Australian pension fund UniSuper and property fund manager ISPT have on Wednesday announced they have acquired a Sydney airport site to build AUD 3.9 billion ($2.5 billion) logistics hub.
The duo said in a statement that they have acquired a 280-hectare greenfield logistics development site (Burra Park) in a 50/50 joint venture.
The property is located immediately adjacent to the entrance to the new Western Sydney International Airport (WSA).
It is noted that WSA is currently under construction, will begin 24/7 operations in 2026 and aims to eventually become Sydney’s largest airport.
As the largest parcel of Enterprise Zoned land within the Western Sydney Aerotropolis, the site offers unparalleled development flexibility and is primed to benefit from the region’s demographic and economic expansion, reinforcing its status as a premier logistics and industrial hub.
UniSuper and ISPT intend to progressively develop Burra Park with the first stages delivering a super prime manufacturing, warehouse and logistics estate of over 400,000 square meter (sqm) of gross floor area (GFA) over the next seven years, and an expected value on-completion of over AUD 3.9 billion (100 percent interest).
In the long run, the estate could deliver over 800,000 sqm of GFA with occupier demand supported by population growth, e-commerce and the growth in the WSA precinct.
The site is poised to accommodate a diverse and complementary range of occupants given the strategic importance of this location. The new estate will aim to achieve carbon neutrality upon completion.
UniSuper’s investment in the joint venture will be managed by Richmond Bridge while ISPT’s interest will be self managed.
This acquisition not only represents a significant milestone for UniSuper, ISPT and Richmond Bridge, but also signals a transformative phase in the development of land surrounding the new WSA.
“This is a super prime institutional grade industrial property asset in Sydney’s tightly held western industrial precinct, adding to UniSuper’s AUD 8 billion ($5.22 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,” UniSuper’s Property Senior Manager Nick Stephens said.
He said that once developed, the property will be well positioned to leverage its prime location and maximize 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,” he added.
Will Walker, Chief Investment and Development Officer from ISPT, said that Burra Park represents the single largest landholding within the New South Wales Government’s ambitious Western Sydney Aerotropolis precinct.
Given its strategically significant location, he said the site will be sought-after by organizations 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,” he added.
Pete Wylie of Richmond Bridge also said that they believed this is the best industrial development site in Australia and will benefit from the enormous amount of infrastructure investment occurring in the Aerotropolis Precinct.
UniSuper is one of Australia’s largest superannuation funds. The fund currently invests over AUD 130 billion ($84.75 billion) on behalf of more than 634,000 members.
It is noted that this asset complements other recent prime industrial property acquisitions by UniSuper in the warehouse and logistics sector.
UniSuper has a mandate with Richmond Bridge to acquire and manage a high quality directly owned industrial property portfolio.
ISPT is one of Australia’s largest unlisted property fund managers, with over AUD 21.5 billion ($14.02 billion) in funds under management.
With a focus on delivering sustainable, long-term returns, ISPT manages a diverse portfolio of property assets across various sectors, including retail, office, industrial, education, health, and life sciences.
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