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A global real estate investment management firm and a superannuation fund have broken ground on a large-scale logistics and industrial estate in New South Wales.
The $400-million logistics and industrial estate at 884-926 Mamre Road, Kemps Creek, is the latest project for long-time partners Barings and Rest Super.
The 20ha site of the Access Logistics Park is in Sydney’s south-west industrial corridor and was bought by the joint-venture partners in April.
Comprising six buildings with a gross lettable area of 90,000sq m, the site is also within the Greater Mamre Road Precinct and the Western Sydney Employment Area.
The site has 400m of frontage to Mamre Road and is connected to the M7, M4 and the M12 motorways.
It is also close to the Western Sydney Intermodal Terminal, 5km from the Western Sydney Airport at Badgerys Creek and the Aerotropolis, and is 30 minutes from Parramatta City by road.
The proximity to Aerotropolis was key, according to Barings project director Stephen O’Connor.
“With continued strong demand for industrial and logistics space in and around the Aerotropolis ... the new Access Logistics Park will offer a range of flexible opportunities for international and domestic businesses looking to establish or expand their operations in ... Kemps Creek,” O’Connor said.
The masterplan for the site includes A-grade warehouse and logistics facilities. The project is aiming for a 6-star Green Star Rating.
The Kemps Creek site acquisition increased the Barings and Rest portofolio to about $1 billion.
The joint venture acquired its seed asset, two warehouses in Melbourne’s Truganina with 46,934 gross lettable area, in December, 2023 for $94 million.
It then acquired 12 assets and 17 tenants across 70ha and 340,000sq m of lettable area in Sydney and Melbourne from Goodman Group for $780 million in June, 2024.
The purchase was made off-market with Goodman Group intending to use the capital to fund a push into data centres.
Rest Super chief investment officer Andrew Lill said that there were trends driving the industrial market that justified the Mamre Road project.
“We firmly believe that deglobalisation is one such trend that is generating investment opportunities in industrial property with the onshoring and diversification of supply chains being key considerations for large industrial occupiers,” Lill said.
“Digitalisation and the growth of e-commerce is expected to drive industrial demand from a range of tenants.”
Construction work on the first warehouse will start in December with completion scheduled for 2025.
