Project Description

When Fosters Limited through its wholly owned subsidiary Nexday required a temperature controlled wine distribution warehouse and offices facility, we formed a partnership with JAIPG Ltd and the partnership won the tender to build such a facility for Fosters to lease on a turn-key basis.

We identified a relevant corner site which was well-accessed just on the on and off ramps for the M7 motorway at Glendenning. We secured the site via an option to purchase. As the site was two hectares in size of which we required 1.3 hectares for Fosters, the surplus land was later sold and developed by others.

Council approved our site and building design with conditions requiring substantial street and road works (including a new roundabout). The approval was not without challenges as the site was across the road from a developed residential area. Having a larger than required site with two street frontages allowed those challenges to be met by appropriate design measures.

Another challenge was to secure supply and installation of appropriate temperature controlled wall and roofing panels which were then unavailable in Australia. These were shipped directly from Germany from TyssenKrupp.

The project was completed on time and on budget and handed over to Fosters turn-key as pre-leased.

Lend Lease Real Estate Investments Limited through its managed APPF Industrial Fund pre-purchased the land for $11.34 million.

The constructed warehouse facility was to be approximately 6,000sqm plus 300sqm offices and 1,220sqm awning for covered loading and unloading as well as separate vehicle manoeuvring areas.

“Management are pleased with the benefits the acquisition brings to the APPF Industrial Fund, increasing the portfolio’s weighting to the Sydney market to 77% of gross assets. On completion, the Fund will have a total value of A$237.8 million, across 17 assets,” said Mr Harrison, APPF Industrial Portfolio Manager.