Stockland continues to capitalise on the growing demand for well-connected and positioned warehouses in the strong performing Sydney market as it delivers on its strategy to grow the national workplace and logistics portfolio to greater than 25 per cent of total assets.
Stockland has recently secured BGC (Australia) and Bitzer Australia to join its portfolio, adding to a growing list of 40 businesses now based in Stockland owned and operated logistics assets in Western Sydney.
Tony D’Addona, Stockland General Manager – Workplace and Logistics, said its workplace and logistics business continues to perform very well, delivering high occupancy, strong leasing activity and solid rental growth.
“We’re well progressed with our strategy to significantly grow this part of Stockland, thanks to our $740 million development pipeline located in major employment hubs providing long-term employment opportunities close to where people live.”
BGC Australia chose the recently finalised $50 million second stage of Ingleburn Logistics Park to relocate its operations in a 10,400 square metre warehouse facility, and Bitzer Australia has leased 5,100 square metres at the same facility for its refrigeration / cooling technology business. This follows the 29,050 square metre stage one Ingleburn facility fully leased to Next Logistics and TIFS, reflecting Stockland’s ability to attract quality tenants.
“Our vision for the Ingleburn Logistics Park is to create a new large scale, functional and flexible logistics estate to accommodate future growth of Sydney and the changing requirements of our customers,” said Tony D’Addona.
“Ingleburn ranks in the top quartile of suburbs which provides distribution to the major Amazon, Coles and ALDI Distribution Centres; as well as access from air freight at Bankstown Airport and intermodal terminals at Moorebank and Minto.
“Our customers were looking for brand new facilities that are well connected and attract a local workforce, so this was a natural fit.”
Tony Mouritz, NSW/ACT State Manager, BGC Australia, agrees: “We were looking for a well-designed, well-located facility to house our BGC Fibre Cement and Plasterboard business. The practical design of the warehouse, office and excellent logistical access at Stockland’s Ingleburn Logistics Park really stood out. Its close proximity to the M5 on/off ramps going both north and south makes it an ideal location for our customers to pick up their order and for us to deliver products both within Sydney or to any part of the state. The complex also has a professional presentation which is important for the BGC brand and a key factor in our choice to partner with Stockland.”
The demand for high quality logistics assets has been driven by a robust NSW economy and consistent, record infrastructure investment, including the new Western Sydney Airport, offering a great opportunity to develop high quality assets in connected locations.
“The Logistics market continues to be supported by ongoing investment in infrastructure and the growth in online retail. Our assets are predominantly based in the strongly performing Sydney and Melbourne markets, and we continue to pursue opportunities in these markets,” concluded Tony D’Addona.
Over the past nine months, Stockland has successfully delivered 77,850 square metres of Logistics developments with a further 44,500 square metres under construction. There is one 21,403 square metre new building available for a key customer to secure their space in the Ingleburn Logistics Park located in Sydney’s south west with immediate access to key motorways and a direct bus line servicing the Ingleburn Train Station situated directly outside.
This is one of the only existing prime grade facilities of this size currently for lease in Sydney. It’s internal clearance up to 13.7metres offers abundant pallet storage capacity and would suit third party logistics providers pitching for major distribution contracts.
The value of Stockland’s Workplace and Logistics portfolio has grown to $3.3 billion, and comprises 34 properties with a $740 million national development pipeline.