Construction Industry in Australia Soars to New Heights with Record Crane Activity
Australia’s construction industry is on an exhilarating journey marked by a remarkable…
13 July 2023
A noteworthy partnership has been formed between Lendlease, a prominent Australian property firm, and Phoenix Property Investors, a private equity real estate group based in Hong Kong. The partnership is focused on creating a logistics precinct in the western region of Sydney as the demand for superior industrial and logistics space continues to surge.
The joint venture has its sights set on a 30ha site at St Marys, located 45km from the central business district. With an estimated final development value of approximately $185 million, the proposed site at 75–103 Links Road is seen by the partners as an ideal location for future industrial development. The site offers the potential to construct large or small-scale logistics facilities tailored to market demand. Furthermore, it boasts excellent transport connectivity, offering access to greater Sydney and crucial interstate transport routes.
Recent data from CBRE shows that Sydney’s industrial and logistics market has become the most competitive in Australia, with the vacancy rate currently at a mere 1.40 per cent, after having been halved over the past six months.
Under the agreement, Phoenix will hold the majority interest in the joint venture, while Lendlease will serve as the development and investment manager. The precinct’s masterplan is expected to be submitted this year.
According to a spokesperson, the new precinct offers significant investment opportunities in western Sydney for manufacturing, transport, and logistics industries. The precinct is predicted to accommodate continued growth in the industrial sector amid increased emphasis on supply chain resilience.
Tom Mackellar, Lendlease’s managing director of development, stated that the collaboration with Phoenix aligns with their investment-led strategy. He explained, “The proposed St Marys precinct is projected to cater to the demand and growth in the industrial and logistics sector. We are eager to cooperate with our new partner Phoenix, and government stakeholders, to devise a new masterplan and development agreement for the phased development of this strategic site.”