Stockland today announced it has acquired a new 13.09 hectare parcel of land at Gregory Hills in south west Sydney for $47.13 million, as it continues to grow its workplace and logistics portfolio to greater than 25 percent of total assets.
Located on the border of the well-known Smeaton Grange industrial precinct and Gregory Hills bulky goods retail precinct, the site provides good connectivity with close proximity to M5 and M7 Motorways, part having exposure to Camden Valley Way, and benefits from growing infrastructure just 24 kilometres from the Western Sydney Airport site.
Stockland Group Executive and CEO Commercial Property, Louise Mason, said: “The acquisition is in line with our strategy to own, develop and manage high-quality properties strategically positioned in key locations for logistics, infrastructure and employment.
“Situated in Australia’s fastest growing Local Government Area (LGA), Camden, this new industrial estate will provide employment opportunities for the significant existing catchment of 343,000 people with over 30,000 homes scheduled to be built within 10km over the next decade, including 3,000 new homes at Stockland’s nearby Willowdale community.”
Stockland General Manager – Workplace and Logistics, Tony D’Addona, said: “The logistics market in Sydney’s south west continues to experience strong demand and limited supply, benefiting from unprecedented infrastructure boom to support growth.
“The acquisition of this south western Sydney site allows us to tap into this burgeoning local market and also benefit from the shortage of serviced land available to smaller and medium sized businesses looking to grow. We will look to provide land, turnkey and lease opportunities at a time when our Sydney portfolio is experiencing very high occupancy and market fundamentals are strong.”
Future occupants at the industrial estate will benefit from a high level of existing social infrastructure, including several residential communities such as Stockland’s Willowdale community located 10 minutes away, large day care centres, Gregory Hills Hotel, Soma Wellness, indoor leisure complexes and various food and beverage outlets and the soon to be completed Gregory Hills Town Centre.
Stockland is continuing to capitalise on the growing demand for logistics assets across the country, making good progress with its development pipeline having delivered ~$100 million of new projects over the past six months with a further $56 million of projects under construction and an additional development pipeline of over $740 million, targeting 6 -7 per cent FFO yields and centred on eastern seaboard capital cities.
The Gregory Hills acquisition quickly follows the recently announced 87ha development land acquisition at Melbourne Business Park and is zoned for industrial use with flexible development options. The project expected to commence in 2020, subject to approvals. Key site facts
- The Gregory Hills site lies within Australia’s fastest growing Local Government Area (LGA), Camden
- The site benefits from good infrastructure, including;
- close proximity to M5 and M7 Motorways, part having exposure to Camden Valley Way
- Narellan (3km), M5/Hume Motorway (7km), Campbelltown (10km), Macarthur Intermodal (13km), M7 Motorway (17km), Moorebank Intermodal (22km), Western Sydney Airport (24km) Parramatta CBD (37km), Sydney Airport (45km), Port Botany (52km), Sydney CBD (55km).