Brickworks will reap the rewards of the online shopping boom
By Alice Uribe
SYDNEY – Brickworks Ltd. is expected to continue to benefit from the boom in online shopping as more companies seek to rent automated high-rise warehouses to meet growing consumer demand.
Lindsay Partridge, managing director of the ASX-listed brick maker, said its record underlying after-tax net profit for the full year was largely due to demand for online shopping. This resulted in demand for Brickworks warehouses and distribution centers from Coles Group Ltd., Woolworths Group Ltd. and Amazon.com Inc.
In the future, high-rise warehouses that allow automation to meet consumer demand and can generate higher rents will become more prevalent, he said. Brickworks will build more than 250,000 square meters of new warehouse space over the next two years, he said.
“Distribution companies are looking to automate their warehouse operations,” Partridge told The Wall Street Journal.
“If you’re in food distribution and your competition has an automated warehouse, and you don’t, well, you’ve got a problem. So it’s the competition that drives it.”
Brickworks announced Thursday that its underlying NPAT rose 95% to A $ 285.2 million ($ 206.5 million) for the 12 months through July. His Property Trust, a joint venture with logistics expert Goodman Group, builds the warehouse assets. The Trust generated a record annual profit before interest and taxes of A $ 253 million.
The company said Thursday that it is “going through a period of unprecedented development” within the Property Trust.
It has secured a total of 284,100 square meters of pre-lease commitments, Brickworks said, with the completion of facilities over the next two years expected to result in an increase in gross rent within the trust of approximately $ 51 million. Australian dollars and an increase in the value of leased assets. of A $ 1.2 billion.
“The pre-leases that we have coming up in this quarter of a million square meters are quite high rents, because they are high value buildings. They have 10 stories, so the rent per square meter we get for those is much higher than what we’ve traditionally got for a normal warehouse, ”Mr. Partridge said.
As part of the joint venture with Goodman Group, Brickworks provides the land and Goodman Group maintains customer relations.
Write to Alice Uribe at [email protected]