Dexus cooks up $25m warehouse deal with Simplot
Dexus is developing a $25 million state-of-the-art logistics centre for food producer Simplot Australia, the latest in a series of major leasing deals at its industrial estate in Melbourne’s west.
The 20,725-square-metre facility is being developed at the Dexus Industrial Estate in Truganina under a seven-year lease agreement with Simplot.
The warehouse will have another 5156 square metres of super-canopy. It is aiming for a 5-star Green Star sustainability rating with power and water efficiency.
The pre-lease commitment is part of Simplot’s broader strategy to take more control of the real estate involved in its supply chain.
Dexus head of industrial development, Chris MacKenzie, said the developer worked closely with Simplot to customise the fit-out for the large facility, with the food manufacturer looking to introduce automation technologies.
“This new facility will set a precedent for integrated supply chain and property outcomes in Australia with the customer, developer and experts working together to produce significant operational savings for the customer,” Mr MacKenzie said.
Simplot owns a number well-known food brands including Birds Eye, Leggo’s, Chiko and Edgell, John West and Lean Cuisine.
Property advisory firm TM Insight worked with Simplot to design and procure the bespoke fit-out at the facility.
“The end result will see Simplot implement various types of automation which will reduce order-to-delivery timeframes and substantially increase operational efficiencies,” said TM Insight director Milan Andjelkovic.
Construction is already underway and the facility is due for completion in March, 2018.
The Simplot transaction is the most recent in a run of of development deals at the Dexus estate.
Among them commercial vehicle maker Isuzu has signed up for almost 22,000 square metres, kitchen manufacturer Anmar Group has taken almost 16,000 square metres and clothing store Kathmandu has agreed on more than 25,000 square metres.
Led by Darren Steinberg, Australia’s largest listed office trust also has $2 billion of industrial property on its balance sheet and manages another $1.4 billion of industrial assets.
Its industrial development pipeline is almost $440 million.
The Truganina estate is in Melbourne’s west where there has been plenty of action this year.
Charter Hall is more than doubling the size of a refrigerated warehouse for Laverton Cold Storage, to create a facility of more than 12,000 square metres a total value of more than $35 million.
Singapore-backed Frasers Property Australia, will develop $70 million worth of warehouse for Ceva Logistics at its West Park Industrial Estate.
