ESR Australia acquires office asset in Macquarie Park precinct for $71M
ESR Australia has acquired a fully leased office and warehouse complex in Macquarie Park NSW for $71 million.
Located in the tightly held Macquarie Park precinct, 44-50 Waterlood Road comprises 7,156 sqm of office and warehouse accommodation on a 1.5 ha site that is immediately adjacent to the Macquarie Park Train Station.
The asset also sits within the Macquarie Park Incentive Precinct which has been earmarked by the NSW Government to be accelerated as a key economic and innovation precinct.
ESR said that over the long term, they are planning a staged redevelopment of the site into A-Grade office buildings.
“This landbank investment offers exponential opportunity as it provides holding income to allow a staged redevelopment,” said Phil Pearce, CEO, ESR Australia.
“The area is well placed to capitalise on the changing office landscape with an increase in demand for decentralised office space since the COVID19 pandemic,” Pearce said.
He continued that ESR sees business park assets as complementary to our core strategy of logistics and industrial property. He also said the group has strong capability in the development and management of business park space and are pleased to add this strategic asset to their portfolio.
The COVID-19 pandemic has accelerated the shift towards a more diverse office market. There is rising demand for suburban office space as businesses either decentralise away from CBDs or transition to a hub and spoke model with a central location plus office space in suburban areas.
Macquarie Park is the third largest office precinct in Sydney, and is seen as the strongest suburban office market.
ESR said the precinct is ideally situated to service this demand, both from an accessibility and cost-effectiveness perspective. The group further explained that the area is well connected to major arterials and public transport, with a wide array of amenity.
Source: ESR Australia