Frasers Property Group have acquired a 7ha parcel of land on the Horsley Drive, Horsley Park for $18m.
The property is currently the home of Sharks Golf Driving Range at 1634 – 1637 The Horsley Drive and currently zoned Rural however it sits within an Urban Investigation Area known as the Keyhole lands which has the potential to become future employment land.
Under the current planning controls this area is restricted to a minimum subdivision size of 10 hectares and permits a range of agricultural activities (including farming and market gardens) as well as a restricted range of commercial activities. The redevelopment potential of this area has been constrained due to the lack services and facilities (particularly sewer), undulating terrain and its proximity to the green wedge known as the Western Sydney Parklands. Previously Council has made submissions to the Western Sydney Parklands Trust that the area be identified for acquisition and incorporation into the Western Sydney Parklands, however that did not occur.
In 2017, the property was considered for urban uses and a series of development plans issued for public consultation. In early 2019, the Fairfield City Council endorsed a preferred structure plan which identified the site as suitable for employment purposes. The proposal has now been enveloped by processes in the Greater Sydney Commission.
Frasers exchanged contracts on the land in November 2019 and settled in June 2020. Even if rezoned, the site has limited development potential as a result of potential road widening, riparian & flooding zones and transmission easements reducing the developable area to approx 4.5ha. On this basis, the purchase price represents almost $400/sqm which compares to $700/sqm which ESR paid for the CSR site in Horsley Park and $630/sqm for a neighbouring CSR site also acquired by Frasers, both in 2019.
Frasers are yet to make announcements in relation to this acquisition. Clearly the rezoning risks have reduced the price Frasers were prepared to pay for the new property.
The Group have recently completed the 26ha Horsley Drive Business Park further along The Horsley Drive at the corner of Cowpasture Rd. That project is now fully occupied by eight companies operating across five buildings include specialists in hi-tech manufacturing, chilled food distribution, homewares manufacturing and distribution and advanced logistics.
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