Rubber hits the road as Kumho takes $37.5m facility in Marsden Park
Kumho Tyres is expanding its Australian distribution network, doubling the size of its Sydney presence and signing new leases in Brisbane and Adelaide.
The South Korean company has committed to a 10-year lease on a $37.5 million custom-built facility at Sydney Business Park, in Marsden Park, on the city’s north-west fringe.
Covering 11,366 square metres, the new distribution and storage centre is more than twice the size of Kumho’s existing 5500sq m building in Glendenning.
Andy Topic, head of operations for Kumho Tyres, said demand was increasing and that it was outgrowing the Glendenning site.
“We’ve been experiencing significant growth in NSW and needed to expand our warehousing,” Mr Topic said.
The lease was negotiated for Kumho by TMX, which also helped secure the site and will oversee construction, due to complete in the fourth quarter.
Matt Foldes, sales and leasing director at Sydney Business Park, said demand for space had accelerated through the pandemic.
“In the past couple of years inquiry for all levels of industrial and distribution centres has just been an absolute frenzy,” he said.
“It’s very busy, there’s limited land available generally in western Sydney, particularly well-serviced, in a good location, and available.
“There’s a lot of future supply, but often there’s constraints with zoning or servicing or fragmented ownership.”
Mr Foldes said rents had been increasing and incentives were down, with demand exceeding supply across western Sydney, where rental inflation in certain precincts was forecast to hit 25 per cent this year.
Sydney Business Park is a 256-hectare master-planned site owned by the Wearn and Singh families that opened in 2014.
Occupants include Ikea, which has a 70,000-square-metre distribution hub close to the M7 motorway, Asics Oceania, Australian Pharmaceutical Industries and TJX Australia.
Around 50 per cent of the Sydney Business Park has been developed, and the owners are evaluating the best options for the future.