Metcash (ASX:MTS) has inked a long term lease agreement with Charter Hall to build and lease a distribution centre at Gepps Cross in South Australia.
This new distribution centre will replace Metcash's existing distribution centre at Kidman Park and should provide access to a wider range of products.
This was a precondition to the multiple supply agreements Metcash entered into in August with Foodland store owners.
It will also serve as a distribution centre for Metcash's Australian Liquor Market operation in South Australia.
Shares in Metcash (ASX:MTS) closed 0.7 per cent lower to $2.85 on Friday.