Last site at Gore Hill industrial estate announced to the market
The final site at the Gore Hill estate on Sydney’s Lower North Shore has been announced to the market.
It is being offered by Knight Frank’s Matthew Lee and Arland Domingo, in conjunction with GJS Property’s Chris Bailey, on behalf of Lindsay Bennelong Developments.
Located at Lot 3 Broadcast Way in Gore Hill, the 3,840 square metre site has DA approval for a 13,998 square metre fully designed and engineered data centre facility.
Upon completion the fully engineered data centre is tipped to sell for circa $100 million or lease on market terms.
According to Knight Frank’s Matthew Lee, Partner, Head of Industrial, NSW Lot 3 Broadcast Way is the last piece of the Gore Hill estate available and represents a rare opportunity to acquire or lease a completed, engineered data centre.
"Following expansive take up across the colocation and wholesale markets we have seen a surge in demand for data centres from both owner operators and providers," Lee said.
"Recognising this demand, Lindsay Bennelong Developments acquired approval for a four-level data centre with market leading power, fibre and connectivity suitable for a variety of uses. Construction will commence in the coming months with a delivery in 2020.
“As the only new dedicated commercial precinct on the Lower North Shore capable of delivering a data centre so close to North Sydney and the Sydney CBD we expect it will attract strong interest from owner-occupiers and tenants.”
Sydney’s combination of a unique geographic situation and mature economy are the driving forces behind a growing data centre market, according to Jabez Tan, Head of Research, Data Centres at Structure Research.
“Similar to other mature markets in the Asia-pacific region, Sydney is a magnet for hyperscale cloud and this is even more crucial for Australia from a latency and performance standpoint given its geographic isolation from the rest of Asia," said Tan.
“Getting closer to end users and an increasingly strict data sovereignty regime makes in-country infrastructure a must-have. This should keep data centre demand in Sydney steady with all of the larger technology uptake indicators healthy.
“Sydney continues to be the primary gateway location for international firms to access the Australian market from a connectivity standpoint and for Australian enterprises to access international markets. Growing usage in social media platforms, content and streaming, online gaming and mobile apps is expected to translate into increased demand for data centre capacity.”
Chris Bailey, Director at GJS Property, said the area was already home to Fox Sports, ASX Data Centre and Chief Entertainment.
"The Gore Hill estate is ideally located within close proximity to Pacific Highway with extensive current and future public transport links,” said Bailey.
“Following the successful sale of Lot 6 last year by GJS and Knight Frank we are excited to bring Lot 3 to market in what is an exceptionally rare offering. This site will be able to deliver a ‘live’ data centre in 18 months so for providers that cannot accommodate the current demand Lot 3 could be their perfect solution to capture the market.”
The Department of Planning and Environment recently unveiled a 20-year plan for the region, which includes a new metro station for Crows Nest as part of the $20 billion Sydney Metro. This vision will create a major employment and housing hub on Sydney’s Lower North Shore, running from Macquarie Park to the Sydney CBD.
Gore Hill is within easy access to Sydney’s domestic and international airports, and is within close proximity to the Gore Hill Freeway which links the M2, M7 and M5 motorways. The site is two kilometres from the new Crows Nest train station being developed, and an eight minutes’ walk from the existing St Leonards train station.
Lot 3 Broadcast Way, Artarmon, is for sale or lease via expressions of interest closing 4pm ESST, Thursday 21 March 2019.
