Mirvac secures approval for ~$700m Kemps Creek Industrial Estate - first Mamre Road precinct site approved

Together with the Hon. Stuart Ayres, MP, Minister for Western Sydney, Mirvac has announced approval of its State Significant Development Application (SSDA) for a 56 hectare logistics estate, known as Aspect Industrial Estate in Kemps Creek in Western Sydney, which is targeted to be Mirvac’s first carbon neutral (embodied carbon) industrial development.

With an estimated end value of over $700 million, Aspect is the first site to be approved under the new planning regime for the Mamre Road precinct that was rezoned for employment uses under the NSW Government’s Planning System Acceleration Program in 2020.

The new industrial estate will provide approximately 247,000 square metres of high-quality warehouse and office space with a focus on flexibility, functionality and sustainability, creating a market leading employment precinct for Western Sydney. It is forecast to provide over 500 jobs during construction, and 1,200 operational jobs over the course of its development.

Premium brands Lineage, CEVA Logistics and Winning Group have committed to Aspect, bringing the facility to 63% pre-leased with construction expected to begin in the coming weeks.

Mirvac Chief Executive Officer and Managing Director, Susan Lloyd-Hurwitz said Mirvac was well placed to cater to the growing demand for premium industrial space in Western Sydney.

“We are actively advancing our $2.3bn industrial development pipeline which is 100% weighted to prime Sydney locations, set to benefit from committed infrastructure projects like the Western Sydney International (Nancy-Bird Walton) Airport at Badgerys Creek. We continue to leverage our asset creation capability to deliver highly functional facilities with superior sustainability features and low operating costs that resonate with the current and future needs of our customers.

“From this strategic location, Aspect will provide access to approximately 4.3 million people within a 60-minute drive, enabling us to cater to growing e-commerce demand together with wide scale supply chain investment as our customers seek to establish more efficient logistics solutions for their businesses, such as automation, supported by world-leading technology, ” said Ms Lloyd-Hurwitz.

Minister Ayres said the $2.6 billion Mamre Road Precinct, one of 12 key precincts in the Western Sydney Aerotropolis, has unlocked 850 hectares of new industrial land and will also see the creation of new public spaces and conservation areas.

“The Precinct is a significant step forward in securing western Sydney’s future as a global hub for logistics and advanced manufacturing. It is providing opportunities for businesses such as Mirvac to invest in Western Sydney, enabling major warehousing, logistics, manufacturing and circular economy operations to be established. It will also bring a huge jobs boost to the region, creating opportunities for more than 11,000 jobs during the construction phase alone and 17,000 operational jobs once fully developed.

“The Mamre Road Precinct will also include 50 hectares of open space, including new cycling and walking paths that will open up previously inaccessible land to the public. A further 70 hectares of conservation land, including the Cumberland Plain Woodland, will also be protected within the Precinct.

“Not only does this rezoning secure much-needed productive industrial land, it also safeguards critical environmental areas and provides some fantastic new public spaces for the future residents of the Western Parkland City,” said Minister Ayres.

Campbell Hanan, Mirvac’s Head of Integrated Investment Portfolio said said Aspect is targeting a minimum 5 star Green Star rating and market-leading sustainability features.

“Aspect will be Mirvac’s first carbon neutral (embodied carbon) industrial development, and will feature leading sustainability features such as rooftop solar systems, translucent roof sheeting, LED lighting, rainwater harvesting and smart metering,” said Mr Hanan.

Michael Bunt, General Manager, Winnings Services, part of leading Australian retail entity Winning Group, said Aspect was a vital investment for the Winning Group, to enable the business to continue to grow and expand its range of products and services to support its customers and third party partners.

“The new 66,000 sqm distribution centre will be our largest in Australia and in our century-old history, helping to service our NSW customers, which makes up our largest market nationally.

“This DC allows for the continued and future growth of the Group, including our expansion into new big and bulky goods categories across our bricks and mortar and online retail businesses and our third party logistics capabilities, while also supporting our sustainability initiatives of the business. The site is ideally located to the growing population of the Western and South Western corridors, while also being well positioned to bring Winning Services’ legendary care to our customers across New South Wales,” said Mr Bunt.

Jeff Hogarth, President – Asia Pacific at Lineage said 36,000 sqm of cold storage at Aspect represents a major investment in the New South Wales food supply chain, delivering fast, more convenient fresh food to customers in NSW, linking NSW producers to the rest of Australia and important international markets.

“Lineage’s growing automation presence comes at a critical time for the cold chain sector as the COVID-19 pandemic has accelerated changes to operations. This facility with world leading technology will help address current demand for fast, reliable food supply in NSW which is being challenged because of an undersupply in temperature-controlled warehousing,” said Mr Hogarth.

CEVA Logistics Australia’s business in Australia is continuing to grow and investment in 33,000 sq m at Aspect will enable the company to continue to support its customer needs at a time of unprecedented supply chain disruption.

Mirvac’s integrated inhouse design team will bring a new level of quality and detail to the construction and finish of the warehouses at Aspect, drawing on the Group’s premium workplace and residential expertise that was demonstrated at Calibre Estate, Eastern Creek.

Mirvac’s General Manager of Industrial, Richard Seddon said Aspect is set to deliver key infrastructure for the wider Mamre Road Precinct, as the new employment hub and wider Aerotropolis region takes shape.

“We are delighted to be able to contribute critical construction and operational jobs as well as investment to boost the economic development of Western Sydney. We look forward to continuing to work closely with all our stakeholders including our customers and future occupants of Aspect, as well as Council and the wider community to deliver this exciting new precinct for Western Sydney,” said Mr Seddon.

The estate is in close proximity to the new Western Sydney Airport at Badgerys Creek and is less than 10 mins from the M7 motorway, 20km to Penrith and under an hour to Parramatta and the Sydney CBD.