SA distribution facility previously occupied by Big W up for lease following sale

The largest vacant industrial distribution facility in Australia is up for lease following the sale of the property.

Situated at 93 Ferries McDonald Road in Monarto South, around 60 kilometres southeast of the Adelaide CBD, the 64,459 facility on a 36.5ha site was purpose-built and occupied by Big W for 20 years until the end of 2021.

Now dubbed the ‘South Eastern Distribution Centre’, the property was sold in late 2021 by APPF (Lend Lease) following a highly competitive expression of interest campaign on a delayed settlement.

The purchaser is an active private Sydney-based developer, fond of large-scale regional opportunities.

The sale was transacted by Knight Frank in conjunction with One Commercial, with the buyer introduced by Knight Frank.

The property is now being offered for lease through Knight Frank agents David Ludlow, Marco Onorato and Darren Benson, in conjunction with David Reid, Jon Nitschike and Shaun Timbrell of CBRE.

The facility is ready to occupy, with tenants able to take it up in one line at 65,000sq m or split into smaller tenancies from 10,000sq m, with leasing rates half that of comparable properties close to the Adelaide CBD.

The facility incorporates a two-level office, cool room and vast warehouse accommodation, mostly with existing racking, significantly reducing the time and cost for an occupier to commence operations upon handover.

Mr Ludlow said the magnificent large-scale distribution centre was not only the biggest available in South Australia but offered the best value warehousing in the state.

“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 benefitting from the re-shoring of production including pharmaceuticals.

“With Big W – vacating the premises the importance of a successful introduction of a replacement occupier is of great interest to the local community, to draw in new investment and create employment opportunities.”

Mr Reid said the facility was located within the Monarto transport hub, connecting to the federally funded Auslink national highway and rail network.

“This outstanding transport connectivity has made Monarto the location of choice for major occupiers including Scotts Transport, APC, Adelaide Mushrooms, Inghams Enterprises and Viterra,” he said.

“The property is strategically located to take advantage of key transport infrastructure, with the M1 less than two kilometres from the facility, allowing efficient access to the connecting link between the cities of Adelaide and Melbourne.

“Monarto is strategically positioned on the southeastern side of Adelaide, ideally located for transport operators who service Melbourne to Adelaide to Perth transport routes using road and rail infrastructure.”

Murray Bridge Mayor Brenton Lewis said council would be very supportive of any potential business wanting to relocate or open in the area.

“We will do anything in our power to assist business, as this will directly benefit the residents of the growing Murray Bridge area in terms of jobs particularly,” he said.

“This facility is a once-in-a-lifetime opportunity for the right business to take advantage of it.

“It’s quite unique in both its size and location, being in an extremely strategic location for South Australia.

“It is close to Adelaide in real terms, just being off the South Eastern Freeway, and provides easy access to the north, south, east and west.”