Next-Gen Warehouse Rising in Sydney CBD Fringe

A multi-level warehouse complex has begun to rise in Sydney’s inner-south.

Charter Hall Group’s Ascent Logistics Centre, known as Ascent on Bourke, at Alexandria, 5km east of the CBD, will create nearly 27,000sq m of logistics space across two levels, including 5000sqm of A-grade office and well-being space.

Due for completion in 2024, Ascent on Bourke is 80 per cent pre-leased with Schindler and Coles Group as two of its pre-committed tenants. Around 4000sq m of warehouse space and less than 1000sq m of office space remains. It was approved in March.

The complex will add “an additional modern long WALE logistics facility to the $2.5-billion Charter Hall-managed CLP portfolio”, according to the company.

It said the development is “situated in an inner Sydney ‘last-mile’ location close to the densely populated CBD and eastern suburbs”, and that Ascent on Bourke would be one of the first advanced multi-level warehouses in Australia.

Charter Hall Industrial and Logistics chief executive Richard Stacker said it addressed “existing space limitations and meets growing demand for high-quality, well-located warehouse and logistics facilities with proximity to consumers”.

“As land becomes scarcer—particularly in cities like Sydney that are landlocked—and online commerce continues to grow at pace, the need for multi-level warehouse projects will accelerate,” he said.

▲ Ascent on Bourke is due for completion next year.

Targeting a 5-Star Green Star Design and As-Built rating from the Green Building Council of Australia, the project will include 300kV of solar installations, rainwater harvesting, deep soil landscaping and low-VOC finishes.

Ascent on Bourke will include 64 bicycle parking spaces, premium end-of-trip facilities and public transport connections.

Coles Group executive general manager operations and supply chain Kevin Gunn said the Ascent on Bourke development was a key strategic site helping them meet the growing demands of the Sydney metropolitan region.

“This site will complement our existing network and support the delivery of Coles’ anytime, anywhere, anyhow strategy by offering customers access to market-leading range and service,” he said.

CBRE data showed rental growth for warehouse space in inner-south Sydney had surged 40 per cent over the past 18 months and was expected to climb another 30 per cent over the next three years, CLP fund manager Simon Greig said.

“With this approach already well-established in places such as Hong Kong and Singapore where land is scarce and expensive, more complex projects like multi-level warehousing are the best way to meet demand while maximising land use in last-mile hotspots—as well as returns for our investors.”