Truganina featured
Many more facilities like this will be needed. Image Supplied
  • Costway has signed a five-year lease for the Truganina warehouse facility
  • Was originally built for Toll to house Mars distribution
  • Warning that e-commerce warehouse space need to increase by 35% to meet demand

The rapid growth of e-commerce has fuelled demand for sites to facilitate warehousing, with Costway announcing its first Australian distribution centre.

Costway Wholesale, which sells 50,000 speciality products globally, has signed a five-year lease for 28-30 Distribution Drive in Truganina. The facility is currently owned by Lendlease.

Originally, the 18,751sqm facility was purpose-built for Toll to house its contract for confectionery manufacturer Mars.

The site is located close to western Melbourne’s road infrastructure network and features significant racking capacity with multiple recessed loading docks – needed to facilitate the high-volume product movement.

Harry Kalaitzis, Todd Grima, Tom Hayes and Daniel Eramo of CBRE secured the tenancy on behalf of Lendlease.

“This facility aligns perfectly with Costway’s global corporate image and provides many logistical advantages for its operations,” Mr Kalaitzis said.

“Truganina represents an ideal location for e-commerce occupiers due to its proximity to key infrastructures such as Port Melbourne, the CBD and Melbourne Airport.

Harry Kalaitzis, CBRE

“It also provides exceptional access to Melbourne’s major road networks including the West Gate Freeway, Western Ring Road and Princes Freeway.”

Lendlease also recently secured three Mirvac warehouses in a transaction totalling $161 million.

Back in June, a CBRE report revealed that an additional 500,000sqm of industrial and logistics space annually would be required to accommodate online retail.

Melbourne, in particular, saw online sales rise by 82% in 2020, fuelled by their extended lockdown a year ago.

“An average of 1,400,000sqm of space has been delivered to the Australian market each year since 2010. Based on that, to cater for the growth in e-commerce, new supply will need to be elevated by approximately 35%,” said Sass J-Baleh, CBRE.

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