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Post By starrdust
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Power User
Amazon shores up property
Online giant Amazon has secured 2.11 hectares of land in Sydney's south-west as part of its digital and distribution strategy, as it prepares to launch its direct business in Australia.
According to sales records registered with the NSW Land Titles office, Amazon paid $7 million for a vacant site at Lot 4331, 42A Bluett Drive, Smeaton Grange, from private vendor, Kingcor P/L last February and the transfer was completed recently. This land could be developed into a smaller fulfilment centre, as Amazon refers to its warehouses.
It adjoins a warehouse of the same address, which it has leased from Goodman Group since February 2105.
Amazon also signed a 10-year lease at the Goodman Group's Bungarribee Industrial Estate, Eastern Creek, in Sydney's south-west, as it cements its presence in the country.
Lease documents registered with the NSW Land Titles office say the two built properties will be used for "network operations and data centre and "any other uses permitted by law". One is a data centre, presumably for the Amazon Web Services, which have been operating in Australia for some time, while the site at Bungarribee is described on the documents as a warehouse.
Industrial property agents have also said Amazon is in discussions with Goodman for a larger warehouse centre at its Oakdale South industrial estate, also at Eastern Creek. Goodman chief executive Greg Goodman has repeatedly said he could not comment on any Amazon deals.
It comes as Amazon sent an email to its third-party sellers asking them to be prepared by 2pm last Thursday for a soft launch of Amazon Marketplace. As yet, the website is selling only its traditional books.
According to the documents, Amazon has leased part of Lot 6, site 4A on the Bungarribee estate, which is a new 17,002-square-metre development with the crucial access to transport infrastructure, being the Great Western Highway in Huntingwood. It runs from January 2015 to 2025 and has an option to renew for a further 10 years.
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