L'oreal Anz Commits To Mega $40m Queensland Distribution Centre

L'Oreal ANZ commits to mega $40M Queensland distribution centre

L'Oreal Groupe has committed to a major new purpose-built DC in Queensland.

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Australian Property Markets


4 August 2023

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The world’s largest beauty company, L’Oréal Groupe, has signed a lease at Goodman Redbank Motorway Estate, Queensland, for a major purpose-built distribution centre to support their growth and customer demand.

L’Oréal Australia and New Zealand has committed to a seven-year lease for a modern,14,533sqm facility in Brisbane, which will support its Melbourne distribution centre in getting products to customers on the east coast more efficiently.

The warehouse layout will be optimised to streamline future business and operations, delivering a strong outcome for its 30 beauty brands in a highly competitive industrial market.

“At L’Oréal ANZ, we are dedicated to delivering exceptional products and services to our valued customers and partners,” said Rodrigo Pizarro, CEO of L’Oréal ANZ.

“Establishing a new distribution centre in Brisbane represents a significant milestone in our growth strategy. This expansion will enable us to better serve our customers by reducing delivery times and ensuring products are available when and where they are needed.”

L’Oréal ANZ joined forces with supply chain consultant and long-term partner TMX Global to undertake a comprehensive expression of interest and tender program, identifying existing building opportunities as well as permit-approved sites and speculative facilities that could meet its requirements.

A key challenge identified by L’Oréal ANZ was ensuring the site was operational in early 2024, which proved particularly difficult with detailed and specific site requirements, meaning existing facilities were not suitable. The result was procuring a premium grade distribution centre with Goodman, which aligned with L’Oréal ANZ’s plans for future growth alongside its corporate and sustainability requirements.

The beauty giant has been committed to tackling the issue of climate change for over 15 years. In 2020, with the L’Oréal For the Future program, new targets were put in place to ensure business activities were respectful of the “planetary boundaries”.

In 2015, L’Oréal was among the first one hundred companies to join the Science-Based Targets initiative, which encourages businesses to align their path to decarbonisation. All L’Oréal sites in Australia and New Zealand are carbon neutral, and this was achieved by improving energy efficiency and using 100% renewable energy.

The L’Oréal development at Goodman Redbank Motorway Estate is targeting a 4-star Green Star Buildings rating with sustainability features including a 365kW solar array system – generating the equivalent energy of powering 100 Queensland homes, and electric vehicle charging points. In addition, the development is expected to be carbon neutral upon practical completion.

L’Oréal ANZ’s expansion and new, purpose-built Queensland facility signals a new era for the company, according to its DC Future State Project Director, Con Vasilopoulos.

“We identified that we were nearing capacity at our Melbourne distribution centre and saw an opportunity to support our operations with a second national facility in Queensland. Goodman Redbank Motorway Estate will allow us to streamline our operations and meet the changing demands of our growing client base.

“We have been working alongside TMX Global since 2018 and they have been instrumental in guiding us through the supply chain advisory and execution process, delivering us a facility that is aligned with our operational and sustainability needs today and into the future.”

Jason Little, CEO Australia, Goodman Group said “L’Oréal is a welcome addition to our Australian customer base, extending our relationship with the global brand outside Hong Kong for the first time. The new facility at Goodman’s Redbank Motorway Estate will allow L’Oréal to be close to large consumer populations, which helps them meet rising delivery and service expectations. It also provides greater resilience for the supply chain and opportunities to be more sustainable”.

TMX Global coordinated the timely delivery of L’Oréal ANZ’s new facility to support the existing capacity of the Melbourne site, said TMX Director Matthew Frazer-Ryan.

L’Oréal ANZ’s site requirements were detailed and specific. We are proud to have supported their timeline, operational requirements, and produce a result that exceeds their expectations.

Matthew Frazer-Ryan, TMX Director of Property

We are thrilled to have achieved such a great outcome for L’Oréal ANZ in a highly competitive industrial market. Goodman’s Redbank Motorway Estate will allow L’Oréal to take their operations to the next level, and we look forward to working alongside them on additional projects in the future.

Mathew Frazer-Ryan, TMX Director of Property

This article was originally published by Australian Property Markets on August 4, 2023.

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