 car parks and 37 metre-wide truck hardstand.

“With excellent access to all major transport links, this property provides traffic access to key infrastructure including the Port of Melbourne (14km away)…and Melbourne Airport (17km)” CBRE’s Harry Kalaitzis said.

“Primewest has been working closely with HealthShare and is excited to add them to its portfolio,” he added.

The agent marketed the property with Tom Hayes and Colliers International’s Nick Saunders and Hugh Gilbert.

The parties haven’t disclosed rental details but average Prime industrial net face rates in Derrimut are $75-$95 per sqm, per annum with incentives between 15-22.5 per cent, according to 2020 research.

West Park Industrial Estate

West Park spans streets in Derrimut, Ravenhall and Truganina.

In February, Frasers rented the last piece of the 310 hectare business park – again to CEVA which, combined with 18 Foxley Ct, occupied 238,720 sqm there.

One of the logistics giant’s warehouses, 1 Doriemus Drive, is at 500m the country’s longest single span logistics facility.

It also occupies a strategic 16.7ha site backing onto a train line.

Elsewhere in Derrimut but outside of West Park, LOGOS is constructing a c$55m printing press News Limited will rent, on part of a 27.5ha industrial park at 285 Palmers Road.

In April a 3.3ha distribution centre within the Gilbertson Estate – which at 14,917 sqm was the biggest speculative industrial project in Melbourne’s west completed in 2007 – was leased to Austpac Logistics.

Last December Charter Hall committed GWA Group to a new 12,640 sqm factory at Parkwest Industrial Estate.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of