NextDC spends $124m for data centre plot
NextDC has acquired another west Sydney block for a data centre.
The 12.4 hectare parcel – until recently part of the ex-PGH Bricks plant – is costing $124 million from CSR.
The buyer is intending a 300MW capacity facility to service Hyperscale Cloud Providers.
This project would also include offices and collaboration spaces.
PGH Bricks ceased operating at Horsley Park three months ago.
CBRE’s Cameron Grier and Jason Edge sold the block for CSR.
Substantially higher capacity
Elsewhere in Sydney, NextDC operates two Macquarie Park data centres – S1, containing 5800 square metres and with a 16MW capacity, and S2 (8700 sqm, 30MW)
It is also constructing a 20,000 sqm asset of this type, S3, with an 80MW output, in inner north Artarmon.
The group also holds this product in Brisbane (in the CBD and Fortitude Valley), Canberra (Bruce), Melbourne (Port Melbourne and Tullamarine) and Perth (in the city, and Malaga).
S4 at Horsley Park
The Horsley Park land will settle in stages with the data centre due for completion by mid-2025.
“The demand for premium quality data centre assets in digital gateway regions such as Sydney continues to reflect the growth trajectory of technology infrastructure over the next decade,” NextDC chief executive officer and managing director, Craig Scroggie, said (story continues below).
“NextDC looks forward to being able to offer its customers dual availability zone solutions across its existing S1 and S2 Macquarie Park and S3 Gore Hill metropolitan data centres as well as this new S4 hyperscale campus in western Sydney,” he added.
Last year, rival Digital Realty paid $84.3m for an 8.6ha piece of the former brickworks.
That group holds four Erskine Park data centres sites, one – at 78 Lockwood Road – which cost $97.7m last month.
CSR banks $408m from brickworks sites
With the NextDC and Digital Realty deals, CSR has now sold all available sites at the 52ha ex-PGH Bricks plant.
Its biggest disposal was to ESR, which in 2019 paid $142.5m for a 20.8ha portion with plans for an industrial estate.
Three years ago, Frasers Property Australia outlaid $58m for a 10ha component.
Earnings before interest and taxes on the sales are expected to exceed $230m.
“With contracted transactions now confirmed for all land at Horsley Park, we have secured significant property earnings to be delivered progressively over the next four years,” CSR chief financial officer and EGM Property’s David Fallu said.
“Our rehabilitation and reconstruction of the former quarry at the Horsley Park site has progressed, with completion of the next stage of land remaining on track to deliver $18m of EBIT before the end of CSR’s current financial year on 31 March, 2022,” according to the executive.
“Horsley Park is located in a very attractive area within the western Sydney industrial market strategically positioned relative to major transport, power and infrastructure links,” the company’s joint managing director and chief executive officer, Julie Coates, added.
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