Frasers Property Industrial has secured American retail giant Williams-Sonoma at its Horsley Park Estate in western Sydney.
The agreement will mark the US kitchenware and home furnishings retailers foray into Australia as it looks to support its global supply chains to cater for the acceleration in online shopping and a more digitally-connected consumer.
The logistics facility at 2A Johnston Crescent, which is expected to be completed in mid-2021, will be leased on an initial seven-year term agreement brokered by JLL’s Peter Blade and Greg Pike.
The Horsley Park Estate facility will comprise a 16,755sq m warehouse and will also feature 640sq m of office accommodation and 67 car spaces.
The facility will be designed to meet a 5-Star Green Star rating and carbon neutral certification, incorporating a solar PV system using battery storage and bio-diesel back up generation.
Western Sydney industrial land values have skyrocketed amid strong demand for zoned land from developers looking to deploy funds into new projects amid a global boom in logistics driven by e-commerce growth.
Frasers Property Industrial, a division of Singapore-listed Frasers Property Limited, has developed over 300 hectares of prime industrial land in Eastern Creek, Horsley Park and Wetherill Park over the past decade.
Frasers Property Industrial general manager Ian Barter said the latest leasing deal reflected the resilience of the industrial property sector in the current economic downturn.
“Western Sydney continues to attract major national and international retail brands,” Barter said.
“The growth of organisations such as Williams Sonoma will see the region expand rapidly and underpin the creation of thousands of construction and operational jobs over the next 10 years.”
Williams-Sonoma will join commercial vehicle manufacturer Hino Motors in the 10-hectare estate, after the Toyota subsidiary committed to the western Sydney logistics park earlier this year.
Hino Motors will occupy a 9,230sq m high-tech facility at 2 Johnson Crescent comprising a 9,000sq m warehouse, 230sq m office and 83 car spaces for 10 years with the facilities completion also billed for mid-2021.
The Horsley Park Estate will neighbour the state government's recently rezoned 850-hectare Mamre Road precinct which will sit at the heart of a new employment hub with direct transport links to the new $5.3 billion Western Sydney International Airport.
Last month, Frasers and Sydney fund manager Altis Property Partners acquired a 118 hectare site within the Mamre Road precinct where it has plans to develop a logistics estate with an end value of more than $1 billion.
The Frasers-Altis industrial project is an amalgamation of a number of separate land parcels acquired from private owners, some as far back as 2017.
Frasers plans to develop more than 400,000sq m of logistics facilities on the Mamre Road estate in a joint venture with the Altis Real Estate Trust.