Developers to chase Western Sydney Airport block

Big name companies are tipped to line up for a slice of the WSA as it wants businesses to shift in before plans start landing in 2026.

Artists impression of the planned business precinct at Western Sydney Airport.

Major developers are tipped to chase the first berth in the business precinct at the under construction Western Sydney Airport, which is putting it up for grabs in order to get building started before it opens to passengers in 2026.

The airport has put a major 13.25 hectare slab on the block which could sustain hundreds of millions of dollars worth of warehousing, with the potential for offices, a hotel, and medical and retail uses in future.

The move comes as sites around the airport sell at record rates and the valuable parcel could set new benchmarks. Big property companies are chasing airport land, although the initial deal is likely to be at a smaller scale than recent sales.

In October, funds manager Logos bought a parcel next to Sydney Airport from Qantas for $802m. There are now plans to develop a $2bn-plus logistics hub with the backing of partners AustralianSuper and Middle Eastern fund ADIA.

Dexus has also pushed deeply into logistics, including buying Perth’s Jandakot Airport as part of a $1.5bn portfolio it acquired in September.

The federal government-owned airport is looking for a development partner for what will be the first stage of its on-airport business precinct. The airport land will be well connected by the M12 Motorway, upgraded major roads and Sydney Metro-Western Sydney Airport line.

WSA chief executive Simon Hickey said the call for expressions of interest was the start of a once-in-a-generation opportunity to become a part of the airport community, in the heart of Sydney’s booming southwest, close to logistics centres, new infrastructure, housing developments and the developing Aerotropolis.

“Western Sydney International Airport is the catalyst for an incredible transformation across Western Sydney, including billions invested in new infrastructure and the creation of the new Bradfield city centre,” Mr Hickey said.

“This is a chance to get on board from the beginning and to grow with the airport and the region. The business precinct will eventually span around 200-hectares, which is about the size of the Parramatta CBD,” he added.

The new airport is selling its business precinct as being uniquely linked to 24/7 air operations, opening up opportunities as the existing airport is limited by curfews.

Mr Hickey said early development of the first stage of the business precinct created the opportunity for the development to support the burgeoning region, potentially including a hotel, retailers, medical facilities and other services needed to support the region’s growth.

With the potential for completion in 2023, the development could bring forward around 600 jobs, boosting employment generated by the airport years before the first plane lands.

“We’re offering a greenfield opportunity to not only be located on the doorstep of this unprecedented transformation, but to partner with us to help shape it and bring a combined vision to life,” he said.

The airport is on track to open to international, domestic and air cargo services in late 2026. Construction of the passenger terminal has kicked off with runway construction to begin next year.

Minister communications, urban infrastructure, cities and the arts Paul Fletcher said the $5.3bn airport was “at the heart of the bold vision for the Western Parkland City, directly connecting the region to the world, driving economic activity and jobs, and attracting investment and industry”.

“The new business precinct will present an attractive offering to businesses seeking to capitalise on this new global gateway,” he said.