Notable first pre-lease signed in ground-breaking multi-level development

30 January 2023

The first pre-lease within one of Australia’s newest multi-level developments has been secured, as occupiers look to move into the 20,000sqm two-level facility managed by Hale Capital Partners and owned by active industrial investor LaSalle Investment Management.

The significant deal will see KFC Roofing take out 4,600sqm of industrial space on the ground floor of the ‘Portal’ development in Matraville.

Secured by the Colliers team of Michael Crombie and Trent Gallagher in conjunction with Nathan Egan and Nick Zenonos of CBRE, the deal was attractive due to the central location of the development and the high quality which will allow the occupier to gain operational efficiencies.

“South Sydney has seen limited new development across the last 10 years with circa 19 per cent growth. Hale is capitalizing heavily on the demand for infill product in partnership with LaSalle who specialises in multi-level logistics development across the Asia Pacific region. LaSalle has built a successful track record in repositioning and redeveloping assets in its key global markets including Australia,” Mr Crombie said.

“As South Sydney rents continue to climb, occupiers are focusing more on the value of the cubic capacity with the new developments yielding ceiling heights up to 12.4 metres, the modern development will provide better value for money,” Mr Gallagher added.

The development will likely be Australia’s first large scale industrial multi-level facility following in the footsteps of land constrained markets such as China, Japan and Hong Kong. This new wave of multi-level developments has allowed developers to maximise the gross floor area potential, with large-scale occupiers drawn to the facility.

“Portal’s location offers tenants a strategic advantage in the marketplace, allowing for efficient and effective movement of goods to their customer base throughout Sydney,” Mr Egan said.

“Portal is on the doorstep to Port Botany, and an easy drive to Sydney Airport. With transport costs trending upwards location has never been more crucial to warehousing operations.”

The development will feature one way traffic circulation and functional ramps providing access to level one suitable for semi-trailers.

Furthermore, the high-quality office accommodation and staff amenities, external undercover loading areas and heavy duty floor slabs create a rare premium product in the precinct. The Contractor has already commenced on site, with completion anticipated for Q4 of 2023.