Private equity real estate investor Altis Property Partners will develop a new $200 million state-of-the-art national distribution centre for Snack Brands Australia in Western Sydney, in one of the biggest industrial leasing pre-commitments of the year.
The 30,255-square-metre logistics facility on Mamre Road, Erskine Park, which Snack Brands will lease for an initial 20 years once it is completed in late 2020, will include a 35-metre-high bay section across about 70 per cent of the building and leading technology including automation.
High bay warehouses – also called “black” or “dark” warehouses – are predominantly unoccupied high-density facilities more than 30 metres high that use robotics and picking technology to store and retrieve items, rather than human-operated forklifts.
“The facility represents the next generation in supply chain technology and industrial real estate that we believe will become the new standard in Australia,” Altis project director Steve O’Connor said.
Snack Brands Australia, which was acquired by Philippines food and beverage giant Universal Robina Corporation in 2016, owns well-known Australian chip brands such as Kettle, Thins, Samboy and Cheezels and produces more than 200 million packets of these snacks a year.
Snack Brands will consolidate a number of existing Sydney industrial facilities into the new high-tech Erskine Park hub, a supply chain optimisation strategy being adopted by manufacturers, distributors and retailers around the world.
Neville Tapp, supply chain director at Snack Brands, said the new facility would enable the company to enhance its customer service at the lowest possible cost.
Altis, which manages more than $2 billion of office, industrial and retail assets on behalf of its investors, secured Snack Brands for its 48-hectare First Estate after winning a tender process run by supply chain and industrial property consultancy TM Insight.
“Snack Brands are investing in their future with a world-class facility and have looked at all options to determine the best solution that meets both their current and future distribution requirements,” TM Insight director Travis Erridge said.
TM Insight developed the business case for the new Snack Brands facility and will also project manage its construction.