Australian building-materials manufacturer Brickworks announced that its joint venture with real-estate company Goodman Group has received approval for the latest stage of its Western Sydney industrial development. The New South Wales state government has granted concept plan and development approval for Oakdale East Stage 2.
Construction will commence once final approvals are obtained, with the initial facility expected to be completed by mid-2025. The joint venture has secured a lease pre-commitment from an existing retail customer, who will become the cornerstone tenant at the site.
According to Brickworks Managing Director Lindsay Partridge, the developments at Oakdale East Stage 2 and Oakdale West will generate approximately AUD 90 million (USD 56.9 million) in additional rent for the Brickworks-Goodman Industrial JV Trust.
The market rent for prime industrial facilities in Western Sydney has surged by 48% over the last year due to strong demand, limited supply, and rising construction costs, Brickworks reported.
No additional capital contributions to the joint venture are expected from Brickworks, as Goodman's development funding will match the value of Brickworks' land contribution.
