ESR Australia has acquired a fully leased office and warehouse complex, 44-50 Waterloo Road in Macquarie Park NSW for A$71 million.
Anchored by Macquarie University’s School of Engineering, the fully leased site comprises 7,156 sqm of office and warehouse accommodation on a 1.5 ha site. The property is located immediately adjacent to the Macquarie Park Train Station.
Located in Sydney’s strongest suburban office market, the asset also sits within the Macquarie Park Incentive Precinct which has been earmarked by the NSW Government to be accelerated as a key economic and innovation precinct.
Over the long term, ESR Australia is planning a staged redevelopment of the site into A-Grade office buildings.
Phil Pearce, CEO of ESR Australia, said, “This landbank investment offers exponential opportunity as it provides holding income to allow a staged redevelopment. The area is well placed to capitalise on the changing office landscape with an increase in demand for decentralised office space since the COVID19 pandemic.”
“We see business park assets as complementary to our core strategy of logistics and industrial property. We’ve strong capability in the development and management of business park space and are pleased to add this strategic asset to our portfolio,” added Pearce.
”The COVID-19 pandemic has accelerated the shift towards a more diverse office market. There is rising demand for suburban office space as businesses either decentralise away from CBDs or transition to a hub and spoke model with a central location plus office space in suburban areas,” said the company in a statement.
Macquarie Park is the third largest office precinct in Sydney, and the strongest suburban office market. ”The precinct is ideally situated to service this demand, both from an accessibility and cost effectiveness perspective. The area is well connected to major arterials and public transport, with a wide array of amenity,’2 said in the statement.