Charter Hall secure 46,000sqm pre-lease with Uniqlo
Charter Hall secure 46,000sqm pre-lease with Uniqlo
13 March 2020
Charter Hall’s Prime Industrial Fund (CPIF) has secured a
46,000sqm pre-lease to Uniqlo Australia on a 10-year term commencing in early
2021, within the 60 hectares Midwest Logistics Hub in Truganina, Melbourne.
Mr Andrew Simons, Charter Hall’s Head of Development, Industrial &
Logistics, said “This pre-lease to Uniqlo further reinforces the changing
nature of retail supply chains with the commitment of Fastline Retailing (the
owner of Uniqlo), a global leader in the retail industry, to establish their
own facility to manage both their existing national store network and their
expanding ecommerce business.
“The facility will consolidate their operations into one
purpose-built facility featuring cross dock operations with a super awning,
14.6 metre warehouse clearance height and container rated hardstand.”
Mr Richard Mason, CPIF Fund Manager, said “CPIF is extremely pleased with the
early leasing success of the Midwest Logistics Hub, with over 50 per cent of
the estate now committed, reflecting that the estate is the preferred location
for national distribution centres due to its proximity to the port and
customers and the area’s large investment in road infrastructure.”
Uniqlo partnered with specialist supply chain and property firm TM Insight to
develop the business case, run the property procurement process and project
manage the construction.
Development of Midwest Logistics Hub commenced in October 2019, with the first pre-lease to Toll Group for a temperature controlled 44,000sqm facility.
The state-of-the-art facility will service their fulfilment
contract with Mars Wrigley Australia, acting as a distribution centre for
storage and dispatch to customers. The technologically advanced warehouse will
store all of Mars Wrigley’s products under one roof for the first time in the
company’s history, with the capacity to store up to 49,000 pallets or more than
700 million MARS® Bars and use Automated Guide Vehicles to move pallets around
the warehouse.
All civil and infrastructure works will be completed in June 2020 and the
construction of the Toll facility is on track to complete in September 2020. On
completion, Midwest Logistics Hub will be a prime logistics estate in a core
Melbourne location valued in excess of $500 million.
Each facility at Midwest is targeting a 4-star Green Star Design and As-Built
rating and will incorporate various sustainability initiatives including
100-300kw solar PV systems, LED warehouse lighting and rainwater harvesting.
Mr Richard Stacker, Industrial & Logistics CEO, said “Our ability to
deliver high specification, modern logistics space in strategic locations
across the Eastern Seaboard continues to attract quality tenant covenants for
our real estate funds and their investors.
“Charter Hall’s Industrial & Logistics development pipeline now exceeds $2 billion, providing the scale and flexibility to satisfy the growth aspirations of our existing and prospective tenant customers, while also delivering high quality real estate and investment outperformance to our investors”.
CPIF now comprises 65 properties, with a weighted average lease expiry of 10.7 years, 98.2 per cent occupancy and resilient tenant covenants with 95 per cent leased to government, publicly listed or nationally/globally recognised tenants.