CONSTRUCTION is now underway on Charter Hall’s first multi-level warehouse, Ascent Logistics Centre in Alexandria.
The nearly 27,000sqm of new logistics space across two levels will include 5,000sqm of A-grade office and wellbeing amenity and will be one of the country’s first advanced multi-level warehouses.
Ascent Logistics Centre or “Ascent on Bourke” is 80% pre-leased, including to Schindler and Coles Group, leaving just 4,000sqm of warehouse space and less than 1,000sqm of office space available.
“As our warehousing demands continue to grow and become more complex, forward-looking solutions such as this development in Alexandria will help us create a better experience for our customers as well as for our people,” said Paolo Beltrame, managing director of Schindler, Australia.
“The Ascent on Bourke development is a key strategic site helping Coles, in partnership with Ocado, meet the growing demands of the Sydney metropolitan region. This site will complement our existing network and support the delivery of Coles’ anytime, anywhere, anyhow strategy by offering customers access to market-leading range and service,” Kevin Gunn, executive general manager of operations and supply chain at Coles Group.
Adding a further modern long WALE logistics facility to the Charter Hall-managed CLP portfolio, the warehouse is located within an inner Sydney last mile location in close proximity to the CBD and eastern suburbs.
“This development addresses existing space limitations and meets growing demand for high-quality, well-located warehouse and logistics facilities with proximity to consumers,” said Richard Stacker, CEO at Charter Hall Industrial & Logistics.
“As land becomes scarcer – particularly in cities like Sydney that are landlocked – and online commerce continues to grow at pace, the need for multi-level warehouse projects will accelerate. We are pleased to be leading the delivery of this solution for our tenant customers.”
The location also provides direct access to the M8, enabling businesses to transport goods from larger facilities in the western suburbs to inner Sydney and service a population of nearly 5 million people in less than an hour.
Additionally, the location is placed within a 10-minute drive of Sydney’s international and domestic airport and the Port of Sydney, as well as boasting nd excellent public transport connections.
“Delivering advanced industrial facilities that create growth opportunities for our tenant customers while improving portfolio quality for our investors is central to our strategy,” said Simon Grieg, fund manager at CLP.
“CBRE data shows rental growth for warehouse space in inner-south Sydney has surged 40% over the past 18 months and is expected to climb another 30% over the next three years.”
“With this approach already well-established in places like Hong Kong and Singapore where land is scarce and expensive, more complex projects like multi-level warehousing are the best way to meet demand while maximising land-use in last-mile hotspots – as well as returns for our investors.”
Ascent on Bourke is targeting a 5-Star Green Star Design and As-Built rating from the Green Building Council of Australia, with the project set to include 300kV of solar installations, rainwater harvesting, deep soil landscaping and low-VOC finishes.
The site will also include green spaces for occupiers, with more than 100 new trees planted and 64 bicycle parking spaces and premium end-of-trip facilities.
One of Australia’s other first multi-level warehouse developments recently secured its first tenant, with KFC Roofing taking out a 4,600sqm lease on the ground floor of the “Portal” development in Matraville,
Ascent on Bourke is due for completion in 2024.
