Leading Australian property fund manager ISPT has commenced construction on an 18,800sqm prime-grade asset at 61 Eastern Creek Drive, Eastern Creek and an 18,360sqm prime-grade warehouse facility at Bessemer Business Park in Blacktown.

The milestone comes at a crucial time for the market, with prime-quality industrial stock remaining highly sought-after in the wake of record-low vacancy rates and robust demand as tenants pursue efficient built form with optimal cubic capacity and advanced ESG credentials.

ISPT’s industrial portfolio spans across 21 estates nationally, with 9 Bessemer Street and 61 Eastern Creek Drive set to add $170 million of core assets to its total holdings. These market leading developments comprise part of the ISPT 1.4 million square metre development pipeline.

ISPT’s Head of Portfolio (Industrial) Tim Jackson commented: “Western Sydney is the engine room of the NSW economy and the development of these two industrial sites will provide supply to markets which are seeing record low vacancy and sustained occupier demand.

“Our conviction in this sector and integrated delivery capability will see us develop a combined 37,000sqm of super prime grade assets in this key market, as we accelerate our development pipeline with 238,000sqm of total stock under construction nationally.”

Both projects will put sustainability at the forefront and are targeting a 5 Star Green Star Design and As Built ratings. Sustainability initiatives include a 378KWH solar array, creating renewable power for the benefit of the occupant, along with EV charging stations within the car park.

61 Eastern Creek Drive is situated within the premier industrial precinct that offers optimal access to Western Sydney’s arterial network and the Blacktown City’s skilled labour workforce. Prime Constructions have commenced onsite works for the 18,800sqm facility, on schedule for practical completion Q1FY25.

JLL’s Bella Cass, Greg Pike and Peter Blade have been appointed as co-ordinating leasing agents for this development On the Eastern Creek Drive development, Greg Pike at JLL said:

“Certainty of delivery, near-term sustainability targets and reshaped supply chains are the key attributes driving current tenant demand.

“New supply of scale is still relatively constrained across Western Sydney with the prolonged planning challenges of the Kemps Creek precinct still a significant problem for landlords and occupiers alike.

As a result, we will continue to see rents for spec-developed products hold higher face rents for the coming 12 months.”

JLL’s Bella Cass said: “JLL is excited to partner with ISPT on this project as it a quality new development that offers tenants a prime-grade asset with significant sustainability features in the heartland of Western Sydney’s industrial precinct.”

The speculative development of 9 Bessemer Street follows at the success of the recently completed 11 Bessemer Street, with commitment from customers during construction demonstrating the demand for premium grade warehousing with superior access to the M7and M2 Motorways. Building partner Texco commenced construction of the 18,360sqm building in November with target practical completion Q1FY25.

ISPT have appointed CBRE’s Moshe Greengarten, John Micallef and Cameron Grier as co-ordinating leasing agents for 9 Bessemer St. On the Bessemer Street development, John Micallef at CBRE said: “We anticipate strong interest in 9 Bessemer Street given the flexibility of sizes that can be accommodated, coupled with severe undersupply of new product in the North West market.

“Tenants within the North West of Sydney typically like to stay within the area to retain staff, and as a result we have always seen a strong uptake of speculative developments locally. A great example is ISPT's 11 Bessemer Street which was fully leased well before practical completion.”