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Dexus buys industrial site for $123 million

One of the last remaining industrial sites in Western Sydney has been snapped up as Colliers’ research predicts vacant industrial zoned land in Western Sydney will have run out in less than five years.

Dexus purchased the 30 hectares of vacant land within the Mamre Road Precinct in Kemps Creek.

The off-market deal was negotiated by Colliers’ David Hall, Fab Dalfonso, Phillip Bradac and Jock Tyson.

“The significant 30-hectare property comprises three lots, delivering the opportunity for a strong development pipeline. 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” david Hall says. “Given the heightened shortage of industrial zoned land stock in Western Sydney, this is a strategic purchase on behalf of Dexus.”

Colliers’ estimates that the current supply of appropriately zoned vacant industrial land in Western Sydney will run out in approximately 4.8 years, based on take-up levels of 200 hectares per annum, against the vacant land supply of active landowners of 962 hectares.

The site will come to market at a crucial time in the outer west market with current vacancy levels below 0.5% and over 1,200,000 sqm of current occupier demand.

Chris Mackenzie, Head of Industrial Development Dexus, says Kemps Creek provides an opportunity for us to grow our industrial footprint and customer base in a key market.

“In a competitive market, we are focused on the locations that customers will value in the future,” Chris says.

“Kemps Creek provides an opportunity for us to grow our industrial footprint and customer base in a key market,” Chris Mackenzie, Head of Industrial Development Dexus, says.

“In a competitive market, we are focused on the locations that customers will value in the future.”

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 including local roads, drainage and open spaces.

For more information on Colliers, click here.

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