Developers are seeking to capitalise on the growing industrial facilities shortage, delivering some of the most significant warehousing construction projects and driving the creation of large new estates.
Developers are seeking to capitalise on the growing industrial facilities shortage, delivering some of the most significant warehousing construction projects and driving the creation of large new estates at Hope Valley/Wattelup, Jandakot Airport and Cockburn Sound.
Nowhere is the industrial boom more apparent than at Perth Airport, which has grown during the past year as a warehousing, distribution and commercial hub through the commitment of supermarkets Woolworths and Coles to distribution centres, and recent construction activity for BGC’s $75 million brickworks.
About 40 non-aviation tenants are already on the estate, including logistics and freight firms Toll Group, DHL and Star Track Express.
Even though it was approved almost 12 months ago, Coles Group’s regional distribution centre of almost 73,000 square metres remains Perth’s biggest design and construct industrial project.
Charter Hall is developing the $100 million project on a 25-hectare site at the KewLink East estate, opposite Perth Mint’s distribution facility AGR Matthey.
Meanwhile, Toll Group is planning three new warehouses following its acquisition of Patrick Corporation last year, while testing outfit SGS Australia plans a 6,500sq m office and laboratory facility.
Jones Lang LaSalle director indus-trial Richard Parry said companies such as Toll Group, TNT and Laminex were growing by acquiring smaller busi-n-esses, and needed more room.
“Demand is extremely strong for design and construct projects and there’s more building activity than there ever has been,” he said. “Unfortunately we’re dealing with the death of the large lot as most are being cut up, and this leaves many large businesses with no option but to move to the airport or to estates further out.”
Mr Parry said larger investors such as Macquarie Goodman, Australand and Charter Hall were buying large industrial assets across Perth, leaving the smaller private investors and owner-occupiers to acquire the rest.
“There is a weight of money behind these institutional investors and currently Western Australia is the flavour of the month, despite firming yields,” he said.
Institutional investors may be taking the headlines, but it is the smaller private investors that are dominating transaction activity.
Among the most active, Michael Hodgson is understood to be building Laminex Group’s new 25,000sq m warehouse on Orrong Road in Welsh-pool, having just completed a 25,000sq m distribution centre for Bunnings on Berkshire Road Forrestfield.
