Former Big W warehouse in Monarto sold for $21.45m
Sydney property group VIMG has paid $21.45m for the former Big W distribution centre in Monarto, and has started its search for tenants to occupy the mammoth 65,000sq m facility.
Described as the largest vacant distribution facility in the country, the building stretches across an area equivalent to four AFL football ovals.
It was purpose-built for Big W in 1999 and was sold in 2006 to the Lendlease-managed Australian Prime Property Fund Industrial (APPF Industrial) for $40m.
At its peak the facility employed more than 200 people, supplying Big W stores across South Australia, Victoria, Western Australia and the Northern Territory.
However Big W announced the closure of the facility in 2019, with the last remaining workers departing the site last year.
Founded in 2009, VIMG has developed and invested in a number of large-scale residential, apartment, commercial and industrial projects across Sydney, Melbourne, Brisbane and Perth.
It recently acquired a landholding of more than 11,000ha near Lancelin, north of Perth, as well as picking up Nestle’s former milk processing factory in Tongala, near Shepparton in regional Victoria.
The Monarto acquisition marks its entry into the South Australia market, in a deal brokered by Knight Frank in conjunction with One Commercial.
Dubbed the South Eastern Distribution Centre by its new owners, the property is currently being offered to tenants in one line or as split tenancies starting from 10,000sq m.
Knight Frank SA head of industrial logistics David Ludlow said it represented the best value warehousing in South Australia, with rents priced at half the rates of comparable properties closer to Adelaide.
“With the national industrial leasing market at almost full occupancy, options of this size and quality with immediate availability are extremely rare,” he said.
“Infill availability in Adelaide is very scarce and the rental cost has increased significantly, putting this option firmly in the minds of budget-conscious occupiers requiring high-grade under-roof storage space combined with vast outdoor storage.
“We have fielded leasing interest from a wide number of occupiers, both local and interstate, including the renewables sector, food production, transportation and logistics and manufacturing, especially those sectors benefiting from the re-shoring of production including pharmaceuticals.”
The facility, located on 36.5ha of land 60km south-east of Adelaide, includes a two-level office and cool room, and existing racking is installed across the warehouse space.
Businesses including Scott’s Transport, Adelaide Mushrooms, Ingham’s and Viterra operate from nearby facilities.
Leasing inquiries are being handled by Knight Frank’s David Ludlow, Marco Onorato and Darren Benson, in conjunction with David Reid, Jon Nitschke and Shaun Timbrell from CBRE.
This article was first published on www.theaustralian.com.au.
