Stockland secures Apergy, Dotmar and Medline to $188m Willawong Distribution Centre

Three tenants have filled the 18,500 square metre complex which Stockland has just completed building.

Stockland is reaping a reward for its decision to speculatively construct the first stage of a south Brisbane logistics park – an 18,500 square metre facility – securing three tenants for periods of between five and eight years.

With the commitments of Apergy, Dotmar and Medline to the $188 million Willawong Distribution Centre, the landlord has started building a 25,400 sqm warehouse – stage two – again on a speculative basis.

Willawong is about 19 kilometres from the CBD.

Three tenants means higher effective rent, lower risk: agent

Two of the three tenants to commit at 93 Burman Road, Willawong, are headquartered in the USA: oil and gas company Apergy, from Texas, has rented 6759 sqm, while healthcare group Medline, from Illinois, is taking 6480 sqm.

Both agreements are for an initial five year term.

The third occupier, Dotmar Engineering Plastics, from Melbourne’s Dingley, has committed to Willawong Distribution Centre until 2028.

“While the current business and economic situation is challenging, logistics facilities play an important role in helping businesses provide essential food, goods and services for Australians,” Stockland general manager, Workplace and Logistics, Tony D’Addona, said.

“We’re delighted to have attracted such prestigious businesses to the first stage of this development and are pleased to be able to provide certainty for their operations with long-dated lease agreements”.

Knight Frank associate director, Industrial Logistics, David Knox added that as part of the agency’s ongoing marketing submission for the estate, it recommended to speculatively construct the next stage, a building to be known as 221 Gooderham Road, “due to the competitive pre-leasing market at the time and Willawong…being seen as a burgeoning industrial location”.

The executive said by having three separate covenants it was able to achieve a higher effective net rental and mitigate future leasing risk than would have been the case renting the 18,500 sqm building to one user.

Mr Knox is marketing Willawong Distribution Centre with colleagues Lachlan Hateley and Mark Clifford and JLL’s Sam Stewart and Shaun Canniffe.

Willawong Distribution Centre

Willawong Distribution Centre abuts the landmark 14.65 hectare PrixCar service processing plant, purpose-built in 2015 by Commercial and Industrial Property (CIP) and local developer, Chris Matheson, following a 25-year pre-commitment.

Stockland’s block is 22 hectares.

It has made significant infrastructure investments in and around it including creating a connection to Learoyd Road.

Upon completion the estate is expected to accommodate about 100,000 sqm of industrial space.

The complex is near Logan Motorway Beaudesert Road and Acacia Ridge Rail Yards.

“Located close to rail, road and airport connections, Willawong Distribution Centre is a state of the art, sustainable facility with quality design, safety and efficiency features,” Stockland head of Development and Design, Commercial Property, Gavin Boswarva added.

“We’re pleased to be able to progress construction of the second phase of this project – a modern, functional office and warehouse estate.

“The fundamentals of the logistics market remain sound and over time as conditions normalise, we expect Brisbane’s demand for new warehousing and manufacturing space to continue to grow.

“Stage 2…will be a flexible, high volume warehouse facility with the potential to be occupied by a single tenant or subdivided into smaller separate tenancies, comprising spaces from 4,500 sqm up to 25,400 sqm.

“The base building design provides for flexible inter-tenancy walls, B-double access, separate heavy vehicle and light vehicle access, and minimum 10-metre high warehouse clearances,” Mr Boswarva added.

“The base building design provides for flexible inter-tenancy walls, B-double access, separate heavy vehicle and light vehicle access and minimum 10.5 metre high warehouse clearances”.

It will also include solar powered hot water services and PV (photo-voltaic) panels, rain and water harvesting, LED lighting with efficiency control and pedestrian and cyclist end of trip facilities.

All up Willawong Distribution Centre is expected to have 10 warehouses ranging in size from 5700-40,000 sqm.

Stockland’s logistics portfolio knocks at $5 billion

Stockland holds a national logistics portfolio with 29 assets worth a total of $2.8 billion.

It also has a $2.1 billion development pipeline – including Willawong Distribution Centre, and properties further south at Yatala (Gold Coast’s largest industrial zoned land precinct) and Ingleburn, in Sydney.

Last November, it announced plans to co-develop what will be the largest industrial park in Melbourne’s west

To be branded Melbourne Business Park, this 260 hectare Truganina block is earmarked for product worth a total of $2 billion.

Elsewhere in the same suburb, in January, the landlord secured two major retailers, JB Hi Fi and Brandlink, to its $44 billion KeyWest Distribution Centre, which it is also building speculatively.

Stockland turns 70 in two years.

Stockland’s master plan for the $188 million Willawong Distribution Centre.
Artist’s impression of part of the completed Willawong Distribution Centre (above), and Stockland’s first building (below)
The site (foreground) is about 19 kilometres south of Brisbane’s CBD.

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Marc Pallisco

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