Toy ‘R’ Us is committing to a state-of-the-art logistics facility at ESR-owned Clayton Business Hub brokered by Colliers’ James Stott and Gordon Code, in conjunction with Jordan Grigg of Direct Property Connect.

Toys ‘R’ Us will occupy 19,650sqm on a 10-year lease.

Located at 45 Mcnaughton Road in Clayton South, Victoria, the new premises has been specifically designed to the company’s requirements.

CBH is located in the Monash National Employment Cluster, an area earmarked for current and future growth in education, health and research facilities. The business hub provides excellent access to major transport infrastructure in a strategic last mile location.

“Over the past 18 months, ESR Australia has been transforming this 6.4ha outdated manufacturing site into a state-of-the-art business estate, working closely with our innovation-minded customers to develop bespoke facilities to serve their needs today and well into the future,” Phil Pearce, CEO of ESR Australia, said.

Mr Stott said one of the key themes to emerge in the industrial sector since the pandemic was a ‘flight to quality’, as occupiers look for prime grade facilities in strategic infill locations.

“Toys ’R’ US identified Clayton South as a key target location very early on In the process and the decision to partner with ESR was a no-brainer, based on CBH’s strategic position in a last mile location balanced with excellent proximity to key customer demographics,” Mr Stott said. “We congratulate ESR who have now achieved 100% occupancy at this landmark estate.”

The leasing deal follows the rebranding of Funtastic to Toys ‘R’ Us earlier this year.

“In alignment with the company’s growth aspirations and vision, these new warehouse and office facilities mark a key strategic milestone that will enable Toys ‘R’ Us to scale the business considerably and accelerate e-commerce operations,” Dr Louis Mittoni, Toys ‘R’ Us CEO and managing director, said.

“As shopper demand via e-commerce pillars Toys ‘R’ Us, Babies ‘R’ Us and Hobby Warehouse continues to grow, this purpose-built state-of-the-art distribution centre will assist the company meet increased demand, improve cost efficiencies, and deliver higher levels of customer service and experiences to our shoppers.”

Representing Toys ‘R’ Us as their Development Advisor throughout the transaction was Direct Property Connect’s Jordan Grigg.

“It’s exciting to be part of this e-commerce revolution which is refining the norms of industrial development,” Mr Grigg said.  “This facility has been designed and the site selected to respond directly to the rapidly changing distribution network needs of the Toys ‘R’ Us business along with maximising the benefits of customer interface opportunities.”

Mr Stott said while the growth of ecommerce was not a new narrative over the past 24 months, it was particularly pleasing to play a small part in seeing the accelerated growth trajectory of a storied brand since pivoting to a digital-first retail model.

“This premier logistics centre is the third deal we have brokered on behalf of Toys ‘R’ Us over the past 12 months and importantly will exponentially grow its logistics capabilities and also become a hub where customers can engage with the Toys ‘R’ Us and Babies ‘R’ Us brands.”

The initial lease is for 10 years with the option of two five-year extensions. Development of the facility by ESR Australia is expected to be completed by June 2022.

To request a lease analysis please contact the leasing agents via the below contact details.