Mirvac and PAYCE will work collaboratively to finalise the design of the precinct and obtain all required approvals. Mirvac’s acquisition is a joint venture with an investment vehicle sponsored by Morgan Stanley Real Estate Investing (MSREI).
The landholding is zoned for industrial use and has an expected end value of $250 million. It is located close to Auburn town centre, 3.3 kilometres from Parramatta CBD and 18 kilometres from Sydney CBD, in the heart of Sydney’s tightly held Inner West industrial market.
Mirvac plans to deploy its award-winning asset creation capability to bring to life a state-of-the-art industrial facility at the site. Offering premium flexible warehouse and office space, the vision for the estate is to set a new standard in industrial property for its amenity, sustainability, technology, quality and flexibility, while catering to the growth in e-commerce and the demand for ‘last mile’ delivery locations.
The location is expected to benefit from significant infrastructure investment, including the $16.8 billion WestConnex which will improve connections from the Inner West to the CBD, through to South Sydney and Port Botany, via a new underground M4-M5 link. Stage 3 is under construction and due for completion in 2023.
Mirvac’s Head of Office and Industrial, Campbell Hanan, said, “With the growth of e-commerce and the demand from our logistics and retail customers for premium, ‘last mile’ distribution facilities in Sydney, we are delighted to be able to strengthen our industrial pipeline with this strategic development opportunity, which also enables us to maintain our 100 per cent weighting to industrial in key Sydney markets.
“Cumberland Council is committed to generating local employment opportunities and this site has the potential to become a vibrant new employment precinct in the Inner West. With our capability and experience in delivering premium industrial facilities, Mirvac is ideally placed to support the Council in realising this exciting vision and we look forward to working closely with both the Council and the community throughout the planning process to ensure the design integrates seamlessly and sensitively into the existing urban landscape.”
“The transaction will further strengthen our relationship with MSREI and see the capital partnership with them grow to approximately $1.8 billion in co-owned assets, based on 100 per cent value,” he added.