ESR spent $70m in Aerotropolis

ESR Australia have expanded their footprints into the booming industrial property market with a focus on Sydney’s western zones, where demand is rising in preparation for the new second airport.

The deals come as industrial land supply is near zero in some areas and rents are booming.

ESR Australia has paid $70 million for a 17 hectare parcel of developable land ($412/m2) in tightly held Badgerys Creek 75 Martin Road Badgerys Creek, marking its first foothold in the Western Sydney Aerotropolis

ESR Australia will commit a total of $270 million in the acquisition and development of the site, which expands across four warehouses.

ESR Australia chief executive Phil Pearce said ESR Australia 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.

The record increase in industrial rents has 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.