This article is from the Australian Property Journal archive
AN unprecedented industrial development site in Sydney is up for grabs, completing the trio of offerings across the Eastern seaboard.
Building materials company CSR is selling a 194ha site, its former brick manufacturing and quarry site at 235 Martin Road, Badgerys Creek, adjacent to the new Western Sydney International Airport.
CBRE’s Cameron Grier and Jason Edge have been appointed to run the campaign.
Grier said the EOI process will provide an unprecedented opportunity to develop a $3-4 billion end value industrial estate in Sydney’s land constrained industrial & logistics market.
“Sydney has a chronic shortage of industrial land available for development over the next decade.
“At the same time, occupier footprints are increasing rapidly, with many businesses struggling to find suitable sites that can cater for logistics facilities over 40,000 sqm,” he added. “This supply/demand imbalance is expected to drive significant national and international interest in the CSR site, given its prominent Badgerys Creek location and surrounding multi-billion infrastructure projects.”
Sydney’s industrial land shortage will be a key driver of buyer interest, with an upcoming CBRE report highlighting that just 4% of the city’s serviced and industrial-zoned land is undeveloped.
Demand from transport & logistics, e-commerce, and manufacturing occupiers is far outstripping supply, with over 40% of the new industrial development supply due to be delivered in 2025 and 2026 having already been pre-committed.
CBRE’s report highlights that Sydney has an industrial & logistics vacancy rate of just 2.1% – one of the tightest of any city globally.
CSR’s proposed sale is the latest industrial offering, complimenting two recent listings in Brisbane and Melbourne.
ASX-listed explosive and fertilisers group Incitec Pivot Limited is selling its Gibson Island site at Murarrie in Brisbane, which is expected to fetch more than $250 million.
Meanwhile Australian Property Journal reported that diversified property group Sandhurst Retail & Logistics is looking to offload the O’Herns Logistics Park in Melbourne’s northern suburb of Epping, which is tipped to sell for around $350 million.
The three offerings give investors an opportunity to scale up their industrial development pipeline and capitalise on the lack of supply across the country.
Despite some 2.3 million sqm of warehouses currently under construction across the country, Australia’s industrial market is set to remain severely undersupplied in the coming years.
Australia is forecast to run out of industrial land by 2029, according to Cushman & Wakefield.