JV partners secure 45,000 sqm precommitment

Brickworks Limited and the Macquarie Goodman Wholesale Fund have secured their first precommitment at Interlink Distribution Centre in western Sydney. The joint venture partners have signed Kimberly-Clark to a 15 year lease over a 45,000 sqm distribution facility.

Located on Mamre Road, Interlink Distribution Centre is a 50-50 joint venture between Brickworks and Macquarie Goodman that will potentially accommodate up to 200,000 sqm of new industrial facilities with an estimated end value of $265 million.

The Kimberly-Clark facility will be equally divided over two buildings with an inter-connecting hardstand area of approximately 18,000 sqm. The entire facility will occupy a site area of 8.6 hectares, which equates to over 20% of the 40 hectare property.

Kimberly-Clark has committed to a 15 year lease over the facility, commencing from practical completion, which is expected in the first quarter of 2008. The lease includes three further options of five years each.

The rental over the distribution facility was not disclosed.

It will jointly developed by Brickworks and Macquarie Goodman under a fixed price contract, with an estimated end value of approximately $62.4 million.

Managing Director of Brickworks, Lindsay Partridge, said the precommitment is the first of several that the joint venture partners are working on.

"The level of enquiry to date has been pleasing and the Trust's expectation of building out the entire site over a three to five year timeframe is on track," Mr Partridge said.

Kimberly-Clark is a long standing customer of Macquarie Goodman.

"A strong relationship and ongoing communication has delivered a good outcome for both parties, with Kimberly-Clark achieving its expanded accommodation requirement and Macquarie Goodman retaining a valued customer in the portfolio," said Macquarie Goodman CEO-Asia Pacific, David van Aanholt.

Reprinted with permission. The Australian property Review. http://www.apr.com.au