Metcash Commits to 82,000 Sqm Industrial Facility, Sydney

Goodman had previously developed Metcash an 89,000 square metre facility in Crestmead, Queensland.

Goodman released a statement about the transaction, which is copied below:

Goodman Group (Goodman or Group) today announces that it has secured a pre-commitment for an 82,015 sqm warehouse and office facility to be developed for Metcash Limited (Metcash) at Bungarribee Industrial Estate in Western Sydney.

Metcash is Australia’s leading wholesale distribution and marketing company specialising in grocery, fresh produce, liquor, hardware and other fast moving consumer goods. The purpose-built distribution centre for Metcash is one of the largest industrial developments to be undertaken in Australia this year and the first pre-commitment at the 56 hectare estate which is bordered by the M4 Motorway, Great Western Highway and Brabham Drive in Huntingwood West in Sydney.

The facility will become Metcash’s primary NSW distribution centre for the storage, handling and wholesale distribution of Metcash’s grocery, liquor, fresh produce, general merchandise and CStore divisions. The distribution centre will include a 75,535 sqm warehouse and 6,480 sqm of office space and the facility has capacity for 22,000 sqm of future warehouse and office expansion space. A 15 year lease term with options has been agreed.

Goodman Group’s General Manager, Australia, Jason Little said: “This pre-commitment with Metcash highlights the momentum that continues to build across our Australian business. Our leading operating platform, proven own+develop+manage approach, extensive customer relationships and significant development capability have enabled us to capitalise on high quality opportunities such as this.

“Metcash has been a Goodman customer since 2000 and we have previously developed an 89,000 sqm facility for them at Crestmead in Queensland. The Bungarribee development is testament to the strength of our relationship and we are excited to be delivering another high quality development for Metcash.”

Development of the facility will commence in December 2010 and will be built over three stages with delivery dates between October 2011 and May 2012. The development will enable Metcash to consolidate five existing facilities across Sydney, covering more than 79,518 sqm. It is anticipated that 600 employees will be working at the new facility on completion, which has also been targeted for a Four Star Green Star rating from the Green Building Council of Australia.

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Marc Pallisco

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