Dexus expands industrial footprint in Western Sydney

Dexus, one of Australia’s largest industrial property managers, is ramping up its development of industrial storage and distribution facilities in Western Sydney’s booming growth corridor.

The company has commenced construction on three new industrial estates:

149 Orchard Road, Chester Hill – Expected completion in mid-2025
Velociti, Moorebank – Forecast to complete late 2024
Vertex, Marsden Park – Construction due to start in 2024, with completion expected in Q3 2025

These projects, along with the recently completed Circuit.7 in Glendenning, will deliver approximately 117,000 square metres of premium industrial space at a construction value of about $460 million.

Chris Mackenzie, newly appointed Executive General Manager of Industrial at Dexus, highlighted the strong demand for high-quality industrial facilities in Western Sydney. He emphasized that the new developments will offer flexible designs to meet specific customer needs and include sustainability features such as battery infrastructure to help customers meet energy efficiency and carbon emissions targets.

The investment in Western Sydney is driven by several factors:

Projected population growth of 7% (nearly 2 million people) over the next five years
Estimated demand for an additional 13.8 million square metres of industrial space across Australia
The upcoming Western Sydney Aerotropolis, set to open in 2026

Recent research from Colliers indicates that demand for industrial space in Western Sydney is outpacing available supply, with 46% of supply for 2024 already committed as of mid-March.

Dexus manages a $11 billion industrial portfolio across Australia, including major estates in Perth, Melbourne, Brisbane, and Sydney.

The company’s strategy of partnering with third-party capital on investments while leveraging its own capabilities in transactions, development, and asset management has delivered returns to investors across its listed and funds management businesses.

As Western Sydney continues to grow and develop, Dexus is positioning itself to capitalize on the increasing demand for modern, efficient, and sustainable industrial spaces in this dynamic region.