This paper proposes a strategy for optimal integration of battery energy storage systems (BESSs) to improve the load and DG hosting ability of the utility grid. An effective tool that determines the optimal location, capacity and day-ahead operation strategy for deployment of distribution network operator (DNO) owned and controlled BESSs is presented. It is a cost based multi-objective optimization strategy that considers two primary factors; distribution system cost and battery linear cycling cost. Quantitative analyses on the benefits and trade-offs of BESS installations and management are carried out considering different service options. The performance of the proposed multi-objective control is also compared with single-objective optimization strategies that target the exclusive control of voltage regulation, loss reduction or demand curtailment and peak reduction. Results show optimal integration of BESS can realize maximum operational and cost benefits while effectively elevating the load and distributed generation (DG) hosting capability of the network. The single- and multi-objective control methods are developed using a predictive optimization approach using an improved interior-point algorithm. Simulations are conducted for an LV distribution network in Western Australia studied during the Perth Solar city Trial.