Industrial land supply is constraining development in Sydney as Hannas Group puts forward $75 million plans for the last piece of vacant land at Lane Cove.
Over the next five years it was estimated that just under 2000 hectares of developable industrial land would be delivered across up to 350 sites in Western Sydney according to Colliers national director of industrial David Hall.
Hall, who will be speaking at The Urban Developer’s Industrial and Logistics vSummit next week, said the Mamre Road Precinct had unlocked the development potential of Greater Sydney, but estimated there was about five years’ worth of developable industrial land.
Hannas Group chief operating officer Charlie Martin said the diversified group had acquired the Lane Cove site in January this year as part of a growth acquisition phase for their industrial portfolio. a
A development application is with the Lane Cove Municipal Council for a $75 million three-storey development at 16 Orion Road.
Martin said it was the latest foray into the industrial sector for the privately-owned Sydney development and civil infrastructure company.
“We have an aggressive growth plan and we see industrial as a big part of that,” he said.
“This is not the traditional shed, it’s architecturally-designed and aesthetically pleasing.”
Martin said the development would be unique in the “booming area”, offering 51 premium self-storage units and 48 industrial units.
“Each storey will have its own street access… it’s quite functional and easily accessible,” he said.
“Natural light was another focus, our mezzanines are going to be quite spectacular.”
Martin said Arc Lane Cove offered an ideal location in close proximity to apartment-dwellers who would need more space for boats and cars, while it also would offer close proximity to the CBD and outer suburbs for industrial and logistics businesses.
“People want to maintain a work life balance and a level of amenity between home and the office,” Martin said.
“There’s been a strong surge in residential development for apartments in this area, and space is limited.
“We also have a strong program of acquisition in Greater Brisbane … we’ve broadened our horizons due to the lack of vacant land in Sydney.
Colliers associate director John Carney said land supply constraints and a booming e-commerce industry had driven up demand for industrial space in Sydney.
“Due to the restricted supply of industrial land on Sydney’s lower North Shore we are finding increased demand from commercial and industrial businesses to secure suitable space,” he said.
“Arc Lane Cove will provide an opportunity for these businesses while giving investors an opportunity to secure a foothold in this tightly held market.”
Hannas chief executive Danny Hanna said the units had been launched to market and could be bought off the plan.
“We are proud to launch Arc Lane Cove, one of the first multi-storey, architecturally designed estates in this market delivering premium-grade space,” Hanna said.
“We have seen a strong demand from businesses and individuals for a greater focus on lifestyle, convenience and amenity when it comes to their workplaces.”
Subject to approval, the SBA Architect-designed three-storey development would comprise 11,028sq m of space, with units ranging in size from 21sq m to 347 sq m.
CBRE director Peter Mangraviti said the striking design, curved glass facade and polished concrete floors were a “new benchmark” for the North Shore.
Arc Lane Cove is expected to be completed by November 2022.