Australia’s biggest developer of industrial property has filed fresh plans for the fourth precinct on its giant 421-ha Oakdale Industrial Estate, 40km due west of downtown Sydney.
The Goodman Group is seeking to build two warehouse and distribution centres with a total gross floor area of 36,820sq m on land it owns in Cuprum Close, in Kemps Creek with partner and building materials manufacturer Brickworks.
The two sheds—one of about 30,000sq m and the other 5200sq m—will include offices, carparking for a total of 164 vehicles and 26 loading docks. More than 200 native trees will be planted to mitigate the potential heat from the hardstand areas. And charging facilities will be provided for up to eight electric cars at a time.
Goodman and Brickworks won approval in September, 2019 from the-then Department of Planning, Industry and Environment for the first stage of the state significant development, which included permits for earthworks and other infrastructure, as well as construction of the first three warehouses. The first stage has been completed.
That concept plan approval has since had 11 modifications as the various precincts come on line, including changes to sewer servicing, height control, internal road layout, and some minor changes to car parking and hardstands.
Oakdale West becomes one of the biggest parcels of industrial-zoned land in the sought-after Western Sydney region and will create more than 1800 jobs when completed. That will be done over five stages.
Thus far, the Department of Planning and Environment has approved five warehouses, with two of them are already operational and three more still under construction.
Another two more warehouses—approved by Penrith City Council—are now complete. Development applications for a further six have been lodged and are still waiting assessment.
Goodman says the completed sheds have attracted tenants from the e-commerce, third party logistics, retail, pharmaceutical and the automotive industry. They include Amazon, Australia Post, Telstra, Kazoo, Woolworths and the US water technology provider Xylem.
It is understood this latest proposal—which has estimated construction costs of about $56 million—will see the two sheds built speculatively. Keylan Consulting acknowledged as much in documents lodged with Penrith council.
“As the applicant has not secured specific tenants at this stage, the approval being sought is for 24/7 general warehousing and distribution use,” Keylan wrote.
Increasingly, industrial developers are opting to build speculatively, safe in the knowledge Australia currently boasts the lowest industrial vacancy rates in the World.
CBRE research shows only about 35 per cent of Australia’s supply pipeline is speculative development, compared to other markets, such as the US, where more than 50 per cent is speculative.
At just 0.2 per cent, Sydney had the lowest vacancy rate of any major city in the world according to CBRE, followed closely by Perth on 0.4 per cent.
Last month, Goodman lodged plans for another big last-mile logistics complex, also west of the centre of Sydney.
In that filing Goodman is seeking to build three warehouses with 10 warehouse units on a prime 7.1-ha property it acquired from BP Australia in June 2021, paying $40.2 million according to onload records.
Castrol has been leasing back those facilities for the past two years.
