US game manufacturer snaps up last lease at $149m Sydney site
Zero vacancies remain at the $149 million Horsley Park industrial estate in Western Sydney, after a US game manufacturer acquired the final lease in April.
Frasers Property Industrial in Australia secured a 10-year lease with Crown and Andrews – a subsidiary of Dutch-owned Goliath Games, one of the largest game manufacturers in North America. The leased facilities will comprise 9,080 sqm of warehousing space; a 650sqm office and a dedicated truck loading area.
Crown and Andrews will join Japanese vehicle manufacturer Hino and US retail giant Williams-Sonoma at the precinct, which is scheduled for practical completion in mid-2021.
Ian Barter, general manager – northern region for Frasers Property Industrial, said the international investment in Horsley Park was a “vote of confidence” in Australia’s industrial operations and economic stability.
“It’s seen as a safe investment haven down here. Industrial is the one sector that had a light shone on it during COVID; it’s mission critical. People need it to provide sectors with their goods and services and people are starting to realise that,” Mr Barter said.
“With the rise in e-commerce and need for robust global supply chains, it’s vital that our development pipeline caters for both the current needs and future growth of our customers.”
Mr Barter said the diverse range of tenants’ operations – including a water manufacturing plant by North American company Nu Pure – “shows growth off the back of what’s happening in the Australian market” and would have knock-on benefits for Western Sydney.
“All [tenants] will be increasing their footprint, employing more people and ancillary businesses like cafes, truck drivers. There will be a huge influx of employees into the area, seeing business and employment growth in Western Sydney – and for those living in the area,” he said.
REA Group economist Anne Flaherty pointed to Horsley Park’s proximity to the Badgerys Creek airport development as another strong driver for industrial and e-commerce operations in the region.
“The industrial sector specifically has been Australia’s best-performing, lower-risk asset type and seen yield compression over the last year – which speaks to strong demand in the sector,” Ms Flaherty said.
“The big rise in consumption spend online has increased the demand for warehouses to store goods. Horsley Park is relatively close to the new airport development zone in Western Sydney, which is a great location for distribution and efficiency.
“That’s an area that will see really strong population growth.”
The Horsley Park facilities will be built to achieve a 5 Star Green Star rating, including a rooftop Solar PV system.