Western Sydney airport takes off with Charter Hall as development partner for business park

The plans for a business centre at Sydney’s new gateway show that big companies are getting into the swing of airport development.

Western Sydney International Airport is partnering with Charter Hall on a new business precinct.

The new Western Sydney International Airport has tapped property group Charter Hall as its development partner on a major business precinct on the doorstep of the under-construction airport.

The long-planned precinct is a boost for the surrounding area, which has attracted a number of schemes ahead of the planned 2026 opening. But it has been bogged down by the pandemic and lengthy planning delays at the planned city near the new airport.

The business precinct will initially include warehouses and also a hotel that service the flight crews that are expected to congregate at the airport, which is set to be a 24-hour operation.

The airport has been billed as a springboard to Asia for fresh agricultural and seafood exports, as well as a hub for imported goods hitting key western Sydney markets.

Other property groups have been active in the area including Mirvac, which has a major warehousing estate planned, and superannuation funds, which have made the running and last month unveiled plans for a near $4bn industrial precinct near the airport.

In that play, the bulk of a parcel of land once owned by the Medich family near the under-construction Western Sydney Airport, which was once controlled by a Chinese-linked company, was sold to a pair of superannuation funds for about $850m.

The deal on the new business airport precinct came after a competitive process won by Charter Hall. Businesses will now be formally invited to join the 24/7 greenfield site, which also serves the fast growing region around the airport.

The airport has set up a 50/50 joint venture partnership with Charter Hall, to deliver the first stage of the precinct.

WSI chief executive Simon Hickey said stage one of the precinct’s development is expected to generate 400 jobs during construction, with another 2000 permanent jobs anticipated once it is fully occupied and operational.

“Western Sydney International Airport is the engine room for growth and development across the region that’s attracting billions of dollars of investment and generating thousands of training and job opportunities,” he said.

“This is an exciting time for all kinds of businesses to join our new business precinct that’s geared to grow and evolve over time as the airport builds to ultimately become Sydney’s biggest international gateway.”

Mr Hickey said the precinct will initially serve thousands of workers that are building the airport and its extensive infrastructure. The precinct will later adapt to meet the evolving needs of airport customers.

The 20ha mixed-use development will include up to 40,000sq m of warehouse space, offices and a 150-room hotel. It will also have convenience retail, including food and beverage outlets, and conference centres.

Charter Hall industrial and logistics chief executive Richard Stacker said the company had expertise in developing, owning and managing top facilities that attract strong tenants.

“We will leverage our cross-sector experience, extensive tenant customer relationships, emphasis on sustainable development and operations and a shared customer focus to deliver a world-class precinct that sets the benchmark for the rest of this transformative project,” he said.