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Real estate group Dexus has begun construction of an industrial estate in Chester Hill, one of three new estates it is developing in the booming growth corridor of Western Sydney.
In a media release, the company announced that it turned the first sod on 149 Orchard Road in Chester Hill, with a target completion date of mid-2025.
Dexus is also building an estate at Moorebank (Velociti) with plans for a further development at Marsden Park (Vertex), which has an expected start date of construction in the third quarter of 2024.
The estates, together with the recently completed Circuit.7 in Glendenning, will deliver industrial space across around 117,000 square metres of gross lettable area at a construction value of around $460 million, Dexus said.
One of Australia’s most industrial markets, Western Sydney is expected to be turbocharged by the 11,200-hectare Western Sydney Aerotropolis due to be opened in 2026. The area has strong population growth and will receive a significant boost in housing investment over the coming decades.
Recently, Chris Mackenzie (pictured above) was appointed executive general manager for industrial at Dexus with end-to-end responsibility for the platform’s industrial assets, including origination, development, asset management, and leasing.
In a statement, Mackenzie said there is continued “strong demand” for high quality industrial product in Western Sydney as customers seek “modern, efficient industrial space in desirable locations.”
He also said Dexus’ Western Sydney investments will provide customers with facilities that have flexible designs to meet their specific needs.
“To support customers’ sustainability journey, the designs will include our battery infrastructure initiative aimed at helping customers meet their energy efficiency and carbon emission targets,” Mackenzie said.
According to Dexus, the projected population growth of 7% in Western Sydney over the next five years will support demand for an additional 13.8 million square metres of industrial space across the country.
New Colliers research predicts that as demand for industrial space in Western Sydney outstrips available supply, investment interest in new warehouses and logistics facilities will increase, Dexus said.
“There is 2.5 million to 3 million square metres of active tenant demand across east coast submarkets and as of mid-March, 46% of supply for 2024 has already been committed,” the company said.
