ESR Australia breaks ground at new distribution facility for Clifford Hallam Healthcare in South Australia

1 November 2022

Construction has officially commenced at ESR Australia’s CH2 site in Edinburgh, marking the organisation’s first development project in South Australia. The asset, which is part of the $3.8b Milestone Logistics Portfolio acquired by ESR Australia from Blackstone in 2021, spans across 5,985sqm.

The site will be purpose-built for CH2 Australia’s leading integrated pharmaceutical and medical consumable distributor that has been serving the healthcare market for over 80 years.

The facility will be purpose-built for CH2’s requirements, which has outgrown its current warehouse in the ESR Goldsborough Industrial Estate, Pooraka housing over 13,500 SKUs. The customised build will incorporate
temperature-controlled storage.

The facility will house pharmaceuticals, medical devices, and consumables that CH2 will distribute to local and regional South Australian retail pharmacies, hospitals, aged care, and primary care through the dedicated
metropolitan delivery fleet of 14 vehicles.

The facility will include a 250sqm office, cool room, industrial freezer, car parking, push bike bays, a 15m canopy, 5 on-grade roller shutter doors and a 160KW rooftop solar system.

At the sod-turning ceremony, ESR Australia’s General Manager for Victoria and South Australia, Simon Sayers, noted the Edinburgh site will see CH2 move into a new facility that more than doubles their current footprint in
South Australia.

“It has been rewarding to continue ESR Australia’s partnership with CH2 and support their commercial goal of building a stronger local presence with this new site .”

CH2’s Chief Executive Office David Collins confirmed the new facility will be instrumental in facilitating CH2’s best-in-class logistics to its customers.

Mr Collins said, “We have experienced first-hand the substantial growth in retail pharmacy demand in recent years, as Australian consumers’ needs expand.

“This larger facility is paramount in ensuring CH2 stays ahead of the industry demand and ensuring our growing product range is housed in a safe and sustainable environment.

The facility will strengthen the relationships we have with our customers by ensuring daily deliveries and customer deadlines are met on time.”

The builders appointed are Ahrens, an Australia-owned construction company with over 1,000 employees.

Ahrens will bring its construction, engineering and fabrication expertise to the project.

The Edinburgh site sits within the $3.8 billion Milestone portfolio, which ESR Australia acquired in 2021, setting the benchmark for the most valuable property transaction in the nation’s history.

The facility is a 30-minute drive from Adelaide’s CBD, and is situated in a high-growth corridor. It is in close proximity to major road infrastructure including the Northern Expressway, the Northern Connector, Port
Wakefield Road and Salisbury Highway.

Notably, the site lies at the hub of interstate transport routes connecting Western Australia, the Northern Territory and the eastern seaboard, providing accessibility advantages and the associated transport cost
efficiencies to tenants.

The build is estimated to be completed in mid-2023.