CSR secures first sale of industrial land at Erskine Park in Western Sydney

CSR Limited announced today that it has enteredinto a conditional agreement to sell 17 hectares of industrial land at itsErskine Park site in Western Sydney to BlueScope Steel Limited.The transaction is subject to BlueScopeSteel obtaining development approval for a Colorbond®┬ásteel centreand CSR delivering necessary services to the site.

This transaction follows theannouncement in May 2004 by the Premier of NSW, Mr Bob Carr that a link roadwill be established to connect the Erskine Park Employment Area (EPEA) to theM7 freeway.This road infrastructurewill further accelerate development of employment opportunities in the Penrithregion.

Mayor of Penrith City DavidBradbury said this development in Penrith City was recognition that EPEA is anattractive place for business investment.

“Penrith City Council has beeninstrumental in making Erskine Park attractive to business by lobbying tosecure the link road to the M7.The Councilprovided up-front funding for lead-in water and sewer mains and worked withstate government agencies to ensure early provision of power and otherservices, in order to kick start the development of the EPEA,” CouncillorBradbury said.

“This announcement represents asignificant step forward in the Council’s pursuit of 6,000 to 8,000 jobs on theEPEA site.”

CSR Managing Director Alec Brennan commented, “CSR isvery pleased to have secured a major cornerstone investor in its industrialsite at Erskine Park.This transactionrepresents another significant step by CSR to generate value from thedevelopment or sale of its property assets.”

“CSR recognises the priority attached to expanding employmentopportunities in Western Sydney.CSRhas worked closely with Penrith City Council and state development authoritiesto meet BlueScope Steel’s requirements and will continue to work withauthorities to realise the value of its industrial land asset at Erskine Park,”Mr Brennan said.

CSR will be responsible for sitepreparation and road construction at its Erskine Park site prior to sale of the17 hectare property, which is due to become unconditional by September2005.CSR expects to receive a netreturn of approximately $125 per square metre after development costs for thesale of this property.

The 17 hectare site is part of a100 hectare industrial area within Erskine Park held by CSR. Approximately halfof the CSR site is ready for development with the other half being capable ofdevelopment, subject to regulatory approvals.The overall site will benefit from the infrastructure being built aspart of this transaction and it is expected the area will be developed over thenext three to four years.