Amazon tipped to move into western Sydney

An artist’s impression of Goodman facility at Oakdale West.
An artist’s impression of Goodman facility at Oakdale West.

A development in Sydney’s western suburbs mooted as the next major Amazon facility has won approval, with supermarket giant Coles already slated to move into the estate being developed by Goodman and Brickworks.

But all eyes are on the American e-commerce giant as it looks to expand its logistics empire, with a new distribution centre in Sydney’s western suburbs on the agenda.

The Oakdale West development has been tipped as its next destination, although the move is yet to be confirmed.

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Goodman and Brickworks on Thursday won approval to develop the estate in Kemps Creek. The overall concept plan has been backed and will see the entire Oakdale facility, including existing precincts, grow to an end value of $3 billion. The pair also won approval for the first stage of building works for complexes spanning 116,000sq m as well as initial infrastructure works.

Once complete, Oakdale West will be the largest parcel of industrial-approved land in western Sydney, bringing more than 1800 jobs to the area when complete, and putting the economic shift to logistics and e-commerce on display once the US group inks a deal.

Goodman and Brickworks will pour $95 million into infrastructure and the estate will be completed over five stages.

Goodman general manager Jason Little says consumers’ need for convenience and faster delivery is driving demand for industrial property, particularly in urban populations like Sydney. “As our customers’ look to increase efficiency in their supply chain, they are seeking high-quality facilities close to the consumer,” he says.

Oakdale West is near key motorways and the under-construction Western Sydney Airport. Approved for 89ha of development, Oakdale West is looking for more e-commerce, third-party logistics, retail, pharmaceutical and automotive tenants, with Coles slated to shift in 2023.

Amazon has been grabbing market share from traditional bricks-and-mortar retailers and is a key player in the development of new sites on the outskirts of major cities.

The company opened its second distribution centre, a 43,000sq m fulfilment centre — about the size of six football fields — at Moorebank, in Sydney’s southwest, last year. That centre at the Goodman Centenary Distribution Centre is nearly twice the size of the group’s Melbourne facility at Dandenong South.

NSW planning and public spaces minister Rob Stokes said Oakdale West was the newest development to be approved in the western Sydney employment area that will create more than 200,000 additional jobs over the next two decades.

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