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04/09/2008
The Reject Shop and Walker Sign 10 Year Lease Deal

The Reject Shop has signed a 10 year lease with Walker Corporation at their new CITISWICH Industrial Estate at Bremer, near Ipswich.

The deal is for the construction of a new Northern Distribution Centre for The Reject Shop, with the capacity to service up to 200 stores throughout QLD and Northern NSW.

The 25,000sqm facility is being built to accommodate the expansion of The Reject Shop chain, which opened over 21 new stores within the past 12 months, and plans to open 20 stores nationally this year. 

Gerry Masters, Managing Director of The Reject Shop said the company was attracted by the location in the heart of south east QLD’s growth corridor.

“Ipswich is an attractive destination for our business as it is the focal point for growth in south east Queensland and has a large labour market.  The area provides affordable rental options and land flexibility compared to other locations we considered,” said Mr Masters.

“CITISWICH offers the flexibility to accommodate our purpose built facility, as well as providing exceptional access to the national highway network.”

Lang Walker, Executive Chairman Walker Corporation said that growth businesses, like The Reject Shop, are moving into Ipswich and this shows confidence in the vision for the growing region.

“Smart businesses like The Reject Shop are recognising that locating their business in the Western Corridor means they will directly benefit from massive transport and services infrastructure investment by government” said Mr Walker. 

“The rapid economic development of the Ipswich area means that estates such as CITISWICH become the logical move for businesses wanting to capitalise on QLD’s growth opportunities” he said.

The Northern Distribution facility, purpose designed by The Reject Shop and constructed by Walker, will be built on a 5.1HA parcel of land in the first stage of the 335HA CITISWICH estate. 

This new QLD facility complements the Melbourne Airport National Distribution Centre opened by The Reject Shop in 2006. Andrew Courtney of Gallagher Jeffs has been the Project Advisor to The Reject Shop over several years in the development of these broader global logistics and supply chain initiatives. 

Construction of the new northern distribution centre will commence in March 2009 and the development is expected to be complete from the new facility by February 2010.  The Reject Shop is likely to commence servicing its stores from the facility by July 2010.

The new facility will comprise a two storey office complex, and a computerised automated racking and conveyor system which will enable a greater turn around of goods in a more economical fashion. Over 60 percent of construction waste from the new facility will be re-used or recycled, all fixtures will be no less than AAA rated, and in addition, rain water harvesting will also be undertaken.

Walker will employ approximately 70 staff and subcontractors to construct the new facility.  Once in operation, the new facility will employ up to 150 people.  

The Mayor of Ipswich, Councilor Paul Pisasale, said today “We are delighted that a company of The Reject Shop’s great standing have chosen to locate their new distribution facility in Ipswich – this shows confidence in our City and State. Ipswich City is on the march and will continue to experience more growth as the strategic heart of the Sunshine State”.

“We have formed a great partnership with Walker Corporation and we look forward to the continued expansion of CITISWICH” said Councilor Pisasale.

The Reject Shop joins Capral Aluminium, Hume Masterpanel and Australian Hardboards at CITISWICH, alongside several other businesses from the logistics, construction, fabrication and storage industries that have committed to the first stages of the estate.

Walker has over 30 years experience in the industrial sector, delivering purpose-built facilities for high profile clients including Toll Ipec, TNT Logistics, 3M, Grace Records Management and Bluescope Steel.

CITISWICH is the largest development in Walker’s industrial portfolio, which also comprises a 100HA estate in Adelaide’s north, and a 35HA development at Hume in the ACT.Sales and leasing enquiries can be directed to Troy Whalan of Colliers (07) 3370 1737 or Paul McMahon of Savills (07) 3221 8255.


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