Perth's struggling industrial market has been given a shot in the arm with Sigma Healthcare beginning construction of a new $60 million distribution and fulfilment centre in Canning Vale in the southern suburbs.
The 15,000sq m centre is part of a national rollout of new industrial facilities by the listed wholesale pharmacy group and medicines supplier, which operates retail brands Amcal, Guardian, PharmaSave, Chemist King and Discount Drug Stores.
Sigma acquired the 3.55-hectare former Swan Brewery site at 10 Craft Street, Canning Vale, in August last year for $12.7 million.
Melbourne-headquartered industrial construction specialists Vaughan Constructions has been appointed to design and build the new facility, which is due to be completed by mid-2018 and will create 100 construction jobs.
The 15,000sq m centre is part of a national rollout of new industrial facilities by the listed wholesale pharmacy group and medicines supplier, which operates retail brands Amcal, Guardian, PharmaSave, Chemist King and Discount Drug Stores.
Sigma acquired the 3.55-hectare former Swan Brewery site at 10 Craft Street, Canning Vale, in August last year for $12.7 million.
Melbourne-headquartered industrial construction specialists Vaughan Constructions has been appointed to design and build the new facility, which is due to be completed by mid-2018 and will create 100 construction jobs.
The new facility will be fully equipped with advanced material handling systems to improve order fulfilment and distribution of medications to Western Australian pharmacies, hospitals and other healthcare providers.
Integral role
"This is a significant investment by Sigma Healthcare which outlines the company's commitment to servicing the vital healthcare needs of patients across Western Australia," said Sigma CEO and managing director Mark Hooper.
"This facility will service pharmacies across the state from Kununurra, over 3000km north to Esperance, a further 700km south and everywhere in between."
Vaughan Constructions managing director Andrew Noble welcomed the opportunity to "play an integral role in the improvement of Sigma's operational efficiencies through the construction of this pivotal piece of infrastructure".
ASX-listed Sigma is locked in a court battle with the My Chemist/Chemist Warehouse Group over the supply of generic pharmaceuticals, with its share price taking a tumble last week after it issued an earnings warning linked to the dispute.
According to the latest LJ Hooker Commercial & Industrial Property Monitor, about $400 million of annual industrial approvals are in the Perth pipeline.
"Given the weakness in the leasing market, a rebound in industrial construction does not look likely, unless underpinned by unforeseen major pre-commitments," LJ Hooker said.While the leasing market remains weak, the report said that investor demand for prime properties with long weighted lease expiries was still strong though these remained tightly held.
According to the latest LJ Hooker Commercial & Industrial Property Monitor, about $400 million of annual industrial approvals are in the Perth pipeline.
"Given the weakness in the leasing market, a rebound in industrial construction does not look likely, unless underpinned by unforeseen major pre-commitments," LJ Hooker said.While the leasing market remains weak, the report said that investor demand for prime properties with long weighted lease expiries was still strong though these remained tightly held.