ESR Australia has secured a scalable 17ha parcel in tightly held Badgerys Creek, marking its first foothold in the Western Sydney Aerotropolis.

Situated in the Liverpool City Council area, the site is zoned within Priority 1 Zone for Enterprise / Light Industrial development. It is located less than 3km from the entrance to the new Western Sydney Airport, the site fronts the main arterial of Martin Road.

ESR Australia will commit a total of c.$270 million in the acquisition and development of the site, delivering a total gross floor area (GFA) of c.82,000sqm across four warehouses. In alignment with ESR’s ESG commitments, there will be a focus on reducing energy consumption and incorporation of human-centric design in consultation with local communities.

ESR Australia CEO, Phil Pearce, said, “ESR Australia is pleased to secure the scalable Martins Road site and will exercise its robust development capability to ensure the delivery of premium facilities in line with the anticipated opening of Western Sydney Airport in 2026.

“Future customers at ESR’s Martins Road site will have the ability to be operational as soon as Western Sydney Airport comes online. They will also have the benefit of leading-edge renewable energy infrastructure, which is an increasing concern for our customers with the rise of automation and electrified fleets,” Mr Pearce said.

The deal was managed and negotiated by Harry Bui, Head of Asia Market, Australia, of Colliers who was acting as a trusted advisor on behalf of the private Vietnamese private family office.

Mr Bui said, “As this is one of the last remaining blocks of this size owned by the private family, the owner has previously been approached by several developers to acquire the site”.

The record increase in industrial rents have bolstered the pricing of land in Western Sydney, with a further 27.5 per cent of rental growth seen in the first six months of 2023 alone, coming off a record year of 33 per cent in 2022. The long-term average is 4.9 per cent per annum.