Aware Super has formed an equal joint venture with Frasers Property Industrial to develop a A$1bn (€648m) industrial complex in Sydney’s west.

The 70-hectare precinct will be developed to become The YARDS, a major industrial and logistics community venture at Kemps Creek in Western Sydney.

Aware Super has appointed Altis Property Partners as its development manager for project, which would yield some 40,000sqm of warehouse space. Practical completion of Stage 1 of The YARDS is scheduled for early 2022.

This is the third large industrial development for Aware Super in its push to deepen its footprint in the keenly sought after industrial sector.

Damien Webb, Aware Super’s head of fixed income and real assets, told IPE Real Assets: “As the sole owner of Bankstown and Camden Airport we are also developing the new Altitude industrial precinct at Bankstown and have also developed First Estate in Erskine Park, which backs onto The YARDS.”

He explained that more broadly, the investment continued the fund’s long-term and significant investment in Greater Western Sydney.

“Across our three large scale industrial sites and including our essential worker affordable housing sites in Epping, Northmead and our two planned developments in Liverpool and Castle Hill our total commitment is now A$845m. The expected completed value of these projects is around A$2.5bn,” he said.

Asked if the fund was moving more in direct development, Webb said: “As Aware Super has continued to grow, we are looking to develop new generation, innovative projects that will continue to deliver for our members in the long-term.

“We have undertaken developments aligned to some emerging themes: the ageing population which aligns to our retirement living investments; the increased influence of millennials which aligns to our investment in essential worker affordable housing and multi-family developments; and new technologies and online retail which aligns to our investments in industrial developments,” he said.

Aware Super chief investment officer, Damian Graham, said the project was “a great example” of how super funds like Aware Super, could deliver strong, sustainable long-term returns while having a positive impact on our community by supporting jobs growth and investing in critical business and social infrastructure.

Frasers Property Industrial CEO Reini Otter said the project, a critical piece of new infrastructure for Western Sydney, would showcase a premium industrial estate design incorporating state of the art green building features.

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