Private investor lands Aerotropolis development site

WESTERN Sydney Aerotropolis continues to land investor interest as a development site sells for more than $30 million to a private investor.

The 10-hectare property, located at 869-885 Luddenham Road in Luddenham, consists of one freehold title, featuring 180 metres of frontage and flexible enterprise zoning, allowing for a number of uses.

Mark Litwin and Grant Bulpett from Knight Frank negotiated the deal via an expressions of interest campaign on behalf of vendor, the Sydney Society of Model Engineers, who held the site for 50 years.

“This property was sold during the COVID lockdown and despite ongoing rezoning issues in the area, demonstrating the quality of the asset,” said Litwin.

The site is placed only three kilometres from the Western Sydney Airport main entrance and the M12 Motorway entrance.

“It is one of the last large format blocks in the Northern Gateway Precinct of Aerotropolis, which has emerged as the pre-eminent precinct for sophisticated developers and land investors alike, due to the large site areas, and resultant limited acquisition opportunities,” added Litwin.

Litwin described the property as a super-premium site, with its positioning in the Northern Gateway Precinct and its expansive area that is relatively flat and includes a significant ratio of development land.

“It also had limited possible detrimental influence from proposed planning outcomes, making the reward more attractive than the risk for buyers. The site is totally unencumbered by riparian constraints, which make it one of a kind,” said Litwin.

Back in March, nearly 350 hectares of land sold for $500 million to be developed into an industrial, health and shopping centre precinct, by the new airport.

“Each time Government makes an announcement about planning or infrastructure, some buyers leave while new buyers enter the market. Increasingly we’re seeing boutique and institutionally managed money participate, and that money hasn’t been active in these large parcels before,” said Bulpett.

The state government of NSW in June announced plans to invest $1.15 billion into the Bradfield City Centre, within close proximity of the new $5.6 billion Western Sydney International Airport.

“We struck a perfect balance with the marketplace on this site, getting that really premium financial outcome over the settlement period that a site like this deserves,” concluded Bulpett.