Property

Green light for Mirvac estate

MIRVAC has been given the green light for its circa $700M Kemps Creek industrial estate in Western Sydney’s Mamre Road precinct.

The 56-hectare Aspect Industrial Estate is set to become Mirvac’s fi rst embodied carbon neutral industrial development, as well as the fi rst approved site under the new planning regime for the Mamre Road precinct.

Mirvac announced the approval of its State Signifi cant Development Application (SSDA) with minister for Western Sydney, Stuart Ayres, MP.

The estate will comprise around 247,000sqm of warehousing and offi ce space, built with an emphasis on fl exibility, functionality and sustainability, targeting a minimum 5 Star Green Star rating.

“Aspect will be Mirvac’s fi rst carbon neutral (embodied carbon) industrial development, and will feature leading sustainability features such as rooftop solar systems, translucent roof sheeting, LED lighting, rainwater harvesting and smart metering,” said Campbell Hanan, head of integrated investment portfolio at Mirvac.

The development is expected to become a leading employment hub for Western Sydney, delivering more than 500 jobs throughout the construction phase and 1,200 operational jobs over the course of development.

The facility is currently 63% preleased with future tenants currently including CEVA Logistics, Lineage and Winning Group.

“We continue to leverage our asset creation capability to deliver highly functional facilities with superior sustainability features and low operating costs that resonate with the current and future needs of our customers,” said Susan Lloyd-Hurwitz, CEO and Managing director at Mirvac.

The new estate sits within proximity of the new Western Sydney International Airport, placed within 10 minutes of the M7 Motorway, 20km from Penrith and within an hour’s drive of both the Parramatta and Sydney CBD.

“We are actively advancing our $2.3B industrial development pipeline which is 100% weighted to prime Sydney locations, set to benefi t from committed infrastructure projects like the Western Sydney International (Nancy-Bird Walton) Airport at Badgerys Creek,” said Lloyd-Hurwitz.

“From this strategic location, Aspect will provide access to approximately 4.3 million people within a 60-minute drive, enabling us to cater to growing e-commerce demand together with wide scale supply chain investment as our customers seek to establish more effi cient logistics solutions for their businesses, such as automation, supported by world-leading technology.”

Construction at Aspect Industrial Estate in Kemps Creek is set to commence in the coming weeks.

Mirvac recently reaffi rmed its guidance for growth in FY22, with an operating EPS guidance of at least 15.0cpss, or an increase of at least 7.1% in earnings and a distribution guidance of 10.2cpss, for a DPS growth of 3%.

Artist impression of the project.

Former Bonds factory to fetch $13M

AROUND $130M is expected for the western Sydney former headquarters of the famous Bonds Industries, which could make way for a mixed-use development with 1,500 apartments.

Spanning nearly eight hectares nearly 30 kilometres from of the CBD, 190-220 Dunmore Street in Pendle Hill, is has part R4 high-density residential zoning, part B2 local centre and part RE1 public recreation zoning, with height limits ranging from 12.5 metres up to 39 metres across the property.

Current plans would allow for adaptive reuse of heritage buildings for up to 6,000 sqm of retail, local services, medical, supermarket, community and indoor recreational uses. About 25,000 sqm of space can be used on a public plaza and parks, and 8,000 sqm on common space.

George Bond established Bonds Industries on the site in 1923, which was the fi rst cotton spinning and weaving operation in Australia and possible the southern hemisphere.

Colliers’ Frank Oliveri and Guillaume Volz have exclusive listing, nine years after Olivieri sold the property, and fi ve years since the owner, developer Dyldam, secured rezoning.

“Very rarely do you come across an eight-hectare, R4-high density residential development site in a fully built-up area within walking distance to two railway stations,” Oliveri said, who touted the site as potentially the “largest unit development site to come up in the western Sydney market for many years”.

Volz said that traditionally there has existed a 10 to 15% gap between new build multi-units and established units, but as owner-occupiers have become the predominant buyer, that gap has narrowed to parity in the last year.

Record low commencement

“We believe that record low commencements will be felt in the market and as new generation off -the-plan properties become available and buyers value the benefi ts they off er, particularly in master-planned communities, developers will be able to achieve higher pricing from new developments.”

A large shortage of supply in build-tosell (BTS) apartments is set to hit Sydney over the next few years, according to Charter Keck Cramer, while fi rst home buyer support schemes and aff ordability issues are pushing unit buyers and renters further out.

“As housing aff ordability is paramount, this development is expected to have strong demand from fi rst-home buyers and those who want an aff ordable unit close to rail, shopping and within proximity of the Parramatta CBD,” Olivieri said.

The site is 850 metres from Pendle Hill station and 1.5 kilometres from Wentworthville station and on a high point in the local topography.

Volz said cyclical and structural changes will support the next cycle of BTS apartment projects as well as the emergence of the build-to-rent sector, including the acceptance of family living in apartments, increased detached dwelling aff ordability constraints, rapidly rising rents and the return of overseas migration.

He said The availability of limited development sites in inner Sydney has also seen BTR developers appreciate the value off ered by western Sydney, particularly in land values.

“Coupled with 15% growth in Sydney wide rents in the last 12 months, and further increases to come over the next 12 to 18 months as migration levels improve and low levels of new supply impact rental options, the metrics are now favourable to support the BTR sector in Sydney.”

Expressions of interest closed June 22.

The Bonds site.

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