Dexus's Horizon 3023 builds momentum

Accelerated growth in ecommerce drives demand for new premium industrial property.

Strong demand for high quality logistics facilities to support the growing needs of ecommerce and other growth sectors continues to underpin the activation of Dexus’s industrial developments across the east coast of Australia.

The momentum across Dexus’s industrial development business has resulted in significant leasing being achieved at the Horizon 3023 estate well ahead of the original target.  

Located in a key industrial market in Melbourne, Horizon 3023 is a 127 hectare masterplanned industrial estate with convenient access to freight and logistics networks. 

The online growth story continues to have a profound effect on the Sydney and Melbourne markets with elevated levels of demand from food, furniture and fashion companies looking to establish or expand their online platforms. Since the start of the pandemic, online turnover has doubled with online penetration increasing to circa 14% of total retail sales compared to 8.8% pre COVID-19.  

Dexus is helping meet that demand through the development of up to 450,000 square metres of modern large scale high-tech manufacturing, logistics and warehousing facilities at Horizon 3023. Dexus and its third-party capital partners are investing an estimated $620 million over the life of the development, and on completion, the estate is expected to support around 5,000 to 6,000 jobs.

The estate locational attributes have attracted leading global and Australian ecommerce brands including Amazon Australia which committed to a circa 36,700 square metre facility that will be the retailer’s fulfilment centre servicing the Melbourne market. Amazon joins Hello Fresh, Electrolux, Mitre 10, eStore and Myer who have all committed to the estate in FY21. 

Capitalising on the strong demand, an additional 6.8 hectares of land adjacent to the existing industrial estate was acquired during the year. This improves the existing masterplan and provides the opportunity to create additional industrial product to respond to an active leasing market.

Leasing momentum has taken commitments at Horizon 3023 to circa 226,000 square metres. Along with an adjacent speculative building of 60,000 square metres to be constructed to leverage synergies in the project delivery, new buildings are now committed or under construction across 63% of the expanded developable area. 50% of the estate is leased, which is 24% above the original
leasing forecasts.

For more information about leasing at Horizon 3023, please click here,

DWPF Fund Manager

Michael Sheffield

DALT Fund Manager

Jonathan Davies

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