Cold storage facility has huge $75m price expectation
A new cold storage facility has come to market with huge price expectations as the sector is expected to boom in the coming years.
An environmentally friendly cold-storage facility in Sydney’s North West is coming to market, expecting offers over a whopping $75 million.
The refrigeration storage unit, at 1-3 Zeleny Road in Minchinbury is expected to receive high demand as cold-storage facilities are in short supply across the country.
The facility is being sold by Colliers on behalf of Barber Property Group and Minus 1 Refrigerated Logistics. The refrigeration facility is approximately 10,181 square metres with the total site area of 20,016 square metres.
Barber Property Group managing director Paul Barber said the facility has been innovatively designed.
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“The developer’s intention was to deliver an environmentally sustainable cold store logistics facility, reducing power usage by up to 30 per cent over existing cold stores while maximising operational efficiencies,” he said.
“A surge in online sales for groceries, meal delivery services, perishable foods and the distribution of vaccines is set to see the demand for cold storage facilities grow substantially in coming years.”
The cold storage market is anticipated to grow with increasing demand for online sales of groceries, distribution of vaccines and meal delivery services.
Mr Barber said the cold storage market is expected to boom globally. Australia currently has approximately 0.38 cubic meters of cold storage warehousing space per person, which is nearly 20 per cent below the average recorded for advanced economies worldwide.
“The cold storage market is expected to grow by approximately 13 per cent per annum, reaching around $320 billion by 2025,” he said.
Barber Property Group has a mandate to develop a national portfolio of cold storage assets on behalf of Minus 1 Refrigerated Transport. This provide the potential partner with a national development pipeline with four new facilities across Melbourne, Brisbane, Adelaide and Perth to a value of approximately $300 million, according to Colliers.
1-3 Zeleny Road, Minchinbury is for sale with Colliers via an international Expressions of Interest Sales campaign with offers due Wednesday, 6th March 2024.
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