Two industrial heavy-hitters are working on separate plans to develop deluxe warehouses in the Sydney region with more than half a billion dollars in play.
Super fund ISPT has filed concept plans for its Summit project at Kemps Creek, with an estimated construction cost of $323 million, while developer and manager Greystar has lodged plans for its pandemic-era site purchase—a warehouse or distribution centre at South Granville with a $189-million capital investment value.
The Summit concept masterplan from ISPT shows eight warehouses and a cafe for a 244,413sq m gross floor area at 706-752 Mamre Road, Kemps Creek, in the Penrith Local Government Area and 39km west of the Sydney CBD.
The plans went on exhibition last week.
Watson Young designed the scheme for the 52ha site that is in the Mamre Road industrial precinct near the under-development Aerotropolis.
It joins other industrial development in the precinct planned for the future Southern Link Road and neighbours GPT’s Yiribana Logistics Estate and Mirvac’s Aspect Industrial Estate.
Meanwhile, Greystar hopes to attract the likes of DHL, Australia Post or Toll for its site at 26 Ferndell Street, South Granville, and 464 Blaxcell Street, Guildford, about 23km west of central Sydney.
Watch This Space has designed three warehouse buildings and nine units, creating 31,000sq m of space across multiple levels on the 5ha site at the midpoint between Parramatta and Bankstown.
Although the Sydney industrial sector cycle is just starting to decline and property sales were slowing, rental vacancies and rates were still strong, according to a Herron Todd White report released in March 2024.
The valuation and advisory company’s commercial director, Angeline Mann, said the industrial market was just starting to slow with fewer transactions but the supply issue would remain.
“We forecast that rents are going to continue growing beyond 2024,” Mann said.
“Location is considered to be a prime factor in determining the demand and rate of rental growth.
“We are now starting to see yields increase as demand slows and values start to come back.
“It is possible that this may result in some investors returning to the industrial market but this could be hindered by weak economic conditions.”
