GPT have sunk over $100m its future industrial land holdings in Kemps Creek, west of Sydney, as its finalises its concept masterplan and access issues.
Last week, the Group settled on its latest land holding, a 23ha parcel at 754 Mamre Rd for $74.6m ($324/sqm) which follows its first parcel of 10ha parcel which settled in October 2020 for $33.6m.
GPT are competing in the precinct with Mirvac (55ha), Frasers/Altis (119ha), ESR (45ha) and ISPT (52ha). The combined parcels are likely to deliver over 1,000,000sqm of logistics warehouse space over the next 10 years and account for about 40% of the total Kemps Creek industrial land precinct. Anchoring the precinct will be the Western Sydney Intermodal Terminal which will ultimately form part of the freight rail network linking Western Sydney to Port Botany and west to the Inland rail.
GPT lodged a planning proposal in October 2020 via a State Significant Development application process seeking consent for a concept masterplan detailing development across the estate as well as detailed development consent for the first stage of works on the site. The Department of Planning has received feedback from 13 different authorities involved in the development process on the site and GPT are now in the final stages of preparing the Environmental Impact Statement which is scheduled for Exhibition in the 3rd Quarter of 2021. The Concept Masterplan provides for the development of 5 warehouse facilities totalling 150,000sqm.
A proposed dedicated Freight Network road corridor is proposed to run south from the Intermodal terminal along the northern and western boundaries of the GPT site. This corridor is intended to allow for specialised transport vehicles (potentially autonomous) to move container freight direct to warehouses along the corridor.
Critical to the success of GPTs proposal will be the temporary and permanent access arrangements to Mamre Rd. The Mamre Rd Precinct Wide Development Control Plan (which is also awaiting completion by the Department of Planning) does not provide for direct connection points to Mamre Rd, instead, GPT will need to rely upon ultimate access through Mirvac’s site to the south. Whilst GPT and Mirvac are co-ordinating design outcomes between themselves, we would have to assume that the staging and delivery of Mirvac’s estate may not be to GPTs preferred timetable. GPT’s draft Master plan shows a temporary access to Mamre Rd, and whilst this may suitable for construction access, Penrith City Council do not currently support this approach as a permanent solution. GPT have indicated that they do not expect access will impact the timing of development of the site.
Whilst GPT enjoyed success in the speculative development of its warehouse facilities in Glendenning and in Truganina, the Group’s ambitions for Mamre Rd could be slowed down by further delays in planning, access arrangements and other infrastructure improvements to the precinct.
Further Information
GPT’s move to acquire this land without suitable access arrangements increases the risk of delay for the development and potentially could put GPT at the mercy of Mirvac. The competing sites all sit on parcels of land which have identified connection points to Mamre Rd or to secondary roads.
Whilst GPT’s parcel is smaller than Frasers/Altis, they have paid well above the prices paid by other landholders. Frasers have settled on all of its 119ha with an average acquisition price $249/sqm vs GPTs average acquisition price of $324/sqm. Mirvac have not yet settled on their parcel of land.
We have asked GPT to comment on the project, but they are yet to respond.
Attached below are some of the planning documents referred to above;
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