One of Australian property’s biggest players has teamed with a Hong-Kong-based private equity real estate group for a logistics precinct in Sydney’s west.
As demand for prime industrial and logistics space continues to skyrocket, Lendlease and Phoenix Property Investors announced their joint venture to develop the 30ha site at St Marys, 45km from the CBD.
With an end development value of around $185 million, the proposed precinct at 75–103 Links Road is, according to the partners, “a strategic location for future industrial development that provides flexibility to develop large or small-scale logistics facilities to meet market demand”.
“Its location will provide occupiers with excellent transport connectivity, servicing greater Sydney and key interstate transport routes.”
Sydney’s industrial and logistics market is now the tightest in Australia, with the vacancy rate sitting at 1.40 per cent after halving over a six-month period according to CBRE data.
The agreement will give Phoenix a majority interest in the joint venture, with Lendlease acting as development and investment manager.
A masterplan for the precinct is due to be submitted this year.
“There are strong investment opportunities in western Sydney for companies in manufacturing, transport and logistics industries, and the new precinct is expected to meet continued growth in the industrial sector given renewed focus on supply chain resilience,” a spokesperson said.
Lendlease managing director development Tom Mackellar said the establishment of the joint venture with Phoenix supported its investments-led strategy and “is another example of partnering with capital early to optimise the right development and investment opportunities”.
“The proposed St Marys precinct will meet demand and growth in the industrial and logistics sector, and we look forward to working with our new partner Phoenix, along with government stakeholders to create a new masterplan and development agreement for staged development of this strategic site.”
