Dexus splashes $123 million for 30ha Kemps Creek site
Property investment group Dexus has splashed over $120 million for a 30ha site near the new Western Sydney airport.
The Aldington Rd landholding in Kemps Creek is located 15 minutes from the airport and was one of the final opportunities of scale within the Mamre Road Precinct.
Dexus acquired the site with a $123 million off-market deal negotiated by Colliers’ David Hall, Fab Dalfonso, Phillip Bradac and Jock Tyson.
Mr Hall said the 30ha property comprised of three lots, which allowed for a number of development opportunities.
“The site will provide circa 150,000sqm of industrial space with Dexus already securing a pre-lease with McPhee Distribution Services for circa 72,000sqm” he said.
“Given the heightened shortage of industrial zoned land stock in Western Sydney, this is a strategic purchase on behalf of Dexus.”
The Mamre Road Precinct would provide temporary relief to the growing developer and occupier demand. Colliers’ estimates the current supply of zoned vacant industrial land in Western Sydney will run out in nearly five years.
This is based on take-up levels of 200ha per annum, against the vacant land supply of active landowners totalling 962 hectares.
Dexus head of industrial development Chris Mackenzie said the Kemps Creek landholding provided an opportunity for the company to grow their industrial footprint and customer base.
“In a competitive market, we are focused on the locations that customers will value in the future,” he said.
The Mamre Road Precinct is set to benefit from the NSW government’s commitment to $2.6 billion in funding to go towards the future development of the area and to deliver key infrastructure. This will include local roads, drainage and local open spaces.