Propertylink inks deal with online-retailer Mills Brands
Fast growing online retailer Mills Brands has taken a six year-lease on a Propertylink-owned warehouse in Seven Hills, returning the publicly-listed landlord $1.4 million in annual rent on the investment.
Mills Brands’ expansion to Seven Hills comes as recent Australian Bureau of Statistics figures estimated online sales reached $1.3 billion in April, more than doubling the $510 million recorded at the same time last year. ABS records showed online spending accounted for 5.4 per cent of all retail transactions in April, up from 3.4 per cent for the same period in 2017.
Mills Brands will move into the 11,126sqm facility following an off-market leasing campaign managed by LJ Hooker Commercial Silverwater Director Marcel Elias, who secured the tenant at rate of $125psm.
Mills Brands had been seeking a quality warehouse base which would optimise efficiencies for business growth to complement growing e-retail demand.
The online retailer aggregates a wide-ranging portfolio of consumer goods including personal fitness equipment, commercial kitchen equipment, automotive and mobility accessories.
Mr Elias said: “The warehouse offered scale for Mills Brands’ storage requirements and access to both the M7 and M4 enhances their distribution activities.
“Online retailing is increasing its share of overall consumer spending. Subsequently, the sector has been competing aggressively for quality space. Leasing enquiry is exceptionally strong for warehouse facilities between 10,000 and 15,000sqm with proximity to arterials.
“The square metre rate achieved is representative of rising rents in the Outer West. Tenants are prepared to pay a premium during current leasing negotiations in anticipation of rising net face rents over the coming three years.”
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