Stockland ties up deal for $3.5bn Sydney industrial precinct with tycoon John Boyd

The golf course site, which sits next to Sydney Airport, will become one of the city's largest logistics precincts after property developer Stockland secured a landmark $3.5bn joint venture deal.

Artists impressions of a proposed development by Stockland and John Boyd Properties at Kogarah, Sydney.

Property developer Stockland has struck a joint venture with John Boyd’s company to redevelop the Kogarah Golf Club site into a $3.5bn logistics precinct after the NSW government rezoned the site.

The deal locks in logistics as one of the hottest areas of property as big institutions are readying for the next wave of growth and are keen to secure sites that can sustain next generation multi-level warehouses which draw on the latest technologies.

Stockland’s move to set up the partnership will transform its pipeline of industrial projects, as it will become one of the largest hubs in Sydney. The Australian reported last December that the listed company was in talks with John Boyd Properties about forming the partnership to develop the huge site on the Cooks River next to Sydney airport.

Kogarah Golf Club in Sydney. Picture: Supplied

The scheme will see the once-controversial Cooks Cove site developed into a sprawling e-commerce warehousing precinct in the shadows of the busy airport. The property veteran is well-known in business and social circles and was a friend of the late Kerry Packer. He is best known for putting together the site that became the Liberty Place in the Sydney CBD, which also included an opulent penthouse that ranked one of the city’s most expensive.

The Stockland and John Boyd Properties joint venture plans to develop a multistorey logistics hub with an end value estimated at more than $3.5bn and up to 340,000sq m of floor space designed for aviation-linked logistics, high-value freight like medical, technology and perishable goods, and last mile distribution.

The site is adjacent to Sydney Airport and close to Port Botany – two of Australia’s most critical infrastructure gateways – as well as major arterial roads including the M1, M5, M8 and the future M6.

Works on the logistics precinct are expected to start in 2027, subject to planning and internal approvals, and will be delivered over multiple stages.

Stockland chief executive Tarun Gupta said the site presents a unique opportunity to create a landmark logistics precinct that will transform the freight and logistics sector in NSW.

“Our partnership with John Boyd Properties is focused on creating a state-of-the-art logistics hub that drives investment, jobs, and productivity outcomes to position Sydney as a global trade gateway location,” Mr Gupta said.

“The project will demonstrate how multistorey logistics facilities can generate significant economic outcomes by better servicing freight infrastructure, major road networks and transport links, in turn attracting domestic and global freight and supply chain operators to the precinct,” he said.

“A modern and robust freight system that supports population growth while balancing sustainable operations is critical to our economy. The unlocking of this site by the NSW government helps to address Sydney’s growing need for industrial land in a location with immediate connectivity to air, sea and road networks, maximising the efficient flow of goods around the state,” Mr Gupta said.

Mr Boyd said the partnership brings together both companies’ deep expertise to deliver on the vision for the city-shaping logistics precinct. “Together, Stockland and John Boyd Properties have extensive experience in owning, funding, developing and managing property, and our expertise enables us to create an economically significant logistics precinct near Sydney Airport,” he said.

“This is a project that will carry a strong legacy and capitalise on Sydney’s growing trade volumes, increased e-commerce activity and demand for sustainable, high-performance logistics assets,” he said.

The developers will chase top local and global tenants, solidifying the precinct’s ambition to set a new benchmark for design and delivery. The new logistics precinct is expected to incorporate solar power, energy efficient design features, and EV charging infrastructure, as well as include automation, robotics and AI-driven warehouse management.

Stockland has made logistics a key area of expansion. In February, it closed deals worth about $800m in total, resulting in US private equity house KKR and British funds giant M&G Real Estate joining it as partners in growing its logistics operations.

The listed developer is teaming with M&G on a major Sydney ­facility and will partner with KKR on new projects in the sector, with the initial focus also on the gateway city.

Originally published as Stockland ties up deal for $3.5bn Sydney industrial precinct with tycoon John Boyd