Major SA distribution facility previously occupied by Big W leased to high-profile local company

A major industrial distribution facility in South Australia has been leased by a growing South Australian-based business, VALO, with an option to buy at the end of an initial lease period.

VALO, which manufactures ultra-high-performance LED lighting in Australia, will occupy the property at 93 Ferries McDonald Road in Monarto South, around 60 kilometres southeast of the Adelaide CBD.

VALO is expanding to the property, which will primarily be used for a sister-business manufacturing LED screens for the motorsport and outdoor events industries.

The tenant has relocated to the property in an expansion move.

The 64,459sq m facility, situated on a 36.5ha site, was occupied by Big W (Woolworths) for 20 years until the end of 2021, and has been vacant since then.

Now dubbed the ‘Monarto Innovation Precinct’, the property sold in late 2021 and settled in May 2022 by APPF (Lend Lease) to VIMG, a private Sydney-based value-add property investor, in a deal negotiated by Knight Frank and One Commercial.

The new net lease for the facility to VALO was negotiated by Knight Frank agents David Ludlow, Marco Onorato and Darren Benson, in conjunction with David Reid, Jon Nitschike and Shaun Timbrell of CBRE.

The Monarto South Eastern Distribution Centre is in pristine condition and incorporates a two-level office, cool room and vast warehouse accommodation with existing racking and ample loading docks, significantly reducing the time and cost for an occupier to commence operations upon handover.

VIMG National Director of Asset Management Cosmas Raco is very pleased to have leased the distribution centre to a rapidly growing entrepreneurial group and is looking forward to supporting VALO in their manufacturing business in Adelaide.

“David and the Knight Frank team had done an exceptional job negotiating a structured complex agreement that will provide both VALO and VIMG with ongoing opportunities,” he said.

Mr Ludlow said the lease for the large-scale distribution centre at Monarto South was one of the most significant leasing deals to take place in the state this year and a testament to the strength of the overall market.

“After Big W vacated, the facility was the largest available in South Australia,” he said.

“During the campaign we fielded interest from multiple tenant groups looking to lease the entire facility or to split it into smaller tenancies, but ultimately the lease to VALO proved to be the most attractive to the landlord.

“VALO’s presence will be very valuable to the local area, and they intend to employ local talent, which will be very welcome.”

Mr Reid said the leasing deal was testament to the strength of demand for industrial space in South Australia.

“With very low vacancy rates around Australia, options of this size and quality in the market are few and far between.

“We had a strong response to our leasing campaign with strong interest particularly from transport operations, manufacturing and food production from local and national occupiers.”

VALO Founder and CEO Aaron Hickman said: “This expansion further cements VALO’s presence in South Australia and our plans to bring advanced heavy industry back to the state.

“With this expansion VALO will be employing more people in regional South Australia, growing jobs in the state, and it supports our plans to export to the US, Europe and South East Asia.”