AMP Capital has completed the Electrolux Home Products’ facility at Casula’s Crossroads Logistics Centre, ahead of schedule.
The facility includes a circa 20,000 sqm warehouse and 3,000 sqm of office space, which will be home to approximately 180 employees.
Electrolux joins the other tenants including WesTrac, Cosentino Tiles and Versiclad in the precinct. Crossroads Logistics Centre is owned by investors in the AMP Capital Diversified Property Fund (ADPF) and once complete will accommodate approximately 80,000 sqm of warehouse and office space across three separate precincts.
“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,” AMP Capital head of industrial investment and development management Andrew Quade said.
Electrolux Home Products – Australia and New Zealand managing director Mike Putt said the move to 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,” he added.
Quade said the success of this precinct reflects the strong leasing fundamentals of the Sydney industrial market. According AMP Capital’s Real Estate Research, over 882,000 sqm of take up has occurred in the Sydney industrial market for the period to 30 June 2018, which is 15% 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% 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,” Quade said.
Australian Property Journal
