Goodman Group has secured a pre-commitment to develop an 82,015 square metre Metcash warehouse in western Sydney.

It will be one of the largest industrial developments to be undertaken in the country this year and is the first pre-commitment at the 56 hectare estate, which is bored by the M4 Motorway, Great Western Highway and Brabham Drive in Huntingwood West in Sydney.

The facility will become Metcash’s primary NSW distribution centre for the storage, handling and wholesale distribution. It will include a 75,535 sqm warehouse and 6,480 sqm of office space and the facility has capacity for 22,000 sqm of future warehouse and office expansion space. A 15 year lease term with options has been agreed.

“Our new NSW Mega distribution centre in Western Sydney will allow us to consolidate local operations and centralise the NSW distribution hub across our grocery, liquor, fresh, CStore and general merchandise divisions, providing cost and operational efficiencies for our business,” Andrew Reitzer, CEO of Metcash group of companies, said.

“This new NSW facility will be based on our existing model for other states, which have demonstrated major improvements in productivity and business synergies.”

Funding for the Metcash facility will be split 50/50 between Goodman Group and the Goodman Australia Industrial Fund, with both entities joint owners of Bungarribee Industrial Estate. On completion, the Metcash facility will have an end value of $129 million.