Techtronic Industries (TTI) has leased its second Australian distribution centre in as many years, this time in Melbourne.
The Hong Kong listed power tools maker has pre-committed to a 74,200 square metre automated facility within the Melbourne Airport Business Park, 14 kilometres north west of town.
The occupier is speculated to be paying rent of about $90 per square metre, per annum, ex-incentives.
Due for completion about this time next year, the end value has been put at $130 million – not that the landlord, Australia Pacific Airports (Melbourne), also reported as Melbourne Airport Corporation, will sell it.
The deal comes 16 months since TTI leased a 73,920 sqm distribution centre within Altis and FPI’s 118ha The Yards business park, at Sydney’s Orchard Hills, near the Western Sydney International Airport, which is under construction.
The group’s brand portfolio includes AEG, Hart, Hoover, Kango, Milwaukee, Oreck and Ryobi.
TTI comes to Melbourne
The TTI facility is the second biggest to be announced at the 410ha Melbourne Airport Business Park (in 2020, CSL-backed Seqirus committed to a 118,000 sqm, $800m manufacturing plant there).
“Our location will bring a lot of value to Techtronic’s distribution business, enabling easy access to their various markets,” Melbourne Airport’s head of Commercial Property and Retail, Andrew Gardiner, said. Texco will now construct the building. TTI was represented by TMX.
Other occupiers include Reece, which pre-committed to an 11,670 sqm complex on 4.7ha two years ago and FJT Logistics, which filled a tenancy quit by rival Nippon Express – also in 2020 (story continues below).
Porsche, TNT and Toll rent there too as does Amazon, with a small (330 sqm) tenancy for its Flex division.
Airport owners build portfolio
APA(M) is controlled by five major fund managers.
AMP Capital owns the largest stake – 29 per cent.
Deutsche Australia and the Future Fund each retain about a fifth.
As well as the industrial assets, the landlord owns Essendon Football Club’s True Value Solar Centre and the neighbouring UrbnSurf complex, the latter which replaced the Melbourne Airport Club.
APA(M) also recently completed a 10 storey dual branded hotel near Terminal 4.
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