Cryosite Limited has inked a deal to acquire a strategic freehold warehouse in Auburn, NSW, doubling its storage capacity and positioning itself for significant growth in clinical trial logistics.
- Acquisition of 2,121 sqm freehold warehouse in Auburn, NSW
- Storage capacity to more than double, easing current facility constraints
- Purchase price of $9.5 million, below market comparables
- Funding through cash reserves and new debt facility from a major Australian bank
- New site to enable expanded services and dual-site compliance for pharmaceutical clients
Strategic Expansion Amid Growing Demand
Cryosite Limited (ASX – CTE), a specialist in clinical trial logistics, has taken a decisive step to support its expanding operations by acquiring a freehold warehouse facility at 100 Adderley Street West, Auburn, NSW. This move comes as the company’s existing South Granville site nears capacity despite recent expansions, signaling robust demand for Cryosite’s specialised storage and distribution services.
The new facility, spanning over 2,100 square meters, will more than double Cryosite’s usable warehousing space, providing critical relief to capacity bottlenecks and enabling the company to accommodate growing client needs. The location’s proximity; just 15 minutes from the current site; and excellent connectivity to major transport corridors and airports further enhance operational efficiency.
A Rare Freehold Opportunity in Sydney’s Inner West
Freehold industrial properties in Sydney’s Inner West are scarce, with most options limited to leasing. Cryosite’s acquisition secures long-term tenure and strategic control over its operations, a significant advantage in a sector where stability and compliance are paramount. The purchase price of $9.5 million represents a discount compared to recent comparable sales, underscoring the financial prudence of the deal.
Funding for the acquisition will come from a combination of existing cash reserves and a new debt facility arranged with one of Australia’s 'Big Four' banks on highly competitive terms. While near-term financials will reflect additional holding and interest costs, the company anticipates revenue growth as the new site becomes operational.
Operational and Growth Opportunities Ahead
The Auburn facility is well-suited to Cryosite’s complex storage requirements, featuring high clearance ceilings, dual roller doors, and infrastructure to support backup power. Plans include relocating the liquid nitrogen tank farm to the new site, freeing up space at the existing facility for expanded cold and ultra-frozen storage, secondary packaging, and clinical trial product handling.
Moreover, the new warehouse opens avenues for additional revenue streams such as medical device storage and short-term leasing to industry partners. Importantly, establishing a second licensed site supports dual-site compliance, a critical factor for international pharmaceutical clients requiring robust business continuity.
Completion of the acquisition is expected by late November 2025, followed by fit-out and regulatory licensing updates. Cryosite’s Executive Director Andrew Kerr highlighted the strategic importance of the acquisition, emphasizing its role in meeting rapidly expanding demand for specialised clinical trial storage in Australia.
Bottom Line?
Cryosite’s warehouse acquisition marks a pivotal step in scaling operations and securing long-term growth in a competitive market.
Questions in the middle?
- How quickly will Cryosite activate the new facility to start generating revenue?
- What impact will the new debt facility have on Cryosite’s financial leverage and credit profile?
- Could Cryosite pursue further acquisitions or expansions to maintain growth momentum?