Frasers Property Industrial is to add more than 27,000sq m to its giant North Melbourne industrial estate after securing a new 10-year lease with a longstanding customer.
Under the deal, flooring supplier GMK Logistics will get a 26,407sq-m warehouse and a 1000sq-m, two-storey office within Frasers’ 63.4ha 4Ten Epping estate.
GMK, which is a subsidiary of publicly traded CTI Logistics, has been serving the flooring industry across Australia for about 60 years.
It joins Mazda Australia, Kitchen Warehouse, Crusader Caravans and Intelligent Engineering as clients of the Epping facility, about 20km north Melbourne. Frasers say they expect to complete GMK’s distribution centre early next year, which makes the estate about 43 per cent complete, with 65,000sq m fully leased.
Singapore-listed Frasers has leased facilities to CTI Logistics before. A new purpose-built 25,580sq-m facility is also under construction for CTI at the 400,000sq-m Yatala Central Premium Estate in Queensland, which is due to be completed later this year.
CTI’s commercial general manager, Glenn Brown, said the latest deal built on a long-standing relationship with Frasers Property Industrial across Australia.
Frasers has again contracted CIP Constructions to complete the GMK distribution centre, which will include dual hardstands—one 36m wide— plus 16 recessed loading docks and nine roller shutter doors.
Frasers picked up the industrial site at 410 Cooper Street in 2018, paying $44 million, according to online records. Scheduled to be completed by 2027, the estate will have an end value of about $305 million.
Strong demand for industrial and logistics space, particularly in Melbourne, has been driven by what industry leaders say is a chronic undersupply of zoned industrial land across the greater city area.
Research by town planners Urbis in February this year warned there was only four years’ supply of industrial-zoned land remaining in metropolitan Melbourne.
