After striking a 19,612sqm lease deal, AMA Group will consolidate its two existing Victorian parts distribution centres to Charter Hall’s Somerton Logistics Estate in Victoria.
Located at 880 Cooper Street, the large-scale property formerly housed the Mazda Spare Parts Distribution Centre.
CBRE’s Daniel Eramo and Joe Brzezek brokered the lease deal, with the space being described as a “natural fit” for AMA Group.
The group has committed to a seven-year lease at a starting rental of $85/sqm.
“We are extremely excited about the increased capacity in such a fit-for-purpose facility, which will help ensure increased parts availability to fulfill the needs of our customers nationwide,” said Adam O’Sullivan, Executive General Manager – Supply at AMA Group.
For Charter Hall, it is a significant commitment that highlights the strong ongoing demand for existing warehouse space in Melbourne’s north.
“We are pleased to welcome AMA Group to our Somerton Logistics Centre, a high-profile, versatile warehouse and office facility which boasts an unmatched location and substantial capacity for growth,” said Nick Lidonnici, Regional Portfolio Manager – Industrial and Logistics at Charter Hall.
The Somerton Logistics Estate comprises nine freestanding buildings, anchored by leading brands such as Saint-Gobain, Technika and Cosentino.
The estate is strategically located close to major arterials and key infrastructure such as the Hume Highway and is just 17km north-east of Tullamarine Airport. The site also has significant solar generation capabilities.
Eramo said AMA Group’s new facility was strategically located on the corner of Cooper Street and Fillo Drive. It features multiple roller-shutter doors, high clearance warehousing, modern offices and expansive hardstand areas.
“The property’s fit-for-purpose use in a market which is experiencing extremely low vacancy rates was a key draw card for AMA Group,” Eramo said.
“The current vacancy rate in Melbourne’s north is just 1.08% vacancy and this has begun to drive rental growth as well as a stabilisation in market incentives,” he said.
Source: CBRE