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Amazon doubles their investment in VIC logistics

Categories: Industrial, Investments

Online retail giant Amazon is expanding its footprint in Victoria by launching their second Melbourne fulfilment centre next year.

Online retail giant Amazon is expanding its footprint in Victoria by launching their second Melbourne fulfilment centre next year.

The 37,000sqm fulfilment centre will more than double Amazon’s operational investment in Victoria, and cater to Melbourne’s increasing population, demand for online retail, and need for logistics operators.

“We have invested significantly in our Victorian operations this year to ensure we can continue to improve delivery promises to customers in the state,” said Craig Fuller, director of operations at Amazon Australia. “We are committed to improving selection and delivery speed as demand continues to grow.”

VIC logistics is booming

Victoria broke Australia’s eCommerce record in August 2020 with the highest amount of online sales in Australia’s history.

Online spending was up 8.9 per cent higher than 2019’s Christmas period and 5.8 per cent higher than its previous peak in April 2020. This huge spike in demand bodes well for logistics operators (and their landlords).

In August 2020, online spending in VIC was up 8.9 per cent higher than 2019’s Christmas period and 5.8 per cent higher than its previous peak in April 2020.

A VIC eCommerce boom has created an outstanding investment opportunity. JLL labelled industrial real estate the most resilient asset class in commercial real estate during the pandemic. Why? Many industrial property occupants, particularly in the logistics space, are essential services. These tenants not only survived the pandemic – they thrived.

These are the sorts of tenants that commercial real estate investors look for.

Want to invest in VIC logistics?

We’ve recently invested in Melbourne’s most prestigious industrial precinct. The industrial (logistics) asset houses three tenants: all in essential services; all who maintained full rent during COVID-19, creating income certainty and capital growth potential for our investors.

If you want to know more about similar value-add opportunities in VIC and how you can invest alongside us, get in touch today.

Why not download our FREE white paper?

Melbourne has had it tough this year. A second wave of COVID-19 seemed to stop economic progress in its tracks and cut the flow of investment dollars in the process. Well, at least that’s what a lot of investors thought.

It turns out incredible opportunities exist in Melbourne. So much so, we decided to write a white paper about it.

If you want to learn why the pandemic has made Melbourne’s property market even more appetising for investors, get your free copy by submitting the form below.



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