Amazon has announced plans for a new 37,000sq m fulfilment centre, committing to a Dexus-managed industrial estate in the western suburbs of Melbourne.
Amazon’s latest fulfilment centre, located in Ravenhall, will join its 24,000sq m facility in Dandenong South owned by Melbourne’s Pellicano family—which marked the retailer’s foray into Australia in 2017.
The new facility, which will double Amazon’s operating footprint in Victoria, will have the capacity to house up to six million items from Amazon’s online platform which currently offers upwards of 125 million products across 31 different categories.
Amazon worked closely with Dexus to secure the strategic location at the Horizon 3023 estate, after it was drawn to the 127-hectare precinct due to its public transport connections and high-quality amenity.
The lease for the centre was facilitated by CBRE’s Industrial and Logistics business.
“We have invested significantly in our Victorian operations this year to ensure we can continue to improve delivery promises to customers in the state,” Amazon Australia director of operations Craig Fuller said.
The new under-construction facility, which is owned by Dexus along with the wholesale property fund it manages and Dexus’ partner, GIC, in a logistics trust, will support more than 200 construction jobs during the development and fit-out phase.
Dexus chief investment officer Ross Du Vernet said the company was pleased to support Amazon’s growth in Australia, with tenancy at Horizon 3023 being absorbed rapidly due to the precinct’s world-class logistics and warehousing solutions.
Commitments at the new Dexus precinct have topped 100,000sq m with distributor Scalzo Foods and meal-kit company Hello Fresh among major tenants to sign on.
Dexus’ logistics precinct will ultimately be home to 400,000sq m of commercial and industrial property, worth around $500 million, set to be constructed during the next seven years.
Amazon Australia has two other manual fulfilment centres: one at Goodman’s Centenary Distribution Centre at Moorebank in Sydney, which is 45,000sq m, and at Perth’s Airport Precinct.
It also plans to open a fourth facility in a Goodman estate at Lytton in Brisbane’s east. The 25,000sq m centre, to be located at Goodman’s Port Industry Park is set to be completed before the end of the year.
Earlier this year, Amazon confirmed plans for a $500 million roboticised facility in Sydney’s west.
Amazon has also invested in the expansion of its logistics network in Victoria this year, with the opening of two Melbourne Delivery Stations in Mulgrave and Melbourne Airport’s business park which will enable faster delivery to customers around Melbourne.
The world’s largest online retailer has reported record profit for two consecutive quarters, boosted by the pandemic’s stay-at-home measures seeing consumers turn increasingly to Amazon for delivery.
The company said it expects net sales of $US112 billion to $US121 billion for the fourth quarter and is pushing to recruit more than 400,000 more workers across its international operations.