This article is from the Australian Property Journal archive
SINGAPOREAN-based FRASERS Property Industrial and Altis have purchased a 118 hectares site in western Sydney, joining a buying frenzy over the past week which has seen investors from the Lion City spend over $1 billion on Australian logistics.
Located in the Mamre Road Precinct, Kemps Creek, the new estate will accommodate up to 400,000 sqm of logistics and industrial facilities with an expected end value in excess of $1 billion when fully completed.
It is believed the JV partners paid over $300 million for the 649-763 Mamre Rd Kemps Creek property, located within the Western Sydney Employment Area (WSEA), which when fully developed will deliver approximately 850ha of industrial land and is anticipated to create approximately 5,200 construction jobs and accommodate in excess of 17,000 full time positions.
WSEA is a major area for logistics and warehousing operations due to its proximity to Sydney’s major road networks including the M7 and M4 motorways. Mamre Road Precinct will have direct access to the Southern Link Road, M9 and M12 linking with major motorways and the Sydney Metropolitan area.
This area is set to significantly benefit from the NSW and Federal Government’s Western Sydney Infrastructure Plan, encompassing Western Sydney International Airport, which is set to inject up to $3.6 billion to provide new and upgraded road systems to support future growth demands in the area.
Frasers Property Industrial general manager northern region Ian Barter said the JV identified Mamre Road Precinct a number of years ago as the next frontier for industrial development in Sydney.
“Its strategic location between the traditional industrial areas of Eastern Creek and Erskine Park and the emerging Western Sydney International Airport precinct made it an ideal region to expand in,” he said.
Barter said the critical nature of the industrial and logistics sector has been highlighted during the COVID 19 period.
“Logistics precincts have become the heartbeat of our cities. This site alone will provide welcome supply for the market and help satisfy the significant pent up demand from a number of organisations who have been looking to expand their presence in Western Sydney, but have been hampered by the lack of large greenfield opportunities available.
“The industrial sector continues to go from strength to strength and this development will provide a huge boost to economic activity within the region and serve as a critical employment hub for Western Sydney. Over 1,150 construction jobs will be created and more than 2,000 operational jobs when completed,” he added.
Altis’ Shaun Hannah said this acquisition will build on the recent success of the neighbouring First Estate development and highlights Aware Super’s commitment to the area.
“We see enormous potential in western Sydney and are looking to set a benchmark for industrial estates in the country from building design, functionality and sustainability to the environment created for staff and the wider community.” Hannah said.
This transactions highlights the ongoing demand for industrial assets during COVID-19 and comes hot on the heels of Singapore’s ARA Logos Logistics Trust acquiring five facilities for almost $420 million as well as acquire interests in five properties for $185 million.
Last week Mapletree Logistics Trust and ESR snapped up respective Acacia Ridge properties in Brisbane from Blackstone, worth over $200 million.
Recent Cushman & Wakefield research shows industrial transactions have outpaced offices for the first time in almost 10 years. So far this year, notable industrial transactions include:
- CSR sold its Horsley Park facility for $84.3 million; Hastings Deering sold an industrial developmentland in Brisbane for $41.5 million, and Qube Holdings is in talk to sell its Moorebank Logistics Park for $2 billion;
- Dexus’ sale of six assets into its joint venture vehicle with GIC, the Dexus Australia Logistics Trust, for $270 million, and Charter Hall’s acquisition of the OIA Glass portfolio for $214.6 millionand the automotive logistics park in Minto from Qube for $207 million;
- Charter Hall also acquired four ALDI logistics properties in partnership with Allianz for $648 million, as well as the Winc national distribution centre in Erskine Park for $115 million;
- In August active player Logos paid $50 million for the former Woolworthsdistribution centre in Melbourne; acquired an Epping logistics asset with an end value of $70 million, and bought distribution centres in Sydney and Logan City for $172 million from healthcare company Sigma, with the backing of the New South Wales government’s financial management and investment arm, TCorp;
- In the same month Centuria Industrial REIT snapped up Telstra’s data centre complex in south east Melbourne for $416.7 million;
- Global real estate investment manager DWS picked up a 50% stake in a Coorparoo chilled warehouse facilityfor a cool $152.5 million last month, while Singapore’s Mapletree Logistics Trust paid $21.25 million for a newly built warehouse leased to Decina Bathroomware in Inala.
