Construction begins on Kumho Tyres DC at ESR’s Sherbrooke estate

Logistics real estate platform ESR Australia has commenced construction on the new Queensland distribution centre for Kumho Tyres Australia within their Sherbrooke Industrial Estate in Willawong.

The purpose-built facility for Kumho Australia will occupy over 7,200sqm of the new 10,800sqm building and is due to be completed in September this year. The Kumho tenancy will be in the final building in ESR’s Sherbrooke Industrial Estate, with other tenants in the Estate, including Suez, Davey Water and Bremick.

Kumho Tyres, one of Australia’s top five selling tyer brands, recorded 1.3 million unit sales in 2021 and sought the new facility to upscale its operations in line with domestic demand. They will continue to supply into hundreds of stores from this new warehouse facility, including major chains Tyrepower, mycar, Bob Jane, and a vast network of independent stores.

“The new facility was required as an expansion of Kumho’s business in the Queensland market in response to our ongoing increase in local sales,” said Andy Topic, General Manager Operations at Kumho Tyres Australia.

Kumho Tyres partnered with specialist supply chain and property consultancy TMX to procure their new site and review their supply chain operation.

“The search for Kumho’s new Queensland distribution centre yielded a number of options; they quickly focused on ESR’s offering at Willawong, which provided a purpose-built facility, designed specifically for tyre storage,” said Matthew Frazer-Ryan, Director of Property at TMX.

“Proximity to their existing client base and access to critical infrastructure and arterial road networks was a key driver in the site and development selection, all of which the ESR Willawong Estate delivered on,” Frazer-Ryan said.

“We’ve also seen delivery and timing risk increase across the market due to supply chain and procurement challenges for the development community,” he said.

“Strategically selecting a site with an existing development approval de-risked the front end planning timeline for Kumho and enabled construction to commence earlier than several other alternative sites.”

ESR Australia’s General Manager Development QLD, Craig Robertson, said Willawong has been a very successful development for the group, with the Estate attracting a number of high-quality tenants to their portfolio.

“We always appreciate the opportunity to partner with globally recognised brands like Kumho Tyres and provide them with high-quality warehouse facilities to conduct their business from, and this deal is a good example of exactly that,” Robertson concluded.

Following the deal with Kumho Tyres, the 6.1ha ESR Sherbrooke Industrial Estate is almost fully leased. Customers will benefit from the Estate’s connectivity to Brisbane’s major arterial road networks, leading national businesses, as well as Brisbane Rocklea Markets, the Acacia Ridge Intermodal, Archerfield Airport, and the city’s southwestern industrial precincts.

Source: ESR Australia