Logistics Operators move on Eastern Creek holdings23 February 2020
Eastern Creek continues to attract demand from warehouse an logistic groups with 2 deals reported this week.
Frasers have sold a 2.4ha site at 13 Wonderland Ave for $17m to storage and distribution group FCN. The property sits at the junction of Wonderland Drive and Interchange Drive. The site is zoned General Industrial and whilst currently vacant could accommodate a 10,000sqm warehouse & distribution centre subject to approval. The purchase price equates to $700/sqm of site area.
In a separate deal, Kuehne + Nagel have transferred their warehouse facility in Eastern Creek to a related party for $46.5m.
The purpose built facility provides 20,000sqm of warehousing space, 500sqm of mezzanine office space, eight loading docks and levellers and parking for 151 vehicles. The warehouse was built for Kuehne + Nagel Group in 2014 at a cost of around $11m. The facility achieved a 4 Star Green Star As-Built rating.
The Kuehne + Nagel Group are one of the world's leading logistics companies, employing over 63,000 people at more than 1000 locations in over 100 countries. The group has a strong market position in the seafreight, airfreight, contract logistics and overland businesses, with a focus on providing IT-based integrated logistics solutions.
Whilst the transfer of the site was to a related party (presumably for tax reasons) it was priced on a value of $1,291/sqm of site area or $2,325/sqm of building area.
The value is commensurate with recent trades in the Eastern Creek area including Fife Capital's acquisition of 50 Eastern Creek Drive for $1,178/sqm in October 2019 and SwissRE's acquisition of 1 Eucalyptus Drive for $1,656/sqm.