BREAKING NEWS: Stockland has just announced plans for a massive $3.5 billion multistorey logistics hub on the former site of Kogarah Golf Club in Sydney’s southern suburbs. This urgent development is set to revolutionize the transport of goods, directly servicing Sydney Airport and Port Botany.
In a significant move that underscores a shift in focus towards industrial properties, Stockland has entered a joint venture with John Boyd Properties to create a colossal 340,000-square-metre facility. Construction is scheduled to commence in 2027, with multiple buildings being developed in stages. Stockland CEO Tarun Gupta emphasized the project’s scale, stating it will require “billions of dollars” in investment.
The logistics hub is expected to generate approximately 4,500 direct and indirect jobs upon completion, addressing both economic and employment needs in the region. Gupta highlighted the importance of balancing housing demands with job creation, stating, “There will be a big ecosystem of economic activity that will come out of the distribution and the logistics hub that this will create.”
While Stockland will initially self-fund the project, they anticipate bringing in capital partners such as KKR and M&G Real Estate as planning progresses. Analysts are closely watching how the company manages its funding strategy, especially given its current gearing of 27.9 percent, which is nearing the upper limit of its target range.
The Commonwealth Bank of Australia is acting as the sole underwriter for this ambitious project. George Vallas, head of real estate at CBA, praised the initiative, highlighting its potential to enhance exposure to high-quality logistics assets in a prime location.
The logistics facility will occupy only a fraction of the former golf course site, with local authorities planning to develop a new 14-hectare public park named Pemulwuy Park. This park will restore public access to the Cooks River, which has been closed off due to the golf course, and will include cycling and walking paths.
Bayside Council Mayor Edward McDougall hailed the project as a significant step forward for the community, bringing much-needed economic opportunities and job creation. “This proposal represents a fresh chapter for Bayside,” he said.
Stockland’s shares reacted positively to the announcement, trading up 3.5 cents to $5.44 on the Australian Securities Exchange. The company is set to report its full-year results on August 20, with investors keen to learn more about their financial strategies moving forward.
As Sydney continues to face a critical shortage of urban infill sites, this logistics hub represents a vital step towards meeting the region’s growing trade volumes and e-commerce demand. Gupta concluded, “The site is naturally more suited for that use because of its proximity to major freeways and the road network that’s been built. That’s the best use for this site.”
Stay tuned for more updates on this developing story as it unfolds.
