COLGATE PALMOLIVE EXIT CREATES HUGE POTENTIAL
Written on the 24 March 2016 by Nick Nichols
COLGATE Palmolive is cutting its long-term ties with the Gold Coast after placing its Arundel manufacturing site on the market.
While the number of jobs the move will cost has not been disclosed, Colgate Palmolive is understood to be planning to close the facility it has owned since 1988 by the end of this year or early next year.
The company set up the facility in what was once the city outskirts for the local production of oral care and laundry detergent products.
Business News Australia has sought further comment from Colgate Palmolive on its planned closure.
Meanwhile, the sale of the 22.16ha site is expected to capitalise on growing demand for industrial land on the Gold Coast. The massive infill redevelopment site holds huge potential for a major industrial subdivision, pending council approvals.
The Arundel site comprises two main buildings of 6823sm and 5823sqm, although Colgate Palmolive is only actively using one of these buildings.
The global consumer products manufacturer decommissioned its oral care products division some time ago, but still operates its laundry detergent business at the site.
The property fronts Captain Cook Drive, but according to marketing agent Kyle Youngson, of Colliers International, a second access point could be secured along Kendor Street, again pending council approval.
Colgate Palmolive has secured approval to subdivide the site into two lots, but Youngson says there is further potential to carve up the site into smaller lots.
He says the scale of the site could bring on stream the bulk of new industrial land supply to the Gold Coast market outside of Yatala for the next few years.
Youngson, who has just sold 29 Queensland Government-owned lots in the nearby Arundel Industrial Park, says this project has the potential to be 'the next big offering for industrial purchasers'.
"We expect a lot of interest in this property from both large manufacturers and industrial developers looking to take advantage of the size and location of the site," he says.
"Industrial land demand on the Gold Coast continues to outstrip supply with industrial land prices increasing over the last 12 months.
"The demand for industrial land on the Gold Coast does not look like slowing in the short to medium term, with prices for vacant industrial land shifting from $300/sqm to $400/sqm plus in recent months."
The property is zoned medium impact industry under the Gold Coast city plan.
Youngson is marketing the property through an expressions-of-interest campaign that closes on May 6.
Author: Nick Nichols