This article is from the Australian Property Journal archive
PROPERTY giant Charter Hall will deliver the first stage of the Western Sydney International Airport (WSI) business precinct, which will bring 40,000 sqm of warehousing, offices, a 150-room hotel, and food and beverage to the Aerotropolis.
WSI CEO Simon Hickey was joined by Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King and Charter Hall and logistics CEO Richard Stacker to turn the first sod at the business precinct site earlier today.
Businesses are now formally invited to join the greenfield site.
Stage one is expected to generate 400 jobs during construction, with another 2,000 permanent jobs anticipated once it’s fully occupied and operational.
“This is an exciting time for all kinds of businesses to join our new business precinct that’s geared to grow and evolve over time as the airport builds to ultimately become Sydney’s biggest international gateway,” Hickey said.
Building of the precinct will begin of over the coming months, he said, with the first phase of works due for completion by the end of next year. The airport expects to welcome passengers and airlines in late 2026.
Upon completion, the 20-hectare mixed-use development will include up to 40,000 square metres of modern warehouse space, ancillary offices, a 150-room hotel that will service flight crews, a service station and convenience retail, including food and beverage outlets, as well as gym and conference facilities. Construction of the first stage also includes internal and external roads, connections to arterial roads and landscaping.
Stacker said, “To achieve success in a project of this scale, a true partnership is crucial. We have a track record of aligning with our joint venture partners’ ambitions, and bring expertise in developing, owning and managing high-quality facilities that attract high-quality tenant customers, for the long-term”.
At the first Airport City Summit yesterday, Minister Paul Scully also announced expressions of interest had opened to appoint a development partner for Superlot Number One in the Bradfield city centre, which will have space for up to 1,000 homes, up to 16 buildings, commercial, childcare, education, research facilities and retail.
“Just a stone’s throw away from the Bradfield metro, this is the first opportunity for the private sector to get involved as a flagship partner in the development of the new city,” Minister Scully said.
More than 450 delegates from business, industry and the community attended the inaugural summit, which marked 1,000 days until the airport opens for business.
Yesterday’s announcements come one month after major super fund UniSuper and ISPT acquired 280 hectares of controversial greenfield industrial development land next to the Airport entrance, where they will build a $4 billion logistics estate. The Burra Park site is the largest parcel of Enterprise-zoned land within the Aerotropolis 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.
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”.
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.
Concerns over pace of development
Concerns have been raised by industry groups and private companies about the pace of planning and development in the Aerotropolis.
Groups believe time and money are now so low that the NSW government should slim down road infrastructure around the Airport, and that delays to the start of transport projects have stalled private development. In a submission to a parliamentary inquiry obtained by The Sydney Morning Herald this week, the Property Council’s western Sydney director, Ross Grove said proposed road add-ons such as footpaths and cycleways should be discarded.
“Nobody is going to hop on their bicycle with 20 kilograms of luggage to ride from Fairfield to Western Sydney Airport,” he said.
“Until we have an affordable road solution, international passengers to western Sydney will be landing on a runway surrounded by sheep paddocks and the occasional truck stop.”
Meanwhile, The Daily Telegraph reported earlier this year that retail giant Amazon had pulled out of discussions to lease a yet-to-be-constructed warehouse in the Mamre Road Precinct amid ongoing concerns about when the build would be completed.
