A new purpose-built cold storage, egg grading and distribution facility at Merrifield Business Park in Melbourne’s north leased to Sunny Queen Australia by Colliers.

In a deal negotiated by Colliers, Sunny Queen Australia has signed a major lease with developers, MAB and GPC, for a new purpose-built cold storage, egg grading and distribution facility at Merrifield Business Park in Melbourne’s north.

Construction has commenced with Texco for the Sunny Queen development, which will occupy a 2.7-hectare site with a total Gross Lettable Area of 14,345 square metres, comprising 8,120 square metres for Sunny Queen and an additional 6,225 square metres of speculative warehouse space. All scheduled for completion in Q4 2026.

The state-of-the-art facility will consolidate Sunny Queen’s operations from Truganina and Hallam into a single advanced hub, supporting its ability to supply more than 1.5 billion eggs annually as Australia’s population continues to grow.

Developed by MAB and GPC, Merrifield Business Park forms part of Merrifield, Victoria’s largest mixed use masterplanned community, spanning 900 hectares. Offering direct connectivity to major road, airport, rail and port infrastructure and immediate access to the Hume Freeway and future links to the Outer Metropolitan Ring Road, Merrifield Business Park is a strategic choice for national distribution. Colliers negotiated the pre-lease agreement.

Corey Vraca, Associate Director of Industrial & Logistics at Colliers, said, “This commitment by Sunny Queen is a clear signal of confidence in Merrifield Business Park as a strategic hub for national food distribution. The ability to consolidate operations into a purpose-built facility will deliver efficiency and capacity to meet rising consumer demand, while positioning Sunny Queen at the heart of one of Melbourne’s most connected industrial precincts.”

Merrifield Business Park is already home to some of Australia’s most significant occupiers and landowners, including Ford, Dulux, D’Orsogna and Stellantis reinforcing the precinct’s reputation as a hub for leading businesses. The location also benefits from a large workforce catchment of approximately 575,000 people.

Jamie Buxton, General Manager Commercial and Industrial at MAB, said, “Merrifield Business Park is designed to meet the needs of leading businesses seeking efficiency and growth. Its scale, connectivity and amenity make it one of Australia’s most significant industrial precincts, and this commitment from Sunny Queen reinforces Merrifield’s position as a hub for food and logistics operators.”

Colliers’ latest Cold Storage Report reveals that speculative development in the sector is on the rise, driven by rapid absorption of new supply and strong investor confidence in sustained structural demand. Demand for cold storage continues to gain momentum across key occupier sectors. With revenue growth accelerating in agribusiness, food retail, online grocery and pharmaceuticals, the need for temperature-controlled logistics is expected to remain robust in the years ahead.

Nick O’Brien, National Director of Industrial & Logistics at Colliers, noted, “Cold storage is one of the most undersupplied asset classes in Melbourne, with vacancy rates near zero and rents now ranging between $230 and $385 per square metre, well above traditional industrial rates. Merrifield offers occupiers a rare opportunity to secure modern, compliant facilities in a market where demand is accelerating and supply remains extremely constrained.”

Credit: The Industrial. See article here.