According to its interim results, sales in Australia and Asia rose 23 per cent over the first six months of this year. Across all regions, sales grew by 10 per cent to $US7 billion ($10 billion).
Melbourne Airport is owned by Australia Pacific Airports, a private company made up of institutional investors including the Future Fund, IFM Investors and AMP.
Stronger partnerships
“When built, the [Techtronic facility] will be the largest shed across our business park,” said Andrew Gardiner, Melbourne Airport’s chief of commercial property and retail.
“Our location will bring a lot of value to Techtronic’s distribution business, enabling easy access to their various markets.”
Techtronic partnered with industrial property and supply chain specialist TMX to design, procure and deliver the purpose-built facility. TMX will project manage delivery of the development, which is due to be completed by the third quarter of 2024 by Texco Construction.
“The nature of Techtronic’s business is that it requires an efficient, large-scale distribution network to deliver within the fast time frames expected by its Australian customer base,” said Angus Perry, development manager at TMX.
“The Australian property market is incredibly tight, and we’re delighted that we could help Techtronic secure a site of such scale in a premium location for their operations.”
Although the terms of the leasing deal were not disclosed, industrial rents average about $90 a square metre in Melbourne’s north according to a report by commercial agents Cushman & Wakefield.
This would value the Techtronic deal at more than $6.6 million a year, excluding incentives of about 20 per cent to 25 per cent.
Airport business parks are especially attractive to both tenants and investors given the proximity to major transport and infrastructure facilities.
Last month, Melbourne developer Livv partnered with fund manager and non-bank lender Payton Capital on the $93 million acquisition of a 141 hectare greenfield site next door to Avalon Airport in greater Geelong.
Livv plans to turn the site into a $1 billion mixed-use commercial, logistics and employment precinct once it is rezoned over the next couple of years.
