As it prepares to provide a market update next week, Mirvac is keen to show it has a number of shovel ready projects ready to kick off announcing today that it has secured Development Approval for a new logistics development in Auburn.
The 14-hectare site at 300 Manchester Road, Auburn, is set to become a state-of-the-art industrial estate as well as a vibrant employment precinct delivering premium facilities that blend flexible warehousing, office space and small-scale local amenities such as a local café totalling approximately 73,000 square metres of floor space.
Mirvac’s redevelopment of the site is a joint venture with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI). The joint venture acquired the site in June 2019 for $94.2M in June 2019 from developer Payce.
The project is planned to commence in FY21 and will provide over 700 construction jobs, 1,000 permanent jobs and contribute $269 million to the local economy.
Richard Seddon, General Manager, Industrial at Mirvac, said “At Auburn, our vision is to deliver a precinct that represents a new age for industrial estates. Our plans include bringing leading technology together with unique amenity for future workers and the local community.”
Seddon pointed to growing e-commerce trends driving the need for new logistics hubs with recent research from Nielsen showing a 45 per cent growth in online sales in Australia when compared to the same time last year which is likely to enhance consumer adoption of buying online.
“With more people staying at home, there has been a rapid increase in demand for e-commerce services. To meet future needs we are committed to delivering cutting-edge industrial warehouses and logistics facilities like the one planned for Auburn.”
“Against the current climate, Mirvac has adapted its operations and is progressing development plans and construction across its portfolio. Continuing momentum on our developments ensures we are well placed to help support the recovery of Australia’s economy on the other side of COVID-19.”
Located close to Auburn town centre, the site is 3.3 kilometres from Parramatta CBD and 18 kilometres from Sydney CBD. It is well placed to benefit from significant infrastructure investment including the $16.8 billion WestConnex project which will improve connections from the Inner West to the CBD, through to South Sydney and Port Botany, via a new underground M4-M5 link.
Mirvac is also investing in community infrastructure by upgrading the intersection of Chisholm and Manchester Road to accommodate traffic moving to and from the estate.
Mirvac also announced that it had submitted plans for the fourth tower in its 14,000sq m residential Waterfront Newstead precinct on the Brisbane River. The project provides 143 units in a 25-storey tower that will include one-, two- and three-bedroom apartments, as well as a handful of four-bedroom units.
Mirvac chief executive Susan Lloyd-Hurwitz told a Property Council webinar on Friday it was crucial for companies to get as many shovel-ready projects ready to go as they could.