Both the Brickworks Limited (ASX: BKW) share price and the Goodman Group (ASX: GMG) share price are pushing higher on Tuesday after a positive update on their 50:50 joint venture – JV Trust.
At the time of writing the Brickworks share price is up over 5% to $15.68 and the Goodman share price is up 1.5% to $15.25.
What was the update?
This morning Brickworks announced that a lease pre-commitment for 20 years with ecommerce behemoth Amazon has been secured at JV Trust’s Oakdale West Estate in Western Sydney.
Amazon is the second customer to pre-commit to the new state of the art distribution facility at Oakdale West. This follows the announcement of an agreement with supermarket giant Coles Group Ltd (ASX: COL) in January 2019.
The target building completion date is in the second half of 2021. Following completion of the two facilities, the gross assets held within the various JV Trust assets across Western Sydney and Brisbane is expected to exceed $3 billion.
In addition to this, JV Trust has sufficient remaining land to provide in excess of a five-year development pipeline.
Brickworks Managing Director, Mr Lindsay Partridge, commented: “Brickworks is delighted to further strengthen the JV Trust by securing this significant pre-commitment. Amazon is well known around the world as a symbol of the accelerating trend to online shopping. We are at the forefront of the ecommerce revolution, with our facilities playing a pivotal role in helping our customers meet the supply chain needs of this new economy.”
“We are also excited by the design of the facility, which responds to the increasing need for technology innovation from our customers. This project will deliver profit during the development phase and further rental income for the Property Trust once complete,” he added.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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