Kemps Creek land parcels sell for $85m in Hot Market

22 April 2022

Frasers and Fife have extended their land holdings in Kemps Creek each acquiring 10 hectare lots in Aldington Rd in recent weeks.

Parcels of land in the Mamre Rd Precinct in Western Sydney have been fiercely contested over the past 3 years with pricing rising from $250/sqm in 2019/20 to well over $450sqm in 2022 as planning certainty improves and each of the major industrial developers seek to control more of the land across the precinct. Premium Members can view our Mamre Rd land owners map below.

In one of two deals completed in recent weeks, Fife Property Group have settled on the acquisition of 126 Aldington Rd for $37.2m ($368/sqm). The site forms part of a Stockland / Fife co-ordinated development of 72 hectares on the eastern side of Aldington Rd (see below).

The second deal, which settled in early April, was the acquisition by Frasers of 235 Aldington Rd for $48.6m ($479/sqm). This site forms part of a larger 63ha landholding on the western side of Aldington Rd. Contracts for the site were exchanged back in July 2021.

There are few sites left in the precinct that are not under the control of the major developers already, however some original land holders are hoping for top dollar.

In October 2021, Knight Frank were marketing the sale of 244-270 Aldington Road. The 20ha site is located adjacent to the ESR WestLink Project and just south of the Stockland / Fife project. We understand that terms are agreed, however agents are tight lipped about the deal which is likely to be exceed $90m.

The process for seeking development approvals projects has always been challenging in Sydney and major precincts such as the Mamre Rd precinct face additional complexities due to the significant infrastructure works that are required to support large scale industrial precincts.

In October 2020, the Fife / Stockland JV lodged a State Significant Development Application for a concept masterplan across their 72 hectares providing 374,630 sqm of Industrial & Logistics facilities across 13 separate buildings (see below). The proposal was Exhibited in late 2020 and is still being “assessed”. We expected that the significant issues surrounding the location of and funding for roads & infrastructure as well as the application of the Special Infrastructure Contribution Levy are part of the “assessment” process.

State Governments have increasingly pushed the responsibility for the infrastructure on to Developers however without a co-ordinated approach, early movers tend to be disadvantaged in the process.

The major landholders in the Kemps Creek precinct including; Altis, Frasers, GPT, Mirvac, Dexus, Stockland and Fife formed the Mamre Road Precinct Landowner Group in 2019 to proactively work with the State government and Council to facilitate a successful employment precinct.

These Groups either owns or has land interests over approximately 47% of the precinct and will be the catalyst for initial industrial development and associated enabling infrastructure in the precinct.

The group helped the State Government formulate the final Mamre Rd Precinct Development Control Plan with collective feedback on issues raised in earlier versions. The final plan came into force in November 2021 and will now be the catalyst for development across the region.

Kemps Creek Landowner Map

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