Woolworths‚Äô online grocery investment, Marley Spoon, will expand its home delivery of weekly meal kits by committing to construct a major 14,200sqm warehouse and distribution facility in western Sydney. Once completed, the Wetherill Park Distribution Centre will have a value of more than $90 million.
On Thursday July 23, Charter Hall Prime Industrial Fund (CPIF) announced it has secured a 10 Year pre-lease with Marley Spoon. The lease involves a 14,200sqm purpose-built, temperature-controlled logistics facility in a strategic location in Sydney‚Äôs west.
Relocating and expanding from their existing premises in Strathfield, the new facility has been designed to accommodate the significant growth of Marley Spoon and Dinnerly to provide a more efficient supply chain for product to Australian customers.
In 2019 Woolworths entered into a five-year alliance with Marley Spoon and remains in a committed partnership. The supermarket giant invested $30 million through a debt and equity transaction mid-2019.
In early May Woolworths gained a ¬†$5 million profit from the consumer increase of Marley Spoon as demand for more convenient food delivery options has been growing in Australia and has been accelerated by the current pandemic as more customers shift their grocery spend to on-line.
Rolf Weber, Managing Director of Marley Spoon Australia said the meal kit group has been focused on expanding the Marley Spoon offering, as well as introducing Dinnerly, a second more affordable meal kit service.
‚ÄúSo a larger purpose-built facility will allow further automation and efficiency while also expanding our offering to customers,‚Äù he said.
Andrew Simons, Charter Hall‚Äôs Head of Development, Industrial & Logistics said Charter Hall is pleased to be partnering with Marley Spoon on this purpose-built facility, committed to support the growth in online grocery retailing and increasing Charter Hall‚Äôs substantial portfolio in the food logistics sector.
Alongside the Marley Spoon facility at 300 Victoria Street, Wetherill Park, Charter Hall has committed to construct a 12,200sqm premium grade logistics facility that will feature a 36 metre super-awning, creating a combined GLA of 26,400sqm. The adjoining logistics facility to the Marley Spoon facility will be built on a speculative basis and will be available for occupation in early 2021.
These two new facilities will comprise the second building in Charter Hall‚Äôs Wetherill Park Distribution Centre, having previously committed 11,000sqm to Total Logistics Solutions (TLS) in a standalone building.
When the new building is completed, the overall estate will have a total GLA of 37,400sqm and a completion value of more than $90 million.
Richard Stacker, Charter Hall‚Äôs Industrial & Logistics CEO said the company‚Äôs ability to deliver high specification, modern logistics space in strategic locations across the Eastern Seaboard continues to attract quality tenant covenants for its real estate funds and their investors.
‚ÄúCharter Hall‚Äôs Industrial & Logistics development pipeline now exceeds $2 billion, providing the scale and flexibility to satisfy the growth aspirations of our existing and prospective tenant customers, while also delivering high quality real estate and investment outperformance to our investors,‚Äù he said.