It was only a matter of time before Amazon pulled the trigger on a new warehouse.
The e-commerce giant, like many others, has benefitted from a surge in online shopping. A trend that is likely to hang around long after this pandemic is over.
Today though, we got confirmation.
The news has sent Brickworks share price 5.78% higher today. While Goodman has fallen slightly, down 0.73%.
The terms of the deal are simple but encouraging.
Brickworks and Goodman will have a 50-50 split in the venture, taking an equal share of the very generous 20-year pre-commitment lease.
Crucially, Amazon is now the second customer to commit to the site as well. Following up on the initial signing of Coles Group back in January.
For Brickworks and Goodman, it is exactly the kind of support from big-name brands that they’re after. Granted, with the site slated to be complete late next year, more deals are likely to come as well.
No doubt, having Amazon onboard will attract even more interest to the site now. As Brickworks Managing Director, Lindsay Partridge notes:
‘Brickworks is delighted to further strengthen the JV Trust by securing this significant pre-commitment. Amazon is well known around the world as a symbol of the accelerating trend to online shopping.
‘We are at the forefront of the ecommcerce revolution, with our facilities playing a pivotal role in helping our customers meet the supply chain needs of this new economy.’
No doubt, the impact will be felt across the surrounding area. Bringing a new, reinvigorated industry to the community and its people.
And for shareholders, it’s a project that promises plenty of future profit.
Encouraging signs for property demand
As for the site itself, it is set to be monstrous.
The floor area alone will be 53,500 square metres in size. Totalling a whopping 191,170 square metres after accounting for the 26-metre high, triple-mezzanine build.
Needless to say, there will be plenty of room for whatever Amazon has planned.
For property investors that should come as quite the comfort. Showcasing the strong demand for commercial sites even in the midst of a looming recession and global pandemic.
Not that that will come as a surprise to our resident property expert, Catherine Cashmore. She has been extremely vocal in her support for the market. Ruling out a property crash until 2026, based on her cyclical approach.
Indeed, up until then she believes property will boom. Both commercial and residential.
Because if she’s right, you won’t want to miss out.
For Profit Watch