Property and Infrastructure Specialists

Aerotropolis Update: Key Insights into the Mamre Road Precinct Announcement

Last week the Department of Planning, Industry and Environment (DPIE) released a draft Structure Plan and Rezoning Discussion Paper for the Mamre Road Precinct in Kemps Creek in Sydney’s South West. The Mamre Road Precinct is envisaged to be an industrial hub providing approx. 780ha of new industrial land, 17,000 new jobs, critical transport corridors and a new intermodal terminal.
Aerortopolis Update Key Insights into the Mamre Road Precinct Announcement

The Mamre Road Precinct is unique in that it was included in the Western Sydney Employment Area (WSEA) boundary in 2014 but was never zoned under the State Environmental Planning Policy (Western Sydney Employment Area) 2009 given the intentions and land use uncertainty for development in the Aerotropolis. The precinct was captured in DPIE’s Aerotropolis Land Use Infrastructure Implementation Plan (LUIIP) (Stage 1) released in 2018.

Rezoning of initial precincts in the Aerotropolis and the release of the Stage 2 LUIIP have been delayed due to a number of factors including:

  • Decisions and ongoing planning around key infrastructure components (i.e. the North South Rail business case);
  • Coordinated approaches to land use planning between the WCAA and the Planning Partnership; and
  • Disruptions associated with the State and Federal elections earlier this year.

The Stage 2 LUIIP is anticipated to be released in December 2019 in line with other key announcements around committed infrastructure in the Aerotropolis.

The Mamre Road Precinct announcement is intriguing for a number of reasons:

  1. The Precinct may now be rezoned ahead of the three initial precincts identified in the Stage 1 LUIIP. This is contrary to the staging plan for the Aerotropolis which was included in the LUIIP. The announcement is unclear about the timing of when rezoning will occur, however it is anticipated that a standard 18-24 month timeframe for precinct planning, public exhibition and rezoning will be adhered to - but take this with a grain of salt.
  2. The Draft Discussion Paper released as part of the announcement includes commitments to the upgrade of Mamre Road along with other transport infrastructure including a possible Intermodal Terminal and freight rail link which has caught many in the industry by surprise. The Structure Plan hints at possible future land acquisitions from a number of major developers holding sites within the precinct to accommodate this infrastructure.
  3. Whilst the Structure Plan does not necessarily give effect to rezoning, the release of a rezoning discussion paper identifies preferred future land use zoning outcomes – predominantly a widespread application of the IN1 General Residential zone and ‘E’ zones to preserve important biodiversity corridors.
  4. A number of funding mechanisms are being explored including a Growth Infrastructure Compact being prepared by DPIE and the Greater Sydney Commission for the Aerotropolis. It is intended that the Aerotropolis State Infrastructure Contribution (SIC) would apply to the Mamre Road Precinct, however, prior to the enforcement of the Aerotropolis SIC, developers will need to make satisfactory arrangements such as Voluntary Planning Agreements (VPAs), which reflect the anticipated SIC rates.

The rezoning of the Mamre Road Precinct will address an urgent need to provide additional industrial land in Metropolitan Sydney to facilitate increased freight and logistics operations driven by a continued rise in e-commerce.

The Draft Structure Plan and Rezoning Discussion Paper for the Mamre Road Precinct is on exhibition until the 18th of December 2019. If you have land located in the Mamre Road Precinct or want to understand more about this announcement and its implications, or to make a submission, please contact APP’s planning team.

APP Planners

Madison Winnel - Urban Planner

Madison Winnel - Urban Planner

Madison is an experienced urban planner with a range of expertise crossing all sectors of the industry. Contact Madison

Josh Owen - Senior Associate Planner

Josh Owen - Senior Associate Planner

Josh provides expert advice to help landowners derive maximum value from their assets and specialises in scoping, identifying and creating new development projects. Contact Josh