The CEO of leading fashion retailer, The Iconic, has stated at The Australian Finanical Review’s Retail Summit that Amazon’s arrival in Australia will accelerate the advance of e-commerce fashion retailing.
In December 2016, The Propertylink Australian Industrial Partnership II (PAIP II) acquired an A-grade industrial property in Yennora, located in the greater Parramatter metropolitan area, which is well exposed to the growing trend in online retail and the associated demand for large format logistics facilities located close to Sydney’s growing population.
As part of the acquisition The Iconic signed on to a new 7 year lease, providing a substantially larger fulfillment centre to meet the company’s growth expectations after achieving sales of $100 million in 2015.
Propertylink’s Chief Investment Officer Peter McDonald said “We have seen for some time the potential for structural change across industrial real estate brought about by e-commerce, in particular the desire for occupiers to be closer to their customers to facilitate the last phase of the supply chain.
“With the introduction of Amazon to the Australian market, we expect to see an increased focus by online retailers on last-mile delivery, as customers expectations of low turn around times between ordering and receiving their goods continues to compress.
“In Sydney and Melbourne, this generates exciting opportunities across the industrial real estate sector, as ongoing urbanisation driven by population growth reduces the availability of industrial property, while occupier demand continues to build, fueled by the rise of e-commerce.
“With over 80% of our wholly owned industrial portfolio located in Sydney and Melbourne, much of which is heavily positioned to in-fill locations, combined with our understanding of e-commerce tenants, Propertylink is well placed to benefit from future growth in this exciting space.”
Read more about The Iconic’s view on trends in online fashion here: