Billbergia, ESR Plot Sydney Warehouse Projects

Billbergia and ESR Australia are planning seperate industrial developments in major logistics and distribution corridors in Sydney. 

ESR, part of the Hong Kong-based ESR Group, has lodged plans with the Canterbury Bankstown council for an industrial development in Villawood that would deliver an approximate gross leasable area (GLA) of 36,155 square metres.

The planned distribution centre consists of three warehouse-type buildings, ancillary offices, a cafe and 179 car parking spaces.

The capital investment value of the works is $64.2 million. The project will be determined by the Sydney South Planning Panel due to its size.

Much of the site has been heavily developed with multiple one and two-storey buildings, and is currently occupied by PPG Architectural Coatings. 

The site is in the Southern City District, part of the Greater Sydney Plan, which aims to “retain and manage industrial and urban services land….[and] seeks to safeguard all existing industrial and urban services land from competing pressures, especially from residential and mixed-use zones”.

Last week, ESR, which has an $8.3-billion pipeline of 2.3 million square metres, also secured a foothold in the Western Sydney Aerotropolis—a 17ha Badgerys Creek site for $70 million, where it plans to develop approximately 82,000sq GFA of prime logistics space.

▲ According to CBRE, leasing transactions over the second quarter of 2023 were dominated by existing buildings and speculative development.

Meanwhile, Billbergia has filed plans with the City of Parramatta for two buildings for warehouse and distribution centre uses, providing a total of 19,107sq m of gross floor area. 

The site has an area of 7.2ha next to the Parramatta River and is also near a future light rail stop. 

If approved, the project at 1 Grand Avenue in the northern suburb of Camellia, will enhance the river foreshore through the provision of pathways and landscaping as well as food and drink amenities.

Currently storage for freight containers, Billbergia’s proposal foe the site also includes offices, parking, loading bay and a cafe.

Billbergia said it would provide “a significant amount of industrial floor area” and encourage further employment in the area. 

Across the country industrial space remains tight, prompting big players to rampe up invested in the distribution and logistics space. 

According to CBRE’s latest Sydney market report for the real estate sector, gross take up over the second quarter of 2023 increased to 53,185 square metres, and that this had been hindered by the lack of available space. 

The average vacancy rate remains at a record low of 0.2 per cent, which the agents say is the lowest vacancy rate of any city globally.