With the escalating prominence of e-commerce, the industrial market is experiencing a squeeze, particularly in the inner-ring suburbs adjacent to central business districts. To counteract this mounting pressure, Charter Hall is now directing its attention skyward.
It has commenced construction on its first multi-level warehouse, known as Ascent Logistics Centre (“Ascent on Bourke”) in Alexandria, Sydney.
The development will unlock nearly 27,000 square metres (sqm) of logistics space across two levels, including 5,000sqm of A-grade office and wellbeing amenity, adding an additional modern long WALE logistics facility to the $2.5 billion Charter Hall-managed CLP portfolio.
Situated in an inner Sydney ‘last-mile’ location in proximity to the densely populated CBD and eastern suburbs, Ascent on Bourke will be the one of the first advanced multi-level warehouses in Australia.
Due for completion in 2024, Ascent on Bourke is already 80 per cent pre-leased with Schindler and Coles Group as two of its pre-committed tenants. Only 4,000sqm of warehouse space and less than 1,000sqm of office space remains.
Charter Hall Industrial & Logistics CEO Richard Stacker said the development addresses existing space limitation and meets growing demand.
“As land becomes scarcer – particularly in cities like Sydney that are landlocked – and online commerce continues to grow at pace, the need for multi-level warehouse projects will accelerate. We are pleased to be leading the delivery of this solution for our tenant customers,” he said.
With direct access to the M8, the site enables businesses to transport goods from larger facilities in the western suburbs to inner Sydney and service a population of nearly five million people in under 60 minutes. Sydney’s CBD, international and domestic airport and the Port of Sydney are all within a 10-minute drive.
CLP Fund Manager Simon Greig said delivering advanced industrial facilities that create growth opportunities for its tenant customers while improving portfolio quality for its investors is central to its strategy.
“CBRE data shows rental growth for warehouse space in inner-south Sydney has surged 40 per cent over the past 18 months and is expected to climb another 30 per cent over the next three years,” he said.
“With this approach already well-established in places like Hong Kong and Singapore where land is scarce and expensive, more complex projects like multi-level warehousing are the best way to meet demand while maximising land-use in last-mile hotspots – as well as returns for our investors.”
Targeting a 5-Star Green Star Design and As-Built rating from the Green Building Council of Australia, the project will include 300kW of solar installations, rainwater harvesting, deep soil landscaping and low-VOC finishes. More than 100 new trees will also be planted across the site, which will also create green spaces for occupiers to enjoy. Ascent on Bourke will also promote green travel for workers by providing 64 bicycle parking spaces, premium end-of-trip facilities, and excellent public transport connections.