A super fund giant, which has launched headlong into the premium warehouse end of Australia’s industrial property boom, believes there is still plenty of money to be made from owning sheds.

ISPT, a giant property development and investment entity owned by some of the country’s largest industry super funds, controls a $17 billion Core Fund. And it is allocating a bigger portion of that cash to invest in big sheds on the eastern seaboard.

Demand from large companies for high-quality industrial sheds is being driven by population growth, e-commerce, non-discretional spending and a growing circular economy, all of which are “showing good signs for us that we’ve still got a really healthy market,” said ISPT head of industrial property Tim Jackson.

Coles, Australia Post, Couriers Please, Harris Farm Markets and Karras Cold Logistics are recent tenants in ISPT’s super prime facilities.

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Coles has signed a five-year lease over an 18,975 square metre warehouse in its speculatively built facility at Eastern Creek, in Sydney’s west. Australia Post inked a 10-year lease on an 18,460 square metre shed in the Bessemer Business Park in nearby Blacktown.

Couriers Please, Harris Farm and Karras Cold Logistics have pre-committed to 57,000 square metres in the nearly finished $420 million Elevation park in the Greystanes industrial precinct, about 27 kilometres west of Sydney’s centre.

Jackson said ISPT’s current industrial portfolio was worth around $3.7 billion. ISPT wants to lift the Core Fund’s industrial portfolio from it current level of about 12 per cent, up to 35 per cent.