Inflight catering company Foodfolk Australia has leased a major new facility at Tullamarine amid surging interest in cold storage assets.

The strategic location of the 3,628sqm facility at 5 International Square and its cutting-edge inclusions generated strong interest from the cold chain logistics sector according to the CBRE leasing agents Corey LeFavi and Jake George.

The deal coincides with robust growth in Australia's cold chain logistics sector.

The food and beverage and pharmaceutical industries are the primary drivers of this growth, along with factors like population growth, increased e-commerce, and higher international trade volumes according to new CBRE research which forecasts that Australian consumers will spend over $200 billion on food retail by 2028.    

The recent release of CBRE’s Cold Chain Logistics report highlights Australia has 0.4 cubic metres of refrigerated warehouse capacity per urban resident, behind the US at 0.6 cubic metres and the Netherlands at 0.9 cubic metres. 

A surge in online grocery sales has further intensified the need for cold storage. In 2023, Australian consumers spent an estimated A$13 billion on online food and liquor purchases, indicating the need for extensive cold storage solutions for these temperature-sensitive goods.

Mr LeFavi said, “The Tullamarine deal showcases the vibrancy and potential of Australia's cold storage market. The demand for these facilities stems from both domestic and international trade, especially in the food and beverage industry.

This property is an ideal match for Foodfolk Australia's operations, providing top-notch facilities and a strategic location. We believe there will continue to be more investments in the cold chain logistics sector, further bolstering market growth.”

The building has a cool room area of 1,276sqm, a freezer area of 165sqm, a multi-story office space measuring 628sqm and a 1,036sqm warehouse. Additionally, the facility includes six roller shutter doors, two loading docks, and a high-powered 1000amps power supply.

The long-term lease agreement is for an initial term of 10 years, with the option to extend for two more terms of five years each. The annual lease rate stands at $195psm plus GST and outgoings, amounting to $707,460 annually plus GST and outgoings.

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