Frasers secures long-term lease with truck maker Hino
Frasers Property Industrial has expanded its tenant base at the Horsley Park estate with the Japanese vehicle manufacturer Hino Motor Sales signing a long-term lease.
Located in Sydney’s west, the company will occupy a 9230 square metre high-tech facility at 2 Johnson Crescent comprising a 9000 sq m warehouse, 230 sq m office and 83 car spaces for 10 years. Completion of the site is anticipated in March 2021.
The deal reflects the resilience of the industrial property sector in the current economic hibernation. While other sectors of the market are closed, such as bricks and mortar retail, consumers are now using online shopping for goods, which is keeping warehouses busy.
Ian Barter, general manager Northern Region for Frasers Property Industrial, said western Sydney continued to attract a high calibre of local and international 3PL providers.
“Several key infrastructure projects are either under way or about to start in the area to improve connectivity, including the proposed Southern Link Road, which will front The Horsley Park Estate and links directly to the M7 motorway,” Mr Barter said.
“The area will also significantly benefit from the state and federal Government’s Western Sydney Infrastructure Plan, encompassing Western Sydney International Airport.”
Hino is relocating its spare parts distribution and training facility from Taren Point but will leave the head office in its current location. The new warehouse will store a range of products, including minor bolts to complete truck cab assemblies.
Nick Greenwell, national director at Colliers International – who brokered the deal on behalf of Hino Motor Sales Australia Pty Ltd – said centralising the parts distribution business at Horsley Park optimises Hino’s supply chain network.
The Horsley Park Estate is located within the established industrial areas of Horsley Park and Eastern Creek as well as Western Sydney’s Employment Area (WSEA).
In another deal, Colliers International’s Trent Gallagher and Edward McFarland are selling Unit 31, 398 The Boulevard, Kirrawee – a 575-square-metre industrial unit on behalf of VEGA Australia Pty Ltd.
“The amount of interest from buyers in the Sutherland Shire and South Sydney precinct is at historical levels and we are seeing inquires to relocate from the inner south ring within this market have risen dramatically,” Mr Gallagher said.
“This has seen increased competition in all on- and off-market opportunities currently being offered, together with an increase in property values over the course of the last three years in the Sutherland Shire.”
Mr McFarland said there was increasing interest from owner occupiers, corporate offices and international users looking for quality industrial assets.
“With interest rates so low at present, most occupiers want to buy as opposed to renting, which is driving purchase prices for industrial property up,” he said.
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