This article is from the Australian Property Journal archive
AUSTRALIA’S seventh largest superannuation fund UniSuper and ISPT have acquired 280 hectares of controversial greenfield industrial development land next to the entrance of the under-construction Western Sydney International Airport, where they will build a $4 billion logistics estate.
The Burra Park site is the largest parcel of Enterprise zoned land within the Western Sydney Aerotropolis region and will be progressively developed, with the first stages to take over seven years and deliver 400,000 sqm of floor area. In the long run, the 50/50 joint venture partners envisage the estate could deliver over 800,000 sqm of gross floor area.
“The site is poised to accommodate a diverse and complementary range of occupants given the strategic importance of this location,” they said.
Western Sydney Airport will begin operating in 2026.
Australia’s boosted migration program will mean Sydney requires 3.6 million sqm of industrial and logistics floor space by 2031, with the Aerotropolis precinct to “ultimately relieve most of Sydney’s future land pressure challenges”, according to CBRE.
The Burra Park land was offloaded by Roberts Jones, which gained prominence in 2021 when it picked up 344 hectares of land around the airport for $499.95 million from the Medich family. The land had previously appeared set to be put into the hands of BHL, which had planned an industrial, health and shopping centre precinct that would deliver 38,000 jobs and $14.3 billion to the region’s economy, to be developed by a consortium that included Western Sydney University, Westfield shopping malls owner Scentre Group, and surgeon Charlie Teo. BHL was once linked with Roberts Jones.
Roberts Jones went about carving up the land, selling a slice last year to CDC Centres for $150 million and another 24 hectares to global logistics giant DHL for more than $140 million.
It had its own development plans the 280 hectares it retained, submitting a State Significant Development Application with the NSW government for an industrial and logistics estate in late 2022.
The planning framework for the 6,500-hectare Aerotropolis precinct was finalised in November of 2022.
“Best industrial development site in Australia”
The acquisition was negotiated on behalf of the purchasers by real estate investment management firm Richmond Bridge. UniSuper’s investment in the joint venture will be managed by Richmond Bridge, while ISPT’s interest will be self-managed.
“This is a super-prime institutional grade industrial property asset in Sydney’s tightly held western industrial precinct, adding to UniSuper’s $8 billion unlisted property portfolio,” said UniSuper’s senior manager, property Nick Stephens.
“It is distinguished not only by its scale but by its strategic positioning within the northern gateway precinct of the Western Sydney Aerotropolis.”
Will Walker, chief investment and development officer of, ISPT said Burra Park represents the single largest landholding within the NSW government’s “ambitious Western Sydney Aerotropolis precinct and, given its strategically significant location, will be sought-after by organisations looking to invest and operate in this region that is set for major economic growth”.
“Alongside our partners UniSuper and Richmond Bridge, we are committed to delivering a world class industrial precinct with tier-one sustainability credentials that will support the ongoing development of Western Sydney over the long term.”
“This transaction demonstrates ISPT’s strong conviction in the industrial sector driven by the ongoing demand for prime-grade stock and our capability to transact on strategic assets for the benefit of our investors and their members”.
Pete Wylie of Richmond Bridge said, “We believe this is the best industrial development site in Australia and will benefit from the enormous amount of infrastructure investment occurring in the Aerotropolis precinct”.
In September, logistics giant ESR spent $70 million on a Badgerys Creek development site in its first move into the Aerotropolis precinct, where it will deliver a $270 million industrial estate.
A recent Cushman & Wakefield survey revealed that 86% of investors favour the Australian logistics and industrial market over other commercial property sectors, ahead of debt markets and alternative assets, with $45 billion of capital circling warehouses and sheds down under.
One in two respondents confirmed that the gap in purchaser and vendor pricing expectations prevented capital deployment in 2023. Now, almost nine in ten plan to invest in Australian logistics and industrial assets in 2024.
