Melbourne Airport will welcome Honda and Hines will expand into Australia

  • Honda moves into a new 22,800 m² factory
  • The two former Honda facilities acquired by Hines Asia Property Partners
  • Industrial vacancy rates are at historic lows

Honda has announced that it will join Melbourne Airport Business Park with a 22,800 square meter facility.

Comprising 500 square meters of office space and sitting on a 40,910 square meter site, the new facility will be part of Honda’s national parts distribution center, replacing two nearby facilities.

Groundbreaking for the new distribution center took place in June, with Honda planning to move into the facilities during the third quarter of 2023.

“Honda is a global brand known for its automotive, motorcycle and power equipment products, and we are delighted to be able to offer them our unique location to support their local business objectives,” said Andrew, Director of Commercial Real Estate and Sales. retail from Melbourne Airport. Gardiner.

“While our core business at the airport is of course aviation, our commercial real estate business is also the foundation of our success, and this has been particularly evident throughout the pandemic.

“Melbourne Airport Business Park is Australia’s largest business park, spanning over 500 hectares. We provide tenants like Honda with fast access to air cargo, 24/7 on-site security and close arterial connections so they can get their products to their customers quickly and easily.

Honda Australia Chief Operating Officer Stephen Collins said the company was excited to move forward with the next phase of its business transformation plan.

“We are now making significant investments across the Honda business to strengthen our local operations,” he said.

“We will consolidate all of our automotive parts, motorcycle and electrical equipment warehouses and distributions into the new purpose-built facility. As ‘One Honda’ in Australia, we will have greater scale to realize our full potential and better serve our diverse range of customers. »

Hines acquires properties from Honda

Hines Asia Property Partners recently announced its expansion into the Australian industrial and logistics sector, with its second acquisition comprising two logistics properties from Honda Australia. Hines said these were the first logistics acquisitions in Melbourne.

The properties are located at 85-95 Sharps Road, Tullamarine, and 1954-1956 Sydney Road, Campbellfield.

The first will be the first major logistics development for Hines in Australia after Honda vacated ownership in early 2024.

Located next to Melbourne Airport, the new development will occupy a high-profile corner site with exposure to Sharps Road and Keilor Park Drive, which are the main arterial networks from the M80 to the airport.

Hines anticipates that this location will attract a wide range of occupiers and therefore intends to develop a next-generation logistics center at the Tullamarine site.

The Campbellfield site is a freestanding office/warehouse building located across from the former Ford factory. Hines said it was being redeveloped into a mixed-use business park aimed at providing important amenities to the neighborhood, including quick-service outlets, a daycare, hotel and fitness center. conference.

“Throughout the Asia-Pacific region, we are seeing continued demand for Hines’ next-generation facilities and we intend to invest strategically and deliver this type of product,” commented Chiang Ling Ng, CIO of Hines. Asia-Pacific at Hines.

“These new Australian acquisitions add an additional dimension to Hines’ growing industrial and logistics platform in the region and help broaden our investors’ exposure to the dynamic logistics sector throughout Asia-Pacific.

“Industrial vacancy rates are at record highs and we are seeing double-digit rental growth in most major Australian markets, which continues to drive up land values, despite inflation.” said Alysia Reilly, Hines’ Australia Head of Industry and Logistics.

“These latest acquisitions provide us with strong geographic diversification across our core East Coast markets and a good balance of secure revenue and value-added opportunities in the portfolio.”

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