SYDNEY: Australian pension fund UniSuper says it has bought an undeveloped site next to Sydney’s planned new international airport to develop a logistic hub worth around A$3.9bil (US$2.5bil), its second major property deal in three weeks.
The purchase, a 50:50 joint venture with unlisted property fund manager ISPT, marks the latest acquisition for UniSuper, which has roughly A$8bil invested in unlisted real estate.
The parties acquired the 280ha site adjacent to the entrance to the new Western Sydney International Airport, which is expected to begin operations in 2026. The terms were not disclosed.
UniSuper, which manages more than A$130bil, and ISPT intend to develop the site into a 4.3 million square foot manufacturing, warehouse and logistics hub over the next seven years, the fund said in a statement.
The parties raised the possibility of doubling the hub’s size in the future, subject to planning approvals and demand.
While office tower owners have seen property values plummet by double digits due to remote working and higher vacancies, industrial real estate has avoided this downturn on the back of strong demand for assets like data centres and eCommerce logistics hubs.
UniSuper last month paid A$260mil for an undeveloped site in Melbourne to develop a logistics hub worth more than A$1bil. — Reuters