Williams-Sonoma heads west for new Sydney warehouse
William-Sonoma has joined the procession of big multinational companies occupying new hi-tech warehouses, with its commitment to a large facility in Sydney’s west.
Amid a global push to streamline supply chains as online demand grows, the US kitchenware and home furnishings retailer will lease a 16,755 square metre warehouse, with 640 sq m of office accommodation and 67 car spaces within Frasers Property Industrial’s The Horsley Park Estate.
The logistics facility at 2A Johnston Crescent is expected to be completed in mid-2021.
Williams-Sonoma will lease the facility on an initial seven-year term. Frasers declined to provide any further details about the agreement or the value of the warehouse.
Based on average net rents of $120 -$125 per square metre in Western Sydney and a cap rate of 4.75 per cent, the facility could have an end value in excess of $40 million.
Rent incentives average around 15 per cent in Western Sydney.
“Western Sydney continues to attract major national and international retail brands,” said Ian Barter, a general manager at Frasers Property Industrial.
“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 a 9230-square-metre high-tech facility earlier this year that will open in March 2021.
Building materials group CSR and a national bottling company currently reside in the estate. Only 9730 square metres of speculatively developed warehouse space remains available for lease from April next year.
The Williams-Sonoma warehouse will be designed to achieve a 5 Star Green Star rating from the Green Building Council of Australia.
Peter Blade and Greg Pike from JLL in Western Sydney brokered the deal.
A week ago, Frasers and Sydney fund manager Altis Property Partners teamed up to acquire a 118 hectare site in western Sydney with plans to develop a logistics estate with an end value of more than $1 billion.
The site at Kemps Creek, south-east of Penrith, lies within the rezoned Mamre Road Precinct which is set to become an 850 hectare warehousing industrial hub as part of the Western Sydney Employment Area.
Frasers Property Industrial plans to develop more than 400,000 square metre of logistics facilities on the Mamre Road estate.
