Mirvac has secured development approval for a $250 million logistics hub in western Sydney, spurred by online sales trends in the wake of coronavirus confinement measures.
The ASX-listed developer won approval from Cumberland Council to develop the 14-hectare site at 300 Manchester Road, Auburn, into an industrial estate and employment precinct that blends flexible warehousing and office space.
Mirvac will undertake the 73,000sq m project in a joint venture with an investment vehicle sponsored by Morgan Stanley Real Estate Investing, with whom it purchased the site in 2019 from property group Payce for $94.2 million.
Construction is slated to start in the 2021 financial year.
Mirvac said that the site, located 3.3km from Parramatta CBD and 18km from Sydney's CBD will cater to the surge in online shopping and the growing need for last mile delivery locations.
Mirvac industrial general manager Richard Seddon said that the vision was to deliver a precinct that represents a new age for industrial estates.
"Our plans include bringing leading technology together with unique amenity for future workers and the local community.”
Seddon points to growing e-commerce trends, with more people staying at home, driving the need for new logistics hubs, with recent research from Nielsen showing a 45 per cent growth in online sales in Australia when compared to the same time last year—which is likely to enhance consumer adoption of buying online.
“With more people staying at home, there has been a rapid increase in demand for e-commerce services.
"To meet future needs we are committed to delivering cutting-edge industrial warehouses and logistics facilities like the one planned for Auburn.”
Only last month, the ASX-listed diversified developer withdrew the 3-4 per cent earnings per share growth and 5 per cent dividend-per-share growth it restated when announcing its half-year earnings.
Yet Mirvac continues to push ahead new projects amid the economic uncertainty surrounding Covid-19, also lodging plans for a 143-apartment tower in central Brisbane.
“Against the current climate, Mirvac has adapted its operations and is progressing development plans and construction across its portfolio," Seddon said.
"Continuing momentum on our developments ensures we are well placed to help support the recovery of Australia’s economy on the other side of Covid-19."