Mondelez International locks in $200M bespoke Melbourne distribution facility
One of the world’s largest snacks companies, Mondelez, has committed to a new $200m bespoke distribution centre and 10-year lease at LOGOS’s 90 Palmers Road Estate in Truganina, Victoria.
The new 42,774 sqm facility will consolidate much of the business’ current warehousing and distribution operations in Victoria, uniquely bringing together food-grade processing, manufacturing, storage and automated distribution facilities at one location.
Mondelez engaged business consultancy TMX to design and procure the purpose-built facility. In a uniquely structured deal brokered by TMX, Mondelez has committed to a 10-year lease with LOGOS who is providing a full ‘turnkey’ solution, whereby they will not only develop and own the building under a traditional lease model, but also fund and deliver the bespoke fit-out and Automated Storage and Retrieval System (ASRS) as part of the lease structure.
“We understood that Mondelez needed a facility that has the inherent flexibility to grow alongside their business. We are proud to have had the opportunity to design an outcome that met their needs and now begin the construction delivery of this unique and important project. The new facility will improve Mondelez’s supply chain efficiency as well as provide significant flexibility to enable their long-term growth aspiration,” said Sam Dellios, Property Director for TMX.
LOGOS will develop the purpose-built facility over the next 20 months which will include more than 11,000sqm of high-bay space and will target a 5 Star Green Star Rating. Sustainability initiatives will include a 1MW solar system and 50,000L rainwater tank.
"We are delighted to have Mondelez sign onto a 10-year lease in this facility to boost their business and streamline their manufacturing and distribution processes. This new commitment also sees LOGOS, for the first time, deliver, own and operate the specialised fit-out, including the complex automation systems, with Mondelez as our tenant. We look forward to working with them on this exciting partnership,” said Darren Searle, LOGOS' Head of Australia and New Zealand.
The new facility will be based in Truganina, 17kms west of Melbourne’s CBD and Ports, offering unrivalled access to key road and railway lines, as well as being in close range to the distribution centres of Mondelez’ main customer base and a large workforce catchment. The new facility is expected to be fully functional by July 2024.