Buxton scion to build $80m mega shed for US glass bottle maker
An artist impression of Owens-Illinois' new warehouse in Penrith. Photo: Supplied

Buxton scion to build $80m mega shed for US glass bottle maker

Charlie Buxton, the son and nephew of Financial Review Rich Lister developers Andrew and Michael Buxton, has struck a deal to build an $80 million mega-shed for glass bottle maker Owens-Illinois.

The 50,000 square metre warehouse, to be built in Penrith next door to O-I’s existing manufacturing plant, marks the first Sydney development for Mr Buxton’s Melbourne-based Cadence Property Group.

Construction of the giant shed – bigger than two-and-a-half Melbourne Cricket Grounds – is due to kick off in September after being approved by Penrith City Council in June and will take 10 months to build.

O-I, a Fortune 500 company with headquarters in Ohio, has agreed to lease the new warehouse for an initial 10 years.

Mr Buxton’s Cadence will retain the completed building as an investment with plans to undertake further projects in Sydney.

Rents were not disclosed but are understood to have been struck at market rates. These average $137 per square metre for super prime Sydney warehouses.

“It will be our biggest single asset and our biggest property by size,” Mr Buxton told The Australian Financial Review.

Mr Buxton said Cadence spent about 12 months working with O-I on securing the site and designing the facility, which will include automated material handling equipment.

Cadence acquired the site at 128 Andrews Road from New Zealand’s Fletcher Building Company.

“Our team has worked very closely with O-I to put the deal together and help them realise their vision to bring their warehousing on site,” he said.

He said large-scale occupiers were increasingly looking for purpose-built warehouse and logistics facilities to generate cost savings through consolidation and operational efficiencies.

Charlie Buxton is aiming to set up a syndicated funds management business focusing on older office and warehouse spaces with rejuvenation potential.

O-I project manager Denis Conway said the proximity of the warehouse to the manufacturing plant would have some positive effects, including reducing its transfer costs.

“From a sustainability perspective it will lower our carbon footprint, with less transport required,” Mr Conway said.

O-I has manufactured glass from a facility on an adjacent site since 1971, employing about 250 people.

It produces more than four million glass bottles and jars a day to be distributed to breweries, wineries and food operators.

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