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DHL secures $83 million custom pharmaceutical distribution facility in Western Sydney

DHL Supply Chain and ESR Australia have entered into agreements to develop a new state-of-the-art$83 million warehouse and distribution facility in Western Sydney which DHL will lease for 10 years from this October.

The joint development arrangement with DHL Supply Chain will see ESR Australia deliver a highly customised facility. Due for completion in late 2021, the development is a temperature-controlled warehouse intended for the storage and distribution of pharmaceutical products, including medical supplies and machines.

The facility is set for ESR Bringelly Road Business Hub with circa 36,000 sqm gross floor area on an approximately 70,000 sqm site.

“We’re delighted to be partnering with DHL Supply Chain on this development and look forward to welcoming them to the state-of-the-art facility at completion of the project scheduled for October 2021. This project is further validation of our ability to devise bespoke solutions for our customers,” Phil Pearce, CEO of ESR Australia, said.

“We’re seeing increasing demand for temperature-controlled facilities to cater for perishable and sensitive products. In particular, enquiries from pharma and food-related industries are on the rise. This is a trend we expect to continue, along with the demand generated by the ecommerce boom.”

Saul Resnick, CEO of DHL Supply Chain Australia, said DHL is excited to be investing alongside ESR Australia in a new life sciences and healthcare grade warehouse facility for its medical device customers.

“This central, purpose-built facility will consolidate select existing and new customers under one roof. Improved, direct connections to major capital cities will save time on deliveries to hospitals, medical centres and wholesalers,” Saul said.

“Our patient-centric delivery model is important to our customers’ customers. Greater efficiencies will be found through automation, combined transport and warehousing solutions and dedicated product repair services. Repair centres built within the facility provide a seamless experience for our customers which in turn will directly benefit patient outcomes,” Michael Gardner, Vice President of Life Sciences and Healthcare, DHL Supply Chain, said.

The property will be owned in the long term by ESR Australia Logistics Partnership (EALP), an 80/20 joint venture between GIC and ESR Australia, taking EALP’s gross assets to $1.2 billion upon completion.

ESR Australia has proven experience in developing temperature-controlled and cold storage facilities, including projects delivered for Symbion, API, RAND, Coles, Calendar Cheese and Laverton Cold Store.

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