Metcash Limited announced that it has signed a long-term lease agreement with the Goodman Group for the construction and leasing of a new `best in class' wholesale Distribution Centre (DC) at Truganina, Victoria. The new 115,000m² DC, which will replace Metcash's existing 90,000m² DC at Laverton, is expected to help further improve the competitiveness of independent retailers in Victoria through delivery of greater efficiencies and by providing access to a wider range of products. It is also expected to benefit local suppliers by providing an efficient route to market through access to Metcash's extensive distribution network.

The new Truganina DC will house products for both Food and Liquor pillars, and be equipped with automation to suit retail networks (semi-automated `Goods to Person' and `Layer Picking'). The DC will be built to align with the new 5-Star Green Star sustainability rating which reflects Australian Excellence in sustainable building design. Construction of the DC is scheduled to commence in the first half of 2023, with completion expected mid 2024.

The capital cost to Metcash for racking and other fitout of the DC is expected to be $70 million, with $20 million scheduled to be incurred in 2023.