ESR secures two pre-commitments at Horsley Park

ESR has started constructing its $320 million Horsley Logistics Park, in Sydney’s west, after securing two pre-commitments.

In the biggest deal, filling supplier and distributor Jalco Group has leased a 20,260 square facility, for manufacturing.

The tenant will join an undisclosed US-based package supplier, which will rent c15,700 sqm of temperature controlled warehouse space.

Both deals are for an initial 10 years.

ESR acquired the site making way for the estate from CSR in 2019 – the 20.8 hectare tract, part of the former PGH Bricks plant, cost $142.5 million and settled in January.

With these pre-commitments, the landlord intends to build all of stage one of the park – with 56,000 sqm in three warehouses.

A second development phase will add 55,000 sqm.

Jalco Group is a subsidiary of PACT – Australia’s largest contract manufacturer of consumer goods.

ESR chief executive officer Phil Pearce said that demand for quality warehouses in desirable locations, paired with rapid demand for temperature-controlled spaces, has risen, nationally, since COVID (story continues below).

“Many of our tenants are now wanting to become more independent, not having to rely on overseas distribution centres and manufacturing,” he added.

“We’ve seen a shift in consumer behaviour over the past year, and with consumers making more purchases online, both retailers and delivery service providers are looking for larger warehouses to accommodate this changed behaviour,” according to the executive.

Jalco Group Australia’s executive general manager, Greg Beilby, added the company will invest over $30m at the facility – including on equipment and automation technology – designed “to streamline…processes and cater for the need of clients, who range within the laundry and household cleaning, personal care, automotive and promotional packaging space divisions”.

Domestic manufacturing demand has increased as a direct result of the pandemic, he added.

“Many of our clients and their consumers are now seeking products that are produced and manufactured in Australia”.

Horsley Park is about 40 kilometres from Sydney.

CBRE’s Cameron Grier and Moishe Greengarten negotiated the pre-commitments.

Mr Grier, with Jason Edge, sold ESR the land two years ago.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of