The new owner of the the Coles Distribution Centre at South Goulburn is committed to bringing another large employer to the city, a spokesman says.
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Gill Property director, Stephen Hemingway, confirmed the 42,500 square metre centre in Ducks Lane sold to Melbourne-based Pelligra Group last week. The company paid "circa" $70 million for this and a Woolworths Distribution Centre (DC) in Warwick, Queensland. Mr Hemingway would not say how much Pelligra forked out for the Goulburn outlet.
Coles announced in October, 2018 that the local centre would close, along with DCs at Smeaton Grange, Eastern Creek and two in Queensland by 2023. Instead, two automated centres, one each in NSW and Queensland, were to built to "increase efficiency" and "improve workplace safety," as part of a broader expansion plan and demerger from Wesfarmers.
Employment numbers range from 300 to 400 at the Goulburn complex, depending on work availability, the United Workers Union says.
Mr Hemingway said development company Pelligra were specialists in acquiring major industrial sites and regenerating them. Two years ago it bought the Holden site in Adelaide and in 2019, the Ford properties at Geelong and Campbellfield in Victoria.
The Goulburn Coles DC was sold in an off-market, eight-month process, via expressions of interest. Gill Property approached potential buyers directly. A Melbourne family, whose identity Mr Hemingway declined to disclose, owned the building. They bought it four to five years after its construction.
He said Goulburn's location between Sydney and Canberra on good transport routes attracted Pelligra.
"Both (including the Queensland DC) are good buildings with modern construction and are easily adaptable for other uses," Mr Hemingway said.
The council's GM Warwick Bennett previously told The Post that Coles had negotiated an extension to its lease, beyond 2021. Mr Hemingway said the healthy rental return over the next three years enabled Pelligra to weigh up options. Coles has a lease until February, 2022, with options to renew.
"They'll try to see if Coles will stay, but it's unlikely. We are talking to a few potential tenants and the plan is to get them to occupy it after Coles leaves," he said.
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Mr Hemingway declined to name the parties or types of industries at this stage but said his company was working closely with the council to secure a major employer.
"There are more than 200 people employed there so the intention is to retain as many jobs as possible...Pelligra is very cognisant of that," he said.
The council has been speaking to the National Archives about moving part of its record and information storage to the building. Mr Hemingway said the vast space could accommodate multiple tenants.
Meantime, United Workers Union organiser, Ghazi Noshie, said the union was expecting the DC to close this year but an exact date was unknown.
"It was supposed to shut last year but Coles extended it due to a business decision," he said.
He told The Post that some workers had accepted voluntary redundancy but couldn't say how many.
"Employees have accepted it will shut down but Coles is doing its best to make sure it's as smooth as possible. It's sad but that's the reality," Mr Noshie said.
In the meantime, he said the centre remained busy.
A Coles spokeswoman said no decision had been made regarding a closure date for the Goulburn distribution centre.
"Coles will continue to keep our team members updated on any decisions that affect them and we are committed to working with the team at the distribution centre to transition into other employment opportunities," she said.
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Louise Thrower
If you have a story to tell, drop me a line at louise.thrower@austcommunitymedia.com.au or call 0418 229 678.
If you have a story to tell, drop me a line at louise.thrower@austcommunitymedia.com.au or call 0418 229 678.
