Woolworths is planning a two-storey warehouse in Charter Hall’s south western part of the Light Horse Business Hub in Eastern Creek.

The hub is located at the intersection of the M4 and M7 motorways and adjoining the Light Horse Interchange. It is one of the last significant industrial development sites in Eastern Creek.

With an estimated capital investment value of $373m, the facility will become part of the supermarket’s supply chain distributing to stores across the broader NSW region.

The facility will support Woolworths’ business growth strategy while optimising its NSW chilled and fresh network, which apparently cannot be serviced by its existing Minchinbury facility.

More than 230,000 cartons per week are handled via less efficient external third-party logistics operations, with the overflow volume serviced by AMC Arndell Park, which will reach maximum operational capacity by next year.

Last year, Charter Hall picked up the leasehold interest in the 35ha parcel of land in Eastern Creek.

This strategic holding is leased from the Western Sydney Parklands Trust.

Charter Hall entered into a five-year development agreement with the Trust to develop the hub and will enter into a 90-year ground lease providing an annuity to the Trust to contribute to the cost of operating, maintaining and enhancing the Western Sydney Parklands.