Toll Group has committed to a 10-year lease at ESR Australia's Westlink Industry Park in NSW that will see the development of a next-generation retail distribution and fulfilment facility, custom- built with future retailers' needs in mind.

Toll's new site spans 10.8ha and will comprise a c.68,000 sqm retail distribution and fulfilment facility, inclusive of office space and ancillary amenities with a 300-space multi-deck car park.

Under ESR Australia's and Toll Group's commitment to Environmental, Social, Governance (ESG) the new facility will be constructed minimising waste and incorporating recycled materials where appropriate with a target 5 Green Star Design and As Built rating.

The next-generation facility will largely be powered by renewable energy through the provision of extensive solar panels, supported by battery storage. It will seek to minimise consumption through sustainability initiatives such as LED lighting, rainwater harvesting and EV charging facilities.

The state-of-the-art warehousing and distribution facility will feature A$75 million of highly specialised advanced automation technology to support growth in e-commerce, retail and omnichannel fulfilment for Toll's retail customers. The facility will have a storage capacity of close to one million cartons and, through the provision of automated picking stations and connected zone-routing stations, is expected to dispatch over 37 million items each year.

Once completed, Toll's facility will employ over 200 workers on-site. The development's construction will also generate approximately 300 jobs to Sydney’s west, reflective of the rapid growth of the Mamre Road precinct.

This facility is the latest addition to Toll's existing facilities within ESR Australia's portfolio. This latest agreement will mark Toll's largest Australian warehouse facility to date, a testament to its confidence in ESR Australia's development and management capability.

ESR Australia's CEO, Phil Pearce, said, "ESR Australia's partnership with Toll, a leader in the warehousing and logistics industry, represents a significant milestone while further advancing Westlink's ambition of connecting businesses to the Australian market.

"ESR's customers are increasingly seeking local solutions of both scale and flexibility to cater to their own customers' needs.

"Toll and ESR Australia are aligned in their commitment to providing customers with seamless logistics offerings to support their future needs as a business, which will be achieved at Westlink through automated systems and high-quality infrastructure."

Mr. Nick Vrckovski, Toll President, Retail and Consumer, said, "Toll is pleased to partner with ESR at Westlink Industry Park. The new facility will be Toll's largest in Australia, and will feature the latest technology and automation so that retailers can deliver the best e-commerce experience for shoppers". Mr Pearce concluded, "Westlink Industry Park also extends ESR Australia's focus on delivering positive environmental and community outcomes, through continued uptake of renewable energy solutions and contribution to job creation."

ESR Westlink Industry Park is located at Abbots Roads, Kemps Creek NSW, approximately 52km West of Sydney CBD. The site offers prime exposure to future Western Sydney Airport and excellent connectivity to major motorways, the airport, and ports.

Construction of the site for Toll's new facility is being undertaken by Richard Crookes Construction and is anticipated to be completed in September 2024.