Dutch online retailer, VidaXL, finalises Melbourne mega shed

by | Feb 1, 2021

Netherlands-based online retailer, VidaXL, will soon head to Australia, after striking a deal with Frasers Property Industrial to build an 81,000 square metre national distribution hub in Melbourne’s west, according to a recent Australian Financial Review (AFR) report.

Specialising primarily in outdoor furniture, as well as home and garden products, VidaXL has committed to a land and building package on an 11.4-hectare site within Frasers Property Industrial’s newly launched Canvas West estate in Tarneit, via its Australian subsidiary HB Commerce, according to the AFR report.

Due to be completed in April 2022, the new site is believed to be worth more than half the end value of the entire estate, which is valued between $110 and $140 million. The new distribution hub is set to cover an undercover area of 80,960 square metres, which will include a warehouse of 68,600 square metres, awnings of 10,960 square metres and two offices totalling 1400 square metres, according to the report.

Frasers Property Industrial General Manager, Anthony Maugeri, said, “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 e-commerce and a structural shift towards online retailing.”

An additional 350,000 square metres of new space will be required each year to accommodate the growth in e-commerce, according to CBRE industrial and logistics director Todd Grima, who brokered the deal with Jordan Grigg from Direct Property Connect.

“The VidaXL transaction reflects the growing e-commerce trend in Victoria and its new facility will be fully racked and hold over 100,000 pallets,” Mr Grima said in the AFR report.

The VidaXL purchase is just one of several industrial deals accommodating online and e-commerce-related companies last year, including Amazon committing to a new 200,000 square metre  warehouse in Sydney and logistics giant, DHL, teaming up with Fife Capital to take over a 90,000 square metre distribution centre in Melbourne’s north that was originally developed for Kaufland, according to the AFR report.

November 2020 was the biggest month in Australian online shopping history, according to Australia Post’s end-of-2020 e-commerce update, with purchases up 55.6 per cent year on year. Victoria and South Australia leading the way, as both states achieved more than 64 per cent growth, the AFR reported.