An ESR Australia-managed logistics development vehicle has secured an industrial site in Botany, South Sydney suburb for A$143m (€89m).

The GIC-backed ESR Australia Development Partnership II (EADP II), will invest a further A$300m to redevelop the site potentially into the company’s first multi-storey logistics facility.

The Botany site, a 4.8ha site at 49 Stephen Road in Banksmeadow, is currently home to global industrial coating resins company allnex, which has sold the site as it streamlines its Australasian operations. The industrial group has done the deal with ESR on a five-year sales-and-leaseback arrangement.

Phil Pearce, ESR Australia CEO said the group was pleased to secure an infill site of this scale in the highly sought Botany precinct.

“The strong demand for space with the precinct and site’s planning overlay will enable us to explore multi-level warehousing on the site,” he said.

The South Sydney acquisition takes the ESR development pipeline in Australia to A$7.9bn.

EADP II was launched in 2022, raising A$540m in its first close. Singapore’s GIC committed A$490m to the fund, which has a target to build up A$1bn in assets.

To read the latest edition of the latest IPE Real Assets magazine click here.