Silk Contracts Logistics has rented a second west Melbourne warehouse from Frasers Property Industrial.
The 12,726 square metre facility, under construction speculatively within the Canvas West estate, at Tarneit, is understood to be costing the occupier in excess of $90 per sqm, per annum, ex-incentives, but this couldn’t be confirmed.
The lease period is also unknown.
Elsewhere in the west, Silk has since 2017 tenanted a 20,337 sqm warehouse at FPI’s West Park Industrial Estate, at West Park Drive, Derrimut.
It also occupies a smaller commercial building, in that suburb, at Studley Court.
Across town at Dandenong South, Silk operates out 125 Atlas Dve.
Silk Canvas West
Canvas West is taking shape on a 41.3 hectare block, 917 Boundary Road, which FPI acquired for $27.5m in September, 2019.
The Silk warehouse is designed with four recessed loading docks and a springing height of 11.5 metres.
A two storey office area will contain 505 sqm.
“The modern warehouse facility at Canvas West meets our evolving needs for warehousing and distribution services, with the broader estate also providing high-end amenities to create an engaging and healthy work environment for our staff,” Silk managing director and chief executive officer, Brendan Boyd, said (story continues below).
ResolveXO’s Nick Blakeley represented the logistics group, which is headquartered in Port Melbourne.
Canvas West filling up
Upon completion, Canvas West is expected to contain about 150,000 sqm of product.
Last January, Netherlands based Vida XL committed to a 70,000 sqm facility within the estate, expected to have an end value of about $100m.
Four months ago, FPI secured Shaw Fabrics to a 15,125 sqm space – connected via roofline to the 12,726 sqm area Silk has just rented, which is due for completion in about June.
“Melbourne is experiencing record low vacancy rates and we are seeing extremely strong inquiry for industrial facilities larger than 10,000 sqm,” FPI general manager, Andrew Hanna, said.
“With a lack of developable land options across Melbourne, our pre-lease and speculative activities within our estates are meeting the needs of many medium-to-large occupiers,” he added.
With solar panels and rainwater collection and the use of low carbon building materials, the Silk property is targeted to have a 5-star Green Star Design & As Built v1.3 rating from the Green Building Council of Australia.
Canvas West is about 25 kilometres to the CBD.
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