UniSuper JV makes land purchase near Western Sydney Airport

A joint venture between UniSuper and ISPT has acquired a 280-hectare logistics development site inside the Western Sydney Aerotropolis, estimated to be worth over $3.9 billion once completed. 

The property, located “immediately adjacent to the entrance to the new Western Sydney International Airport (WSA)”, will be developed into a manufacturing, warehouse and logistics site of over 400,000 square metres of Gross Floor Area (GFA) across the next seven years.

A statement from the super fund, the property investment manager and the acquisition negotiator, Richmond Bridge, said the estate will seek to deliver over 800,000 square metres of GFA (subject to planning approval) in line population growth, e-commerce development and development of the WSA precinct. The site will also aim to achieve carbon neutrality when it is completed.

“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. It is distinguished not only by its scale but by its strategic positioning within the Northern Gateway precinct of the Western Sydney Aerotropolis,” Senior Manager, Property at UniSuper, Nick Stephens, said.

“Once developed, the property will be well positioned to leverage its prime location and maximise value for UniSuper members. The transaction highlights UniSuper’s ability to secure premium, unique investments off-market that help our members grow their retirement savings. It is a testament to UniSuper’s in-house capability and position that we are amongst only a handful of investors in Australia with the scale and execution capability to do a deal such as this.”

UniSuper’s half of the investment will be managed by Richmond Bridge, while ISPT’s 50 per cent stake will be self-managed.

“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,” Will Walker, Chief Investment & Development Officer at ISPT, said.

“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.”