This article is from the Australian Property Journal archive
DEXUS is expanding its industrial footprint in the booming Western Sydney region, with three new industrial estates under development.
Dexus has just turned the first sod on 149 Orchard Road in Chester Hill, while construction is already underway at the Velociti estate at Moorebank and a further estate, to be known as Vertex, is set for development in Marsden Park.
In addition to the recently completed Circuit.7 in Glendenning, Dexus will deliver 117,000sqm of prime industrial GLA in the booming growth corridor of Western Sydney, at a construction value of circa $460 million.
The purpose-built Orchard Road estate will comprise four contemporary warehouses with adjoining mezzanine offices for a total of 24,100sqm GLA, with practical completion expected by mid-2025.
Orchard Road is owned by Dexus and Dexus Real Estate Partnership 1 (DREP1).
Velociti at 12 Church Road in Moorebank will be a late mile estate with circa 17,900sqm of GLA across six warehouses with inbuilt mezzanine offices and is forecast for completion in late-2024.
Velociti is owned by Dexus and Dexus Industria REIT (DXI).
Vertex at 311 South Street in Marsden Park is located in the Northwest Priority Growth Area and will comprise two build-to-lease warehouses with eight units across 47,200sqm, with construction set to commence this year and reach completion in Q3 2025.
Vertex is owned by Dexus Australian Logistics Trust.
“There is continued strong demand for high quality industrial product in Western Sydney as customers look for modern, efficient industrial space in desirable locations,” said Chris Mackenzie, executive general manager of industrial at Dexus. (LINK).
“Our investments in Western Sydney will offer customers facilities with flexible designs that meet their specific needs. To support customers’ sustainability journey, the designs will include our battery infrastructure initiative aimed at helping customers meet their energy efficiency and carbon emissions targets.”
The already strong Western Sydney market is supported by strong population growth and an investment boost into housing over the coming decades.
With demand for industrial space set to soar in Western Sydney and across Australia more broadly, with the increasing national population set to support demand for an additional circa 13,800,000sqm of industrial space across the country.
According to Colliers, there is around 2.5 million to 3 million sqm of active tenant demand across the east coast sub-markets, with 46% of supply for 2024 already committed as at mid-March.
Dexus and pension fund the CPP Investment Board recently sold 5 Martin Place in the Sydney CBD , with Dexus trading two more assets in 130 George Street Parramatta and 18 Motorway Circuit Ormeau.
