A new warehousing estate on the doorstep of the new Western Sydney Airport has been green lit as the NSW Government seeks to alleviate a drastic shortage of industrial space across Sydney.

(image source: Barings)

In its latest announcement, the NSW Government said that the $139 million Barings Luddenham Industrial Park has been approved for development in the Western Sydney Aerotropolis.

Set to open in 2026, the 19.4-hectare estate is one of the first developments to be approved in the Western Sydney Aerotropolis that will surround the new Western Sydney International Airport that is scheduled to open late next year.

It will support the growth and development of the Aerotropolis by providing critical warehousing and logistics space.

Across seven buildings, the development will offer more than 63,500 square meters of floor space.

It will offer a range of warehousing options from around 1,000 square meters of space up to 30,000 square meters of space.

The development also proposes an onsite café, ancillary office spaces, an estate road network, two landscaped open space areas, stormwater management works, signage, waterway rehabilitation, car parking and infrastructure installation as well as estate wide landscaping.

(image source: Barings)

The approval comes as the Western Sydney Aerotropolis is beginning to take shape with the airport set to open next year.

Set to support more than 200,000 new jobs and accommodate up to 11,400 new homes, the Aerotropolis is one of the most significant developments in NSW’s history.

The 11,200ha project is made up of five initial precincts.

Land will be acquired for a further four precincts as the development progresses over the next 40 years.

All up, the Aerotropolis is expected to support more than 200,000 new jobs and accommodate up to 11,400 new homes.

The latest approval follows the recent approval of Bradfield City’s Central Park and the opening of the First Building in the Bradfield City Centre at the core of the Aerotropolis.

According to the Government, as many as $14 billion worth of private development applications are in the pipeline across the entire Aerotropolis.

Combined, these projects would create 120,000 jobs.

The approval also comes as Sydney faces a severe shortage of industrial land supply.

An analysis released by Atlas Economics and Infosys Portland last October found that Greater Sydney had just one year of serviced industrial land remaining in the pipeline.

This compares with 11.5 years and 13.5 years in Melbourne and Southeast Queensland respectively.

This has seen industrial rents rise and is placing limits upon the capacity and willingness of owners and operators of factories, warehouses, depots and distribution centres to find room for expansion.

This is turn has long-term implications for economic development and employment opportunities across Sydney and New South Wales.

In response, the NSW Government in January released its Industrial Lands Action Plan. The plan sets out a new approach to plan, secure and manage the supply of industrial lands throughout the state.

Construction on the new estate will begin in the middle of the year.

The first warehouse will open in December 2026.

The development was approved by the NSW Government as a State Significant Development.

Once operational, the development is expected to create more than 600 jobs.

NSW Minister for Planning and Public Spaces, Paul Scully, welcomed the latest approval.

“With the Western Sydney International Airport on the horizon and developments like this one gaining momentum, we’re laying the foundations for a Western Sydney that’s more connected, more vibrant, and offers more opportunity than ever before,” Scully said.

“The NSW Government is helping to drive investment, create jobs and support the development of the Western Sydney Aerotropolis with vital space for logistics.

“This project shows confidence in Western Sydney’s economic future. From construction jobs to long-term roles in logistics and operations, it’s investments like this that are helping to power our state’s growth and prosperity.”

 

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