CSR Limited has sold another piece of its soon-to-close PGH Bricks plant in Horsley Park to an industrial developer – for $84.3 million.
The diversified group is anticipating a $48m pre-tax profit in the financial year ending March 2024 disposing of the remediated 8.6 hectares to an as-yet-undisclosed North American entity.
It is the third part of 327-335 Burley Road offloaded since 2018.
CBRE’s Cameron Grier and Jason Edge were the agents.
Horsley Park sell down
Within a major and growing industrial hub about 10 kilometres north east of Western Sydney International Airport, which is under construction, the Horsley Park factory will shut next year leaving PGH with five operating plants in the city.
CSR will also control about 400ha in the western suburbs, but has flagged more divestment – including of a factory in neighbouring Cecil Park earmarked for a town centre.
In early 2018, the first tranche of 327-335 Burley Rd was offloaded – a 10ha portion, to Frasers Property Australia, for $58m.
Eleven months ago, it traded a 20.8ha slice to ESR, banking $142.5m pre-taxes and costs.
Mr Grier said there “very strong” demand from both owner occupiers and developers for large industrial zoned western Sydney tracts (story continues below).
“Land supply in western Sydney had reached critical supply levels, whereby large occupiers had limited choice and many where forced to locate in Melbourne and Brisbane.
“However, with recently rezoned land in Kemps Creek and an imminent rezoning in the North Gateway of the Aerotropolis, western Sydney is able to attract the big footprint occupiers once again.”
Unlocking underlying land value maximises PGH opportunities: CSL
CSR managing director and chief executive officer Julie Coates said Horsley Park is an attractive industrial area within western Sydney, well connected to major transport and infrastructure” and “our large network of operating sites ensures that we can maximise the opportunity for our PGH Bricks business whilst our Property business optimises the underlying value of our landholdings”.
Colleague, chief financial officer and executive general manager David Fallu added “the Horsley Park site required major rehabilitation and reconstruction” to be prepared for alternative use.
“The results we have been able to achieve…highlights the value uplift we can deliver by directly managing these large-scale rehabilitation and rezoning processes”.
The sale of the third tranche of 327-335 Burley Rd is subject to Foreign Investment Review Board approval.
CSR was established in 1855 as Colonial Sugar Refining Company.
Horsley Park is about 40kms from Sydney.