The leasehold of a major development land parcel known as the Light Horse business hub in Sydney’s west has been put to the market for tender by the NSW government.
Goodman, Stockland, Mirvac, Dexus and Charter Hall are among the listed entities that have shown interest in the leasehold of the 30-hectare site being developed in conjunction with the NSW government’s Western Sydney Parklands Trust.
Private group LOGOS Property, said to be the front-runner to start due diligence on buying the $2 billion Qube Moorebank logistics park, is also expected to be interested in the Light Horse site.
Once completed, the end value of the Light Horse business hub will be about $400 million, and under the deal, the WSPT will tender for development of the ground lease and/or a development management agreement for the whole or part of the site.
The NSW Department of Planning, Industry & Environment recently granted development consent for a concept proposal for 157,600 sq m of industrial property and 7900 sq m of offices for the site, which sits at the M4/M7 junction and has a stage one development application for demolition, remediation, bulk earthworks, roadworks, site infrastructure and subdivision.
The land bank sits opposite Mirvac’s Calibre site and is part of the NSW government’s plan for the development of the western Sydney Airport.
Colliers International’s Gavin Bishop, David Hall and Peter Dale have been appointed on the tender deal.
It comes as the industrial property market powers ahead due to increased demand for distribution and warehouse hubs as online shopping heads to double-digit sales growth.
Knight Frank associate director research & consultancy Katy Dean said while the growth inecommerce had helped sustain the high level of leasing activity seen pre-COVID-19, it has alsoled to increased demand from large ecommerce and logistics occupiers that was reshaping theindustrial landscape in Sydney and Melbourne.
“In Sydney, a shift in occupier demand was driving new development activity, specifically for largerautomated purpose-built facilities,” Ms Dean said.
“Following a decade high year of completions in 2019, new developments are forecast to reach about 563,000 by the end of 2020.”
Keep up with Commercial Real Estate news.