Ford distribution centre to be built in Merrifield, Dexus acquires site
7 July 2020, Written by Matt Ogg
Ford Australia has announced today it will open a new automotive parts distribution centre at Merrifield Business Park in Melbourne in late 2021, joining a network of businesses including Dulux, D'Orsogna and Steritech.
Developers MAB and GPC have confirmed the company signed a 10-year pre-lease for a 51,480m2 facility, to be constructed by Texco.
The new logistics facility represents the biggest investment in Ford Australia's parts business in 60 years.
Kay Hart, president and CEO of Ford Australia and New Zealand, says adding Merrifield as a fifth site to Ford's existing four-site footprint in Victoria is an important step in continually improving service for customers and dealers.
"With space and great transport infrastructure links, this new site will enable us to store and distribute the parts we need for the current and future generations of vehicles, including electrified vehicles," says Hart.
"It will also give our team the space it needs to grow our business into the future."
MAB general manager commercial and industrial, Michael Martin, says Merrifield Business Park's close proximity to key rail, road and airport infrastructure, along with the ability to efficiently service the eastern seaboard, helped secure the deal.
"Merrifield Business Park is becoming a preferred location in the North for large warehousing, manufacturing, distribution and storage facilities, due to its scale and proximity to the Hume Freeway," he says.
"The facility will consolidate Ford's spare parts operations into one purpose-built facility and help them service their customers faster and more efficiently. We look forward to welcoming them in 2021."
CBRE was the advisor and broker on the deal, led by Victorian executive managing director Dean Hunt and associate director Daniel Eramo
The news coincides with the announcement Dexus Australian Logistics Trust.has exchanged contracts to acquire the facility and 37-39 Wentworth Street, Greenacre in NSW for a combined price of $173.5 million.
Dexus (ASX: DXS) holds a 51 per cent stake in the trust, giving it an $88.5 million share in the two acquisitions.
"These acquisitions build on the Dexus Australian Logistics Trust's mandate to acquire quality, well leased assets that deliver favourable total returns and increase the total group industrial exposure to over $5 billion," says Dexus CEO Darren Steinberg.
The acquisitions follow the completion or exchange of more than $1.6 billion of property acquisitions across the group during FY20.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Matt Ogg