ESR has settled on the first 21ha of land at the ESR Kemps Creek Logistics Park in Sydney’s newest industrial precinct of Mamre Road.
ESR has paid $49m for the site at 59 Abbots Rd where it will develop up to 160,000sqm of Prime Logistics space across a 30ha master planned estate with an end value in excess of $400m.
The purchase price represents $228/sqm for what is effectively unserviced and but zoned land.
Other recent sales in Kemps Creek have varied from $198/sqm to as high as $462/sqm with Mirvac, Frasers, GPT and Dexus all acquiring large parcels in the few years.
ESR’s Westlink will be one of the closest industrial & logistics developments in Kemps Creek to the new M12 freeway linking the Western Sydney Airport to the M7 and beyond.
Construction of the new industrial estate at the site is proposed to cover 7 lots offering a total gross leasable area of 158,185m2, across 7 warehousing , comprising:
- 151,935m2 of warehousing floorspace; and
- 6,250m2 of ancillary office floorspace;
The plans for the project are still awaiting final assessment by the Department of Planning following the initial lodgement in August 2020 and Exhibition in June 2021 but are expected to be approved.
Overall land availability for industrial development remains highly constrained in Sydney, pushing prices higher and prompting the release of new industrial lands in recent years in Sydney’s West, including the Mamre Road Precinct.
The site was secured by ESR just as amendments to include the Mamre Road precinct was included in the Western Sydney Employment Area (gazetted on 12 June 2020) which extended the controls of the SEPP and rezoned the Mamre Rd Precinct for General Industrial purposes (IN1)
According to the NSW Government Employment Lands Development Monitor, as at January 2020 there were 12,188 hectares of industrial zoned land and 2,714 hectares of B5, B6, and B7 zoned land in Greater Sydney. Of this total zoned employment land, 3,154 hectares of was undeveloped. In the year to January 2020, there was no additional zoned land added through rezoning in employment land precincts across Greater Sydney, however, in June 2020, approximately 850 hectares of land in the Mamre Road precinct was rezoned for industrial uses. In addition to existing zoned employment lands, there were 6,529 hectares of potential future employment lands as at January 2020, with most of these in the South West Growth Centre structure plan and The Metropolis of Three Cities and District plans.
Take-up of employment land for industrial development was 140 hectares in 2019. This compares with 146 hectares in 2018 and 140 hectares in 2017. More recent figures are not yet available. Most of the land take-up (86% or 121 hectares) occurred in Western Sydney.
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