Frasers Property Industrial, seizing upon a shortage of industrial land on the eastern seaboard, has further expanded its western Sydney footprint with the acquisition of a 73.4ha parcel at Kemps Creek.
The strategically located parcel will add nearly half-a-million square metres of state-of-the-art warehouse, distribution centre and freight transport across one 63.28-ha parcel and a second 10.12-ha lot nearby.
It’s Frasers’ second land acquisition in Kemps Creek and signals the ongoing growth of the specialist’s Australian portfolio, at a time when industry leaders are warning of chronic undersupply in the sector.
Reports this week quoted Frasers executive general manager Ian Barter as saying of their $5.5-billion local portfolio: “We’d be disappointed if we didn’t double that in four to five years’ time.”
Asked about those targets, a Frasers’ spokesperson told The Urban Developer they would concentrate on developing their strategic land bank of about 2.3 million square metres over the next four to five years.
“Frasers will complete the 15 projects it has under construction, and they will contribute towards that,” the spokesperson said.
In prepared comments, Barter said the decision to expand its landbank in Kemps Creek was supported by the significant leasing inquiries and ongoing success of their first acquisition in the area.
Two years ago, Frasers and the Altis Real Estate Trust teamed up to develop 118ha of industrial land at the Mamre Road Precinct, about 40km west of central Sydney.
The joint venture broke ground on the logistics estate, known as the The Yards, in March last year. Like The Yards, Frasers latest acquisition is also expected to have an end value of more than $1 billion.
“A strong development pipeline in Australia shows that Frasers Property Industrial is well positioned to sustain the impressive growth witnessed in the past two years, which has seen the Australian platform grow to more A$5.5 billion of assets under management,” Barter said.
Frasers say their latest acquisition on Aldington Road in the Mamre Road precinct, is well-situated for the heavy vehicle accommodation needed for warehousing and distribution, with access to the Westlink M7 and only 45km from Sydney Airport.
“Frasers Property Industrial’s latest acquisition in Kemps Creek will grow our strategic landbank in Sydney’s west, where there has been a shortage of developable industrial land,” Martin said.
The shortage is such that the sector has warned Australia needs at least twice as much industrial floor space as it is building, if it is to keep up with growing demand.
CBRE’s head of industrial and logistics in the Pacific Sass J-Baleh told The Urban Developer in June there was a chronic undersupply in the industrial rental market and that it was likely to continue for at least three years.
J-Baleh said at the time the supply of industrial development remained low, with a national average of about 1.5 million square metres. Historically, the biggest undersupply was in Sydney, she said.
Frasers Property Limited—the Singapore-listed multinational real estate and property management company—had assets worth about $44 billion under management as of March this year. Frasers Property Industrial, the global giant’s industrial specialist, owns and manages industrial and logistics assets in Australia and Europe.
