ESR Australia buys site for $200m development project

ESR Australia has paid A$143 million ($97 million) for a large-scale industrial site at 49 Stephen Road, Botany, in South Sydney.

The site totals 8,000 square meters (86,110 square feet) and is occupied by the seller, Allnex, a market-leading manufacturer of adhesives, sealants and specialty coatings.

“The strong demand for space within the precinct and site's planning overlay will enable us to explore multi-level warehousing on the site,” said Phil Pearce, ESR Australia CEO.

The acquisition is in line with the strategy of EADP II, which plans redevelop the asset into a core logistics center. ESR Australia intends to invest a further A$300 million ($203 million) to deliver 58,000 square meters (624,307 square feet) of gross floor area.

South Sydney is near the Port Botany, Sydney Kingsford Smith Airport and major arterial road networks.