The Goodman Group will develop a 51,725 sqm warehouse and office facility for Kmart in Lytton, Queensland, on an initial 15-year lease term with options.

This pre-commitment follows the delivery of a 76,735 sqm distribution centre for Kmart in Truganina, Victoria, in February 2011. The new facility in Queensland will follow the same development platform, ensuring consistency across Kmart’s distribution facilities.

Construction of the 51,725 sqm facility is scheduled to commence in May 2011, and will comprise of a 50,036 sqm warehouse and 1,689 sqm of office space, hardstand area and additional hardstand expansion space.

In order to ensure Kmart’s space requirements are met for the duration of the development period, the retailer has entered into a new short-term lease for 28,350 sqm of warehouse space at Bradman Distribution Centre, Acacia Ridge. This warehouse gives Kmart the flexibility to manage its transition into the new facility targeted for April 2012.

Kmart has to date committed to more than 270,000 sqm of space in Australia and 13,420 sqm in New Zealand with the Goodman Group.

The new facility will be developed on an 11.6 hectare site at Lytton, which Goodman acquired from the Queensland Government’s Property Services Group. It is strategically located with convenient access to the Port of Brisbane, Brisbane Airport and major arterial roads.

This story first appeared on T&