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  • 10 September 2019 06:49

E-tailer Klika Group Triples Its Warehouse Space As Online Retail Booms

Melbourne, VIC, Release : September 10, 2019. For Immediate Release Australian e-tailer Klika Group, has leased the largest existing industrial facility in south east Melbourne this year in another sign of strong growth in online retail. The property at 41-51 Mills Road, Braeside is owned by ARA Australia and comprises circa 17,000 square metres of warehousing and 1,000 square metres of office and showroom space. Klika has announced that it will serve as its global headquarters complemented by its satellite offices in China and Philippines.

Leo Zaitsev, Klika’s Director of Operations, said “we have experienced strong year on year growth, albeit it has been constrained by the space we have been operating in and consequently we had to restrain our expansion plans. The move to these new premises means that we can really put our growth strategies into action and further expand our product categories and offering. We have spent a considerable time locating a suitable facility which would accommodate our expansion and be easily accessible to our staff, customers and pool of carriers”.

The move is one of many success stories for Klika Group following its recent announcement of the launch of its fourth online platform, Powertrain.com.au, targeting the fitness enthusiasts.

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In a deal negotiated by CBRE on behalf of ARA Australia, the property offers modern, open plan design facility with high clearance and provides strong transport links to major arterial roads which provide access to major freeways, including Eastlink, Monash Freeway and Springvale Road.

“We’re very pleased to welcome Klika onboard as a new tenant – their long term commitment to the Braeside warehouse reflects the quality and attractive location of this particular property, which is a key strategic asset within our broader $420-million industrial portfolio,” said Rohan Neville, Head of Asset Management.

“The property is well located, set to benefit from the Mordialloc Bypass, enabling even better service capabilities to Greater Melbourne and, in particular, Melbourne’s most-populous South East. We look forward to supporting Klika’s ongoing growth.”

David Aiello, Senior Director, Industrial and Logistics, South East Melbourne, CBRE, said “this is a significant transaction for the south east in what has otherwise been a softer leasing market in 2019. The 17,922sqm deal is the largest lease on an existing facility this year - at a time when current vacancy for buildings greater than 4,000sqm is just 1.5% in the south east. The Klika commitment also reaffirms the impact e-commerce is having on Melbourne’s industrial sector more generally - which together with our strong population growth - are the two most influential factors underpinning its robust performance”.

The Klika e-commerce group operates a hybrid business model with significant online market share across household product categories, selling its private label brands through its own platforms (Klika.com.au, Kahunaplay.com.au, Powertrain.com.au and Dropsite.com.au) and across most major Australian and New Zealand online marketplaces.

“We are continuously growing our private label offering and with the 30% growth in sales we have been experiencing over the preceding years and now with the added benefit of these larger premises, we are well positioned to take advantage of the forecasted growth in the e-commerce sector”, Zaitsev said.

About Klika Group (www.klika.com.au) Founded in 2005, Australian owned and operated, Klika Group has a unique hybrid online retail and e-wholesale business model, offering for sale directly to consumers more than 19,000 products via klika.com.au platform and supplying products from its 20 private labels such as Kahuna Trampolines, PowerTrain Fitness, Sarantino Furniture, Wallaroo outdoor equipment, Kolner, Yukon Trade, to name a few. Klika’s wide product range is also available across all the main online marketplaces in Australia. Awarded as Top 20 Online Retailers in the country, in addition to Power Retail Top 100 Retailers list, Klika differentiates itself in the online retail space by supplying a diverse range of products with a focus on bulky profile categories and a true omni-channel presence with phone sales and a physical store operating 7 days a week at its new 17,922sqm sqm central facility in Braeside Melbourne. The group is supported by two satellite offices in China and the Philippines. About CBRE( www.cbre.com.au ) CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

About ARA Australia ( www.ara-group.com ) ARA Asset Management Limited is a premier global integrated real assets fund manager. As at 31 December 2018, the Gross Assets Managed by ARA Group and its Associates is approximately S$80.1 billion across over 100 cities in 23 countries. Driven by a vision to be the best-in-class real assets fund management company, ARA Group and its Associates’ businesses include REITs, Private real estate funds, Country desks, Infrastructure and Real estate management services. For more information, please visit http://www.ara-group.com.

-ENDS- For further information please contact Jabeen Pastore- Head Of Marketing 0411 391 366 E: jabeen@klika.com.au www.klika.com.au

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