Woolworths has pre-committed to a new $70 million, 53,000-sqm facility at the Interlink Distribution Centre.
The Interlink Distribution Centre located at Erskine Park is jointly owned by Brickworks and Macquarie Goodman Wholesale Fund.
The Woolworths facility, which will sit adjacent to the recently announced 45,000 sqm Kimberly-Clark facility, will be developed over a site area of 11.4 hectares and provide Woolworths with a new liquor distribution centre.
The facility will be jointly developed by Brickworks and Macquarie Goodman Group under a fixed price contract with the Brickworks-MGW joint venture property trust. It will have an estimated end value of approximately $70.4 million.
Woolworths will lease the new facility for a 15-year term from the date of practical completion, which is anticipated to be the first quarter of 2008. The transaction is the first pre-commitment by Woolworths since its recent portfolio sale and has been struck at a rental rate that is believed to be very efficient.
Brickworks’ managing director Lindsay Partridge said having achieved a development commitment of over 50% of the entire 40 hectare site within the first six months of ownership is a fantastic result.
“In addition, we are pleased with the long term investment prospects for the Trust once the 7% initial yield after all costs is considered in the context of the cost of acquiring such properties on the open market,” he added.
Macquarie Goodman’s chief executive of Asia Pacific David van Aanholt said the Woolworths pre-commitment reinforces the Erskine Park industrial precinct as a sought after destination for major logistics and distribution users.
Australian Property Journal
