Online retailer VidaXL has committed to a significant land and build package in Frasers Property Industrial’s newest industrial estate, representing one of Melbourne’s largest industrial transactions in 2020.
The transaction of the VidaXL site, that has a land area of 113,620 sqm, is one of the largest in Melbourne’s western industrial market since CEVA’s supersite deal of 90,253 sqm at West Park Industrial Estate in 2015, also with Frasers Property Industrial.
The VidaXL site at Frasers Property Industrial’s newest industrial estate – Canvas West in Tarneit, will accommodate a total undercover area of 80,960 sqm comprising a warehouse of 68,600 sqm, awnings of 10,960 sqm, plus two offices totalling 1,400 sqm.
Anthony Maugeri, General Manager Southern Region for Frasers Property Industrial said the transaction demonstrates Frasers Property Industrial’s adaptability as a business and flexibility in product mix to pivot from core pre-lease development activities to meet changing market conditions.
“The entire transaction was undertaken online due to the current COVID-19 restrictions across two countries (Australia and the Netherlands) over the last six months,” he said.
“The new national distribution centre is designed to help VidaXL accommodate its rapid online business growth and customer demand which is in-line with the rise of eCommerce and a structural shift towards online retailing.”
Todd Grima, Director, Advisory & Transaction Services Industrial & Logistics at CBRE said the company forecasts an additional 350,000 sqm of additional new space will be required each year to accommodate growth in eCommerce.
“The VidaXL transaction reflects the growing eCommerce trend in Victoria and its new facility will be fully racked and hold over 100,000 pallets,” he said.
Recent figures from Australia Post’s 2020 eCommerce update highlighted that August 2020 was the biggest month in Australian online shopping history and the top five online shopping locations nationally were all in Victoria.
The state-of-the-art facility will have exposure with its frontage onto Boundary Road and has been designed to accommodate future flexibility for separate tenancies with two main offices, multiple entry/exit points and three 36-metre wide drive through awnings with full drive around access.
Additional building features include a springing height of 11.5 metres (rising to 15.2 metres at the ridge) to accommodate seven high racking and VNA area in 40 per cent of the warehouse, seven-tonne post loading, 17 roller shutter doors and 16 recessed loading docks.
This announcement coincides with the launch of Frasers Property Industrial’s newest estate in the west – Canvas West, located at 917 Boundary Road, Tarneit.
Canvas West, spanning 43-hectares will accommodate up to a further 80,000 sqm of additional built form, with an estimated end value in excess of $110 – $140million. Development time frame is expected to be between two to three years.
Completion of VidaXL’s facility is anticipated in April 2022.
Todd Grima, CBRE (agent) and Jordan Grigg, Direct Property Connect (consultant) brokered the deal.