APPF Industrial puts former Big W site on the market

Big W closed its distribution centre in Monarto last month, and now investors are being offered the chance to buy the massive warehouse property.

The former Big W distribution centre in Monarto is for sale. Supplied by Knight Frank

The former Big W distribution centre in Monarto has been listed for sale, described as the country’s largest vacant industrial property currently on the market.

The Lendlease-managed Australian Prime Property Fund Industrial (APPF Industrial) is likely to take a hefty loss on the sale following the decision by Woolworths in 2019 to close the facility.

Big W has been winding down operations at the 65,000sq m distribution centre since the closure announcement in April 2019, with the last workers departing the site last month.

APPF Industrial paid $40m for the property in 2006 and was seeking offers of around $45m when it last listed the property for sale in 2015.

However selling agents suggest the property could trade at “significantly less than its replacement cost”, and industry sources expect the property to attract offers of around $20m.

Knight Frank’s Guy Bennett and David Ludlow, and One Commercial’s Joshua Charles and Simon Kent, have been appointed to sell the property.

Mr Ludlow expects to field interest from investors, and owner-occupiers involved in food processing, renewable energy, logistics and other industries.

“The property is a non-core holding for the vendor, and with the level of interest shown by owner-occupiers for quality offerings in the current market, the time was right to place the significant offering on the market,” he said.

“South Australia has a very robust economy supported by increased government spending on defence and by private sectors such as resources, agriculture and technology.

“With flexible building areas, full drive around access and only 20 per cent site coverage, the property is expected to garner interest from both South Australian and national owner-occupiers and investors.”

Woolworths opened the purpose-built distribution centre in 1999, and at its peak the facility employed more than 200 people and supplied Big W stores across South Australia, Victoria, Western Australia and the Northern Territory.

The retailer entered a 15-year leaseback when it sold the property in 2006 as part of a $846m sell-off of distribution centres across the country.

The facility includes a two-level ­office, cool room and centralised warehouse ranging from 11 metres to 13 metres high.

It offers 150,000sq m of hardstand area and is located on more than 36.5ha of land.

Mr Charles said the property could accommodate a wide variety of users, and also offered significant expansion potential.

“It is incredibly rare for vacant warehouses of this size to be offered for sale anywhere in

the country,” he said.

“Add the fact that it will be vacant and likely to trade at significantly less than its replacement cost, and this is an opportunity that simply should not be missed.”

Expressions of interest close on October 7.