Going up: Westfield owner Scentre Group flags housing push amid crisis

The owner of the Westfield empire is planning to take a greater role in solving the country’s housing crisis by using airspace above its centres and on surrounding land for accommodation.

A NSW government masterplan could allow for 53-storey towers at Westfield’s Hornsby centre. Picture: AAP

The owner of the Westfield empire has signalled that it is planning to take on a greater role in helping solve the country’s housing crisis by using airspace above its centres and on surrounding land parcels for accommodation.

The move by the powerful Scentre Group is designed to get the best out of existing infrastructure that surrounds many centres and will help governments contain the rising population in areas that are already well-served.

Scentre chief executive Elliott Rusanow is betting on planning reforms around the nation opening the way for the company to make more intensive use of its massive sites, with it likely to propose towers at key locations.

“Our portfolio of 42 Westfield destinations located throughout Australia and New Zealand incorporates 670 hectares of land holdings,” he said. “Our Westfield destinations are integral to the community and are located in and around existing civic and transport hubs – places where densification is already occurring,“ he said.

“These substantial land holdings, when combined with their strategic locations, have the potential to be part of addressing the housing supply issues in both countries. We expect this will provide the group with significant long-term growth opportunities,” he said.

The country’s shopping centres are often on relatively under-utilised sites, with low-rise car parks, and the centres can accommodate new towers.

A series of planning changes around the country designed to boost housing supply around transport nodes, as well as better conditions for the company’s main shopping centre business, is opening the way for Scentre to accelerate its plans.

The company is effectively working on ways to boost the value of its holdings around all of its centres, as most are near key infrastructure which has become a focus for governments.

The shift capitalises on Scentre’s vision for the properties as hubs of community life, which has seen it drive up foot traffic in the wake of the pandemic and provide services in childcare, heath and education through the centres, as well as traditional shopping.

Scentre Group chief executive Elliott Rusanow.

The Minns government has just confirmed the masterplans for its Transport Oriented Development Acceleration Precincts across Sydney.

These cover Scentre’s land at Westfield Hornsby and could allow for towers of up to 53 ­storeys.

A scheme could include about 2300 units and generate more than $230m value in air rights if Scentre sold them to another developer, according to Morgan Stanley analysts.

“We welcome the NSW government’s zoning changes which are designed to boost and accelerate housing supply in places where people want to live,“ Mr Rusanow said.

“The announcement regarding Westfield Hornsby is an example of this potential and we expect to pursue similar opportunities at many of our destinations throughout Australia and New Zealand,“ Mr Rusanow said.

The Scentre chief executive emphasised that the shopping centre company was moving deliberately to get the best out of its sites at a time when governments nationally were trying to boost housing supply.

The company is already advancing plans for new towers at Westfield Eastgardens and has a commercial scheme at Westfield Parramatta.

It is still in the planning stages for most projects. It has the capacity to develop itself or with specialist apartment companies, depending on the sites.

Scentre’s willingness to work on its properties has been welcomed by governments as they also look for ways of putting more housing into key suburbs and regional hubs rather than focusing only on inner city areas.