Mirvac has finalised the acquisition of the first parcel of 54ha of land forming part of the Elizabeth Enterprise Estate in Badgery’s Creek.
The Group has paid $70.5m for the site which will likely yield 155,000sqm of logistics and warehousing space.
Forming part of a larger 254ha parcel under control by Mirvac, the first stage is located in a key location on Elizabeth Drive, approximately 800m to the east of the Western Sydney International Airport.
Mirvac submitted a Concept Master Plan in May 2021 for the 54ha parcel along with a Stage 1 Development Plan seeking approval for nine industrial buildings serviced by an internal road network. Mirvac are currently preparing the Environmental Impact Statement to support the application.
The site, along with Mirvac’s nearby Aspect Industrial Estate and the Auburn Switchyards Project, will be the focus of Mirvac’s Warehouse & Logistics $2.0bn development pipeline.
Mirvac secured the land over 5 years ago at a price equal to $130/sqm, un-zoned and un-serviced. Other recent sales show values have increased significantly in recent years. In September 2021, the Western Parklands Authority acquired 115ha of land in Bringelly for $322m ($280/sqm) whilst smaller un-serviced 2.0ha lots average $340/sqm – $420/sqm
Whilst Mirvac are not intending to sell serviced lots, the value of serviced lots has also increased significantly in recent years, with 1–5-hectare lot land values in Western Sydney at the start of the year averaged at $806 per sqm, up 6% over the previous year.
Higher land prices and higher construction costs are expected to lead to higher rents being demanded by developers in the precinct. A recent article by TMX Global explains the rationale for higher rents.