Marley Spoon finds new Sydney digs

Woolworths-backed meal kit service Marley Spoon will shift to a larger facility in Sydney as appetite grows for its products.

Marley Spoon, which is the second-largest meal kit delivery service, and has expanded its premium range to include dinner party boxes curated by chef Matt Preston. Picture: Supplied

Delivery food and last mile delivery facilities have emerged as big winners from the coronavirus crisis and their strength has been put on display with meal delivery service Marley Spoon striking a deal for a new Sydney warehouse with property funds group Charter Hall.

The global subscription-based meal kit service, which operates in Australia, the US and Europe, has rocketed on the back of demand for its services amid global lock downs and restrictions on restaurants.

Supermarket giant Woolworths also has an ­equity stake and marketing tie up with Marley Spoon, which is the second-largest meal kit delivery service, and has expanded its premium range to include dinner party boxes curated by chef Matt Preston.

The subscription based meal service has also seen its share price rocket this year with many customers avoiding supermarkets and restaurants being virtually off-limits in some states. The company delivered 7.5 million meals delivered in the first quarter of 2020 alone.

In the latest deal, the Charter Hall Prime Industrial Fund has secured Marley Spoon on a ten year pre-lease at a new facility in Wetherill Park, Sydney, worth about $90m.

Marley Spoon’s pre-lease is for a 14,200sq m purpose-built, temperature-controlled logistics facility in Sydney’s west. Relocating and expanding from their existing premises in Strathfield, the new facility has been designed to accommodate the significant growth of Marley Spoon and its Dinnerly service.

“Fundamentally, we are seeing a change in people’s shopping habits, as more consumers look to online shopping for convenience and affordability,” Marley Spoon Australia managing director Rolf Weber said.

Charter Hall head of development, industrial and logistics, Andrew Simons, said the company was supporting the growth in online grocery retailing and was boosting substantial portfolio in the food logistics sector.

In a sign of its confidence in the area, Charter Hall has also committed to construct another 12,200sq m premium grade logistics facility next to the Marley Spoon facility even though it is yet to secure a tenant.

Charter Hall has industrial and logistics developments of about $2bn on the drawing board or underway.

The deal with Marley Spoon was brokered by Raj Chaudhary, associate director at CBRE.