CEVA Logistics for Australand West Park Industrial
Australand has secured CEVA Logistics at its West Park Industrial Estate, recently commencing construction of a new 90,000 sqm campus-style warehouse and office facility for the world leading supply chain company.
The Ceva Logistics deal – one of the largest in Australia in years – takes the total industrial space transacted by Australand in Melbourne over the last six months to around 200,000 sqm, equating to approximately $200 million in value.
The new facility will be the centrepiece of CEVA’s growth plans in Australia and New Zealand once completed in mid 2016. It will have an end value of over $80 million and CEVA has committed to an initial 10 year lease over the site.
Anthony Maugeri, Australand General Manager – Southern Region, said the CEVA deal caps a period of intense industrial activity in Australand’s Melbourne estates.
“We have secured a number of significant deals with some of Australia’s largest industrial occupiers in Melbourne recently, at a time when there’s a relative shortage of good quality industrial space readily available,” Mr Maugeri said.
“It is encouraging to see demand remain resilient given the current economic environment and the shortage of quality industrial facilities available at short notice, particularly in west Melbourne, has supported strong activity in our estates.
“The strategic location of West Park, our capacity to deliver and our longstanding strong relationship with CEVA were the core ingredients in converting this project.”
As the largest CEVA facility in Australia, the new office and warehouse will enable CEVA customers to benefit from excellent access to Melbourne’s road and rail network, the Port of Melbourne and Melbourne International Airport.
CEVA’s commitment represents the culmination of an active few months for Australand and the West Park estate, where Australand has just converted a 14,330 sqm speculative facility for long term customer Schenker in a deal valued at $14.3 million.
“We will continue to employ our speculative strategy where it makes sense to do so, as we have the unique benefit of an industrial land bank focused in Melbourne’s key industrial sub-markets,” Mr Maugeri said.
“However we have noticed the pre-lease market beginning to unlock again, which is positive news. There are signs that leasing activity is picking up and occupiers are willing and able to forecast their accommodation needs out a bit further.
“Evidence of this is securing major pre-leases to Miele, Austrans and MaxiPARTS in recent times.”
The 15,000 sqm Miele pre-lease at The Key was secured in a deal valued at $17 million, based on the facility’s estimated end value. At West Park, the Austrans pre- lease was for 14,570 sqm ($14.6 million) and the MaxiPARTS facility covers 12,505 sqm ($12 million).
Other recent deals include the Ive Group Australia’s commitment to a 6,789 sqm facility developed speculatively at The Key.
Australand has also recently completed the development of its Access Altona estate in Melbourne, having executed deals with Godfreys for 12,333 sqm and Cosmic for 9,077 sqm. The facilities for Godfreys and Cosmic, valued at $12.4 million and $8.5 million respectively, were further examples of AustrALAND’s speculative development strategy paying dividends.
Sean McMahon, Australand's Executive General Manager - Commercial & Industrial, said the Melbourne industrial market remains the most affordable market in Australia, 20-30% cheaper than the other capital cities.
“The relative affordability of quality industrial space in Melbourne continues to attract a broad array of international logistics and domestic industrial occupiers alike,” Mr McMahon said.
“Incentives do remain elevated, as is the case with most markets, however they should stabilise over time as economic and demand conditions gradually improve.
“We have a strong market position in Melbourne particularly focused in the west and south east, and we are well positioned with our land banks to convert new demand as it emerges. We are currently servicing a further 40 hectares in these key markets to ensure we provide speed to market for new transactions.
“We are very focused on our market leadership position in the sustainability space and we have committed to a 6 star Green Star rating for the new campus-style facility for CEVA."