ESR Clears Next Stage of Western Sydney Logistics

The next phase of a $320-million industrial hub at Horsley Park has the green light as ESR ramps up its Western Sydney rollout.

The Asia-Pacific logistics group has secured state significant approval for a $96.6-million build comprising 55,900sq m of warehouse and office space across two buildings designed by Nettletontribe.

The 8.67ha site at 3 Johnston Crescent will operate 24/7, and has 254 parking spaces, dedicated truck access and landscaped frontages.

The new buildings include 52,794sq m of warehousing and 3106sq m of offices.

Warehouse A will be split between two tenants. Warehouse B is designed for a single user.

Stage 2 is expected to generate 508 operational jobs and 306 during construction.

It follows the 2022 delivery of Stage 1, a $142.5-million project adding 56,000sq m across three warehouses, now leased to tenants including Pact Group’s Jalco business, UPS, Holman Industries, Fienza, Tennant Australia & NZ and Rhomberg Rail.

When complete, Horsley Logistics Park will span more than 111,000sq m across a 20.8ha site within the Western Sydney Employment Area.

ESR said the location “provides efficient access and distribution of goods and services to the Western Sydney Aerotropolis and the broader metropolitan Sydney region”.

The approval comes days after ESR completed its delisting from the Hong Kong Stock Exchange.

A consortium including Starwood Capital, Warburg Pincus, Sixth Street, Qatar Investment Authority and others has taken control of the business.

Phil Pearce, chief executive of ESR Australia and New Zealand, has been named group president.

The restructure is designed to sharpen ESR’s focus on logistics and data centres across the region.

In February, the company secured approval for a $268-million multi-level warehouse and distribution centre at Milperra.

The project includes 12 warehouse tenancies, office space and a cafe across a 77,000sq m site.

In June, it filed plans for a $170 million warehouse estate at Badgerys Creek.

The two-stage development would deliver four buildings and 90,000sq m of floorspace on a 17ha site near the Western Sydney Airport.

ESR is progressing a $65.2-million industrial project at Villawood, approved by the Sydney South Planning Panel in late 2024.

The scheme includes three warehouses, six tenancies, ancillary offices and a cafe across 31,165sq m.