ARA Australia has secured new tenant Klika for its Braeside Distribution Centre, inking the largest lease of an existing facility in Melbourne’s south-east this year.
The new Klika warehousing facility at 41-51 Mills Road will comprise a gross lettable area of 17,922sqm, including 1,020sqm of refurbished office and showroom space.
CBRE’s David Aiello negotiated the long-term lease, which transacted prior to the commencement of marketing and will commence on 1 November with a rental figure in the range of $60-65 per square metre.
Mr Aiello commented; “In what has otherwise been a softer leasing market in 2019, this is a significant transaction for the south east.”
“The 17,922sqm deal is the largest lease of an existing facility this year - at a time when vacancy for buildings greater than 4,000sqm is just 1.5% in the south east.”
Mr Aiello added that the two most influential factors underpinning Melbourne’s industrial and logistics sector were strong population growth and the impact of e-commerce and supply chain – highlighted by the Klika commitment.
Rohan Neville, ARA Australia’s Head of Asset Management said “We’re pleased to have Klika on board as a new tenant – their long-term commitment to the Braeside warehouse reflects the quality and attractive location of this particular property, which is a key strategic asset within our broader portfolio.”
The Australian owned and operated online department store, Klika, is relocating from a facility in Oakleigh South, leased by CBRE, to its new corporate head office, national distribution facility and customer pick-up centre at 41-51 Mills Road.
Leo Zaitsev, Director Of Operations-Klika Group, said “We are delighted to be working with ARA Australia moving forward, and are appreciative of CBRE’s assistance yet again. With the 30% growth in sales we have been experiencing over the preceding years despite experiencing space constraints, we are now even better positioned to take advantage of the forecasted growth in the e-commerce sector with our new and larger premises.”
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.