Australia: ESR to sell land acquired for data center in Sydney, Australia

Jul 08, 2024 | Posted by Abdul-Rahman Oladimeji

Industrial real estate firm ESR  is looking to sell 1.5 hectares at 44-50 Waterloo Rd, which it acquired in 2021 from an AMP Capital fund for AU$71m, and had been earmarked for a data center development. The parcel is currently home to two office and industrial buildings partly occupied by Macquarie University’s School of Engineering.

“The Sydney BTR supply continues to lag other national markets, with the sector having difficulty finding feasible sites en masse, principally due to the high land values and the strong competition from traditional build-to-sell projects,” said Colliers national director Guillaume Volz. “44-50 Waterloo Road offers the BTR sector an opportunity to acquire a site specifically targeted at institutional BTR operators, in an area with a strong demographic that will support the take up of the high-level apartment living.”

Another Colliers national director, Trent Gallagher, added: “This landmark development site represents the first build-to-rent opportunity of significant scale to be officially offered to the market for sale within the Macquarie Park precinct. The site’s corner location, three street frontages, and immediate access to rail will make it highly sought after by many astute developers.”