Mirvac estate to house US giant's $250m cold storage shed
Lineage Logistics, the world’s biggest developer, owner and operator of cold storage facilities, has struck a deal with Mirvac to build a $250 million automated fresh produce warehouse at Kemps Creek in Sydney’s outer west.
The proposed 36,000sq m specialist facility will be built on a 7ha site bought from Mirvac and within its 56-hectare Aspect Industrial Estate.
The estate at 804-882 Mamre Road was rezoned for industrial use in June 2020 as part of the wider rezoning of the 850ha Mamre Road Precinct by the NSW government to free up for more land for logistics development around the Badgery’s Creek Airport hub.
For Lineage Logistics, which with Americold and NewCold has led the overseas takeover of Australia’s $5 billion cold storage sector, the Kemps Creek facility will give it a second major facility in Sydney alongside a regional distribution centre in Prestons.
Michigan-based Lineage entered the Australian market in 2020 following its $1.3 billion takeover of global rival Emergent Cold. Before this deal, Emergent had snapped up a number of family-run Australian cold storage companies including Montague Cold Storage and Swire Cold Storage.
The Emergent takeover gave Lineage an Australian network of 30 temperature-controlled warehouses offering 3.4 million cubic metres of storage space and capacity for over 522,000 storage pallets.
In December, Lineage increased its presence in Australia after acquiring South Australian transport and warehousing company Auscold Logistics, including a 32,000sq m cold storage warehouse in Adelaide and a fleet of over 70 temperature-controlled trucks.
‘Game changer’
The proposed Kemps Creek warehouse will comprise a 50,000-pallet automated facility and an 18,000-pallet manual facility for retail operations as well as 43 loading docks and 235 carparks.
Awaiting planning approval from the NSW government, it is due to begin operating from the second half of 2024.
Lineage Logistics Asia Pacific senior vice-president Jeff Hogarth said the new cold storage warehouse would be a “game changer” for the company in Australia in terms of its ability to service new and existing customers.
Globally, Lineage’s customer base includes McDonald’s, Walmart and Campbells.
“This major investment in the NSW food supply chain will allow the fast and secure delivery of fresh food produce to our customers. It also links producers in NSW to the rest of Australia and important international markets,” Mr Hogarth said.
CBRE industrial and logistics regional director Cameron Grier, who negotiated the Lineage deal, said there was not a single vacant cold storage building across the country.
“There’s been real growth in the sector, which is why Lineage is buying this land,” Mr Grier told The Australian Financial Review.
He declined to say how much Lineage had paid for the site, but said land sales at Kemps Creek were averaging well over $1000 per square metre.
Based on CBRE analysis, more than 113ha of land in Kemps Creek has been sold or pre-leased for industrial development since the precinct was rezoned in 2020.
“It equates to 26 per cent of all usable land, which is enormous,” Mr Grier said.
Of this take up, only two parcels had been sold to owner-occupiers, the Lineage site and another for a $1.3 billion Microsoft data centre.
“Land is very hard to buy in this market,” he said.
Richard Seddon, general manager for industrial at Mirvac, said the group was delighted to welcome Lineage as a key partner for new estate.
“Subject to the relevant approvals from NSW Department of Planning and Environment, we look forward to working closely with Lineage to co-create a state-of-the-art solution in this highly strategic location that will enable them to continue to support their customers, as well as boost the NSW economy,” he said.
