Dexus Develops Major Logistics Centre for Simplot Australia


Dexus is developing a $25 million logistics centre in Truganina for food producer Simplot Australia under a seven-year lease agreement.

The deal with Simplot adds to a series of recent major agreements at Dexus’s industrial estate in Melbourne’s west.

The new facility located at 41 Foundation Road, has been developed to drive greater efficiencies in their distribution network. The facility will be 20,725 square metres along with an additional 5,156 square metres of super-canopy.

Simplot Australia owns Australian brands such as Birds Eye, Leggo’s, Chiko and Edgell, along with John West and Lean Cuisine, which distribute their products to major supermarkets and food service outlets across Australia.

The pre-lease commitment is part of Simplot’s wider strategy to take more control of the real estate involved in its supply chain.

[Related reading: Developer Secures Major Industrial Lease Pre-Commitment to Dulux]

Nathan Bingham, property director of TM Insight -- a consultancy firm that Simplot engaged for the industrial development -- noted that the estate in Truganina was not so long ago considered to be on the outer fringes of industrial development in Melbourne.

"The rapid development in the precinct coupled with the $1.8 billon of investment in road infrastructure in the immediate area has made the location absolute prime for logistics driven occupiers," Bingham said.

Dexus, who is developing the Simplot facility, worked closely with the food producer to meet their substantial property needs, including the creation of a bespoke internal fit-out.

“This new facility will set a precedent for integrated supply chain and property outcomes in Australia with the customer, developer and experts working together to produce significant operational savings for the customer,” head of industrial developments at Dexus, Chris Mackenzie said.

The development, which began in August, is currently three-quarters finished with work expected to be complete by February 2018.

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