Netherlands online retailer VidaXL has committed to a land and build package of 113,620 sqm site in Tarneit, after signing a deal with Frasers Property Industrial.
The eTailer, which sells outdoor toys, furniture and home and garden products, will occupy the space which comprises of a total undercover area of 80,960 sqm and includes a warehouse of 68,600 sqm, awnings of 10,960 sqm, and two offices totalling 1,400 sqm.
Frasers Property Industrial GM southern region Anthony Maugeri said that the site will help VidaXL accelerate its eCommerce operations in Australia.
"This transaction is the first in our new Canvas West Industrial Estate, in Tarneit.
"It demonstrates Frasers Property Industrial’s adaptability as a business and flexibility in product mix to pivot from core pre-lease development activities to meet changing market conditions.
"The entire transaction was undertaken online due to the current COVID-19 restrictions across two countries (Australia and the Netherlands) over the last six months.
"The new national distribution centre is designed to help VidaXL accommodate its rapid online business growth and customer demand which is in-line with the rise of eCommerce and a structural shift towards online retailing," he said.
The increased demand for eCommerce retailing is expected to sustain in Australia following the COVID-19 pandemic, with Australia Post delivering more than 52 million parcels in December – an almost 20% increase on the previous year.
"CBRE forecasts an additional 350,000 sqm of additional new space will be required each year to accommodate growth in eCommerce," CBRE director of advisory and transaction services industrial and logistics, Todd Grima, commented.
"The VidaXL transaction reflects the growing eCommerce trend in Victoria and its new facility will be fully racked and hold over 100,000 pallets," he said.
VidaXL launched in Australia in 2014 and is currently growing at over 100% per annum.
Completion of VidaXL’s facility is anticipated in April 2022.