Sixteen months after pre-committing to a warehouse within Frasers Property Industrial’s Braeside Industrial Estate, in Melbourne’s south east, IVE Group has leased another.
The Braeside property will be for the occupier’s IVE Retail Display business, which will relocate from Sunshine, 12 kilometres west of the city.
At 3 Beyer Road, it will contain 6436 square metres of industrial space and 62 car parks.
It is also designed with a 479 sqm mezzanine office.
IVE Group has signed for an initial term of seven years.
In about October, 2027, it can exercise the first of its two five-year options.
The print communications and marketing services company was the first occupier at FPI’s Braeside Industrial Estate, leasing 14,000 sqm.
The industrial park, 25 kilometres from the city, is being developed on a 23-hectare site the landlord purchased from Lloyd Williams’ Hudson Conway in 2018.
Once occupiers are found for six hectares on the parcel’s eastern block – the estate is filled.
IVE Group now a major south-east Melbourne occupier
Following its latest lease deal, IVE Group will occupy three south-east Melbourne warehouses: the other, in Keysborough, four kilometres east of Braeside, is coincidentally in another FPI estate (story continues below).
All up the occupier has rented 27,848 sqm from the landlord since 2014.
Its 3 Beyer Rd facility will include a 32 metre wide propped awning, LED high bay lighting and is designed to achieve a 5 Star Green Star Design and As-Built v.1.1 certificate rating from Green Building Council of Australia.
E-commerce + working from home movement keeps Melbourne industrial resilient: Frasers
“Braeside Industrial Estate has drawn several major companies as a direct result of our proven track record in the south east, supported by tailored building designs and commercial teams,” Fraser Property Industrial general manager, southern region, Anthony Maugeri said.
“The industrial market remains resilient in the current economic climate when compared to other property types.
“There has been a lot of activity, with some businesses benefiting from e-commerce and the working from home movement generating further interest in warehouse space.
“The rise of e-commerce has seen a shift from retailers operating out of physical shops to increasing warehouse space to accommodate growth in online shopping,” the executive added.
“Supermarket occupiers are also seeking short-term leases to fill additional needs.
“Several local companies are also looking at the onshoring of production to decrease reliance on overseas supply chains and inventory levels are being reviewed to ensure they have enough stock during times of change or emergencies”.
FPI is a business unit of Singapore listed Frasers Property Limited, which has assets under management worth $A40.1 billion.
With a focus on logistics properties in Australia and Europe, FPI’s portfolio is valued at $A5.5b.