Building materials business CSR is commencing an EOI process to sell a 194ha Sydney site with the potential to accommodate one of Australia’s largest industrial estates adjacent to the new Western Sydney International Airport.

CBRE’s Cameron Grier and Jason Edge will steer an International Expressions of Interest campaign to sell the former brick manufacturing and quarry site at 235 Martin Road, Badgerys Creek.

Mr Grier said the EOI process will provide an unprecedented opportunity to develop a $3-4 billion end value industrial estate in Sydney’s land constrained industrial & logistics market.

“Sydney has a chronic shortage of industrial land available for development over the next decade,” Mr Grier noted.

“At the same time, occupier footprints are increasing rapidly, with many businesses struggling to find suitable sites that can cater for logistics facilities over 40,000sqm.

“This supply/demand imbalance is expected to drive significant national and international interest in the CSR site, given its prominent Badgerys Creek location and surrounding multi-billion

This includes a $20 billion investment by the NSW and Commonwealth Government to deliver the new Western Sydney Airport and critical infrastructure such as the new M12 motorway to support the surrounding Western Sydney Aerotropolis.

Another $1 billion in joint funding was approved in January this year for major upgrades of Fifteenth Avenue to create a critical transit corridor between Liverpool and the new airport.

The International Expressions of Interest campaign for the Badgerys Creek Martin Road site will officially launch next month.

Sydney’s industrial land shortage will be a key driver of buyer interest, with an upcoming CBRE report highlighting that just 4% of the city’s serviced and industrial-zoned land is undeveloped.

Demand from transport & logistics, e-commerce, and manufacturing occupiers is far outstripping supply, with over 40% of the new industrial development supply due to be delivered in 2025 and 2026 having already been pre-committed.

CBRE’s report highlights that Sydney has an industrial & logistics vacancy rate of just 2.1% - one of the tightest of any city globally.

Limited speculative development activity, strong pre-commitment levels and the city’s constrained land supply forecast is forecast to keep vacancy rates low, particularly in Sydney’s Outer West where the amount of land available for development has almost halved over the past decade.