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AMP Capital has today announced the completion ahead of schedule of Electrolux Home Products’ facility at Casula’s Crossroads Logistics Centre. The purpose-built facility, which includes circa 20,000 sqm of warehouse and 3,000 sqm of office space, will be home to approximately 180 Electrolux employees in its New South Wales distribution centre and national contact centre.
AMP Capital identified this area as a growth precinct, with customer demand for well-located, serviced industrial land a key driver in securing the opportunity for the likes of Electrolux, WesTrac, Cosentino Tiles and Versiclad which are also members of the logistics centre community.
AMP Capital Head of Industrial Investment and Development Management Andrew Quade said: “With over 380 people across the precinct and over 64,000 sqm leased to date, our team could not be prouder of the success achieved at Crossroads Logistics Centre, with only 27,500 sqm remaining to lease on Precinct B.
“By building a site to suit the purpose of our customers, we are better able to support the success and visions of these businesses, establish them in areas where we see solid growth potential and at the same time, help them build a workplace that meets the needs of their customers and workforce,” Mr Quade said.
Mike Putt, Managing Director of Electrolux Home Products - Australia and New Zealand, said the move to the company’s new purpose-built premises at Casula was both strategic and necessary.
“We are looking forward to utilising the site’s superb location in Sydney’s expanding south-western suburbs and the increased accommodation it provides our growing business,” Mr Putt said.
Mr Putt said the Casula premises would house the company’s National Contact Centre and its NSW Logistics and Sales Operations. “In addition, we have taken the opportunity to design an Experience Centre within the facility to showcase all our brands and product ranges. This will enable us to conduct retailer and consumer product training and demonstrations of our domestic appliance technologies,” he continued.
The success of this precinct reflects the strong leasing fundamentals of the Sydney industrial market. According to take up data analysed by AMP Capital’s Real Estate Research Team, for the period to 30 June 2018, over 882,000 sqm of take up has occurred in the Sydney industrial market which is 15 per cent over the long-term average of 720,000 sqm.
In the Outer South West, Prestons precinct take up has been steadily escalating with over 280,000 sqm of take up recorded in the 2017 calendar year. Based on indicators to date, 2018 is showing robust leasing activity with 120,000 sqm of deals recorded to date.
Rental growth conditions remain positive, reflecting strong absorption conditions in the Outer South West. In the second quarter of 2018, Prime Net Face rents grew by 1 per cent year on year. Low supply levels, strong demand from next generation industrial tenants in the technology and logistics sectors will be positive drivers of rental growth in this region, over the short to medium term.
Given the growing demand in Sydney’s South West, AMP Capital will now speculatively develop a 10,000 sqm facility due for completion in early 2019.
Crossroads Logistics Centre is owned by investors in the AMP Capital Diversified Property Fund (ADPF) and once complete will accommodate approximately 80,000 square metres of high quality warehouse and office space across three separate precincts.
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.