Stockland nabs Waterloo estates deal amid housing crunch

Property developers are getting back into large-scale housing developments to address the housing crisis. But they are taking very different approaches.

An artist’s impression of the renewal of Waterloo estates.

Listed property companies are stepping up and backing solutions to the housing crisis, with residential giant Stockland signing a multibillion-dollar deal to transform Sydney’s Waterloo estates.

That transaction, alongside consortium partners Link Wentworth, City West Housing and Birribee Housing, will see it develop more than 3000 homes, including an affordable component.

The developer beat interest from a rival consortium led by Lendlease.

The job involves revamping the 1970s public housing estate into an apartment precinct. It will become a key part of the city’s response to the housing crisis due to its huge scale.

Half of the homes will be social and affordable housing, with more than 1000 new social homes and 600 affordable homes in the heart of Sydney.

Birribee Housing will lead housing allocations to ensure 20 per cent of social homes and 15 per cent of affordable homes are dedicated to Aboriginal and Torres Strait Islander residents.

The move represents Stockland’s return to the large-scale apartment market under chief executive Tarun Gupta. He was previously at Lendlease, which has a strong apartments business and is pushing back into the local market after heavy losses overseas.

Stockland said it had finalised contractual negotiations to undertake the development of the Waterloo Renewal Project with Homes NSW.

Stockland CEO Tarun Gupta. Picture: Jane Dempster

The project is expected to be delivered over multiple stages, with works expected to start in 2027, subject to all relevant planning and internal approvals.

Mr Gupta said the project was in keeping with its legacy. “Building on our 73-year legacy as a leading creator and curator of connected communities, we look forward to working with Homes NSW, our partners, and the community to deliver vibrant and inclusive spaces with high-quality homes for all the residents,” he said.

GPT, meanwhile, has been offloading sites to developers keen to build housing, which is outside its remit. It has settled the sale of two adjoining sites to Asian-backed developer Freecity for a total of $90.88m.

It is capitalising on the future potential in Sydney Olympic Park as works for the new metro station get under way. Located at 3 Figtree Drive and 6 Herb Elliot Ave, the sites total 21,302sq m land area with a development potential of close to 77,000sq m.

The properties were sold off-market by RWC’s Peter Vines, Victor Sheu and Ian Hetherington. They currently feature industrial and office usage, but Mr Vines said the sites had potential for residential, build-to-rent, and retail and hospitality.

The sites adjoin the new Sydney Olympic Park metro site which is due to open in 2032. “We’re seeing increased demand for well-located properties in higher value areas within close proximity to the future metro,” Mr Vines said.

“The new metro station will fully unlock Olympic Park as it is ideally situated between the Sydney CBD and Parramatta CBD,“ Mr Vines said. “Because of its lack of transport connection Olympic Park has been undervalued, but with the new metro station just seven years away, developers and investors are starting to realise its potential.”

GPT last year dumped plans for major office skyscrapers in North Sydney and Parramatta, agreeing to sell the sites to Freecity, which has since proposed residential and hotel projects. Those deals saw it sell off the properties, which were held in its flagship GPT Wholesale Office Fund, for about $219m.