Real estate giants ESR and Mitsubishi Estate Asia have extended their strategic relationship by launching a joint venture to build a prime industrial hub in Western Sydney, Australia.

The newly formed entity, called the ESR Huntingwood Development Partnership, will oversee the transformation of an 18.3-hectare site in the established Huntingwood industrial precinct. The planned development carries an estimated end value of approximately A$700 million. Work on the multi-stage project is scheduled to begin in the second half of 2026, with the initial phases targeted for completion from the second half of 2027 onward.

This agreement represents the second major collaboration between the two firms within a two-year window, following the launch of the ESR Pakenham Partnership in 2024. The project is designed to capitalise on intense occupier demand for high-specification industrial facilities across the Australian market.

Spread over three distinct development phases, the final estate will deliver up to 114,005 square metres of contemporary logistics and warehousing space. The asset features direct frontage and transit access to major transport corridors including the M4 Motorway and the Great Western Highway. The location is also positioned to benefit from proximity to the upcoming Western Sydney International Airport.

Western Sydney is currently experiencing historic lows in vacancy rates across its core industrial hubs, alongside a severe shortage of serviced development land. This joint venture directly supports the broader capital raising strategy of ESR, allowing the group to accelerate its development pipeline which currently exceeds A$10.22 billion across Australia and New Zealand.

Phil Pearce, President, ESR, said, “This is our second partnership with Mitsubishi Estate Asia in the past two years, and the Huntingwood investment is clear testament of the strength and momentum of this relationship. Huntingwood is a premium logistics site in one of Sydney’s most sought-after industrial precincts, and we’re excited to deliver a best-in-class estate alongside a partner who shares our vision for world-class developments in Australia’s key growth markets.”

Yosuke Matsunaga, Head of Australia at Mitsubishi Estate Asia, said, “We are confident that this partnership will further strengthen the relationship between ESR and MEA. Huntingwood offers everything we look for being scale, location, and a development partner with a proven track record. We look forward to delivering something exceptional here.”