This article is from the Australian Property Journal archive
The GPT Group has bought a major development site at Erskine Park, New South Wales for $95 million from CSR Limited.
The group said the site has the potential to redeveloped into an industrial complex with a value of over $300 million.
GPT’s industrial/business park portfolio manager Victor Georos said the site furthered the group’s strategy to pursue growth through development of industrial sites.
The purchase will provide GPT with access to a key industrial market with close proximity to major transport infrastructure. The M4/M7 interchange is in close proximity to the site, making it attractive to a range of potential tenants, including major logistics users.
“Acquiring a site with planning approval and servicing in place will be a significant advantage in responding quickly to tenant demand for space in this area,” Georos said. “As the site has the ability to develop close to 190,000 sqm of lettable space we are well placed to meet a range of user requirements for space.”
GPT already has a significant development pipeline in the business park sector through the group’s holdings at Sydney Olympic Park and Macquarie Park in NSW.
Georos said the group has been looking for an appropriate acquisition to give it increased exposure to the logistics sector in Sydney, which shows strong demand.
In addition, he added the acquisition will provides further portfolio diversity.
Erskine Park will substantially increase the group’s development pipeline through the ability to develop the site over the short to medium term.
Upon completion of the acquisition, GPT’s Industrial/Business Park Portfolio will have a value of approximately $800 million, with development potential of approximately $800 million over the medium term.
This acquisition is subject to the provision of an approved Concept Plan and the completion of subdivision and servicing works by CSR.
CSR will complete the servicing works and provide the site to GPT fully serviced and benched for construction on completion of the transaction, which is currently anticipated to be around September 2007.
By Adam Parsons
