Industry Superannuation Property Trust has pre-committed Sydney-based retailer Winning Group – which owns popular website appliancesonline.com.au – to what will be a purpose-built warehouse and distribution centre, in Melbourne’s west.
Winning Group intends to move into the 45,000 square metre Altona North facility in 2021.
It’s initial lease term is 10 years.
The development will be ISPT’s first at the Portlink Logistics Centre – earmarked for a 26 hectare site at 39-53 Horsburgh Drive which it acquired from Toll Holdings last year for $60 million.
Toll occupies a 2164 sqm factory built in 2012 on part of the land now controlled by ISPT .
As well as the Winning Group asset, ISPT today announced it would build a 12,000 sqm warehouse within the estate on a speculative basis.
Upon completion, Portlink is expected to accommodate about 150,000 sqm of logistics and warehouse property and have an end value of $300 million.
Altona North is about 10 kilometres from the city centre.
Winning Group’s distribution centre
The Altona North building will be Winning Group’s largest Australian distribution centre – multiplying the amount of warehousing space the group occupies from 10,000.
It will replace a logistics centre rented in William Angliss Drive, Laverton North – seven kilometres further west of the Melbourne CBD.
Winning Group chief executive officer John Winning said the Portlink location “has been carefully chosen to ensure that our…customers receive the most efficient delivery”.
The additional space will allow the company, which also operates the Winning Appliances and Home Clearance brands, “to continue to expand rapidly”.
The Altona North warehouse will contain 51 loading docks – four times more than Winning Group’s outgoing warehouse.
“Furthermore, our state-of-the-art racking system, which will be 13 metres in height and our industry leading warehouse management system, will significantly improve location accuracy and the ability to service free, next-day delivery in Victoria,” Mr Winning said.
ISPT an eastern seaboard industrial heavyweight
ISPT acquired the land making way for Portlink Logistics Estate last February.
The business park forms part of a $1.3 billion development pipeline ISPT controls on the eastern seaboard.
Its portfolio includes sites in Truganina, also in Melbourne’s west, in Sydney’s Greystanes and Prestons and in Brisbane, at Wacol.
ISPT has partnered with David Southon and Daniel Wise’s Aliro Group for its logistics and warehousing leasing, development and investment management opportunities.
“Aliro is very pleased to be working with ISPT to create and manage high quality, large scale logistics and warehousing estates and to have worked closely with Winning Group to accommodate their anticipated future growth in Victoria,” Mr Southon said.
“ISPT is taking advantage of the long-term growth projected for the industrial sector to underpin stable, ongoing returns for our investors, through high quality estates developed in partnership with existing and new customers,” ISPT general manager Ben Keen added.
CBRE’s Tom Hayes introduced Winning Group to ISPT.