URGENT UPDATE: Stockland has just announced a groundbreaking plan to develop a $3.5 billion multistorey logistics hub on the site of the Kogarah Golf Club in Sydney’s southern suburbs. This ambitious project aims to streamline the transport of goods to and from Sydney Airport and the nearby Port Botany, marking a significant shift in the region’s economic landscape.
Construction is set to begin in 2027, as Stockland enters a joint venture with John Boyd Properties, the current owner of the 18.3-hectare site. The facility will span an impressive 340,000 square metres and will consist of multiple buildings designed to support the growing demands of logistics and distribution.
Stockland CEO Tarun Gupta stated that while the exact construction costs remain undisclosed, the project will be executed in stages, requiring billions in capital. “We are confident this multibillion-dollar project will attract strong institutional interest,” Gupta told The Australian Financial Review.
Investors are closely monitoring how Stockland will fund this undertaking. The company reported a gearing level of 27.9% in February, raising questions about their financial strategy. UBS analyst Tom Bodor highlighted the need for clarity on whether Stockland will rely on third-party funding or utilize its own resources.
The Commonwealth Bank of Australia is positioned as the sole underwriter, demonstrating its commitment to supporting Stockland’s vision. “This multi-tranche loan facility reflects our ability to provide tailored solutions that align with client needs,” said George Vallas, head of real estate at the CBA.
The new logistics hub will connect to major arterial roads, including the M1, M5, M8, and the future M6 motorway, enhancing its accessibility. Importantly, the development will occupy only a quarter of the golf course site, with the local Bayside Council planning to convert the remainder into Pemulwuy Park, a new 14-hectare public space that will reopen access to the Cooks River.
“This proposal represents a fresh chapter for Bayside,” stated Bayside Council Mayor Edward McDougall. “It brings significant job creation and economic opportunity to our city while unlocking the potential of a long-stalled site.”
Once operational, the logistics facility is expected to generate approximately 4,500 direct and indirect jobs, reinforcing the area’s economic vitality. Gupta emphasized the critical balance between creating jobs and addressing Sydney’s housing needs, stating, “We need housing, but we also need jobs for people to pay for the housing.”
The closure of the Kogarah Golf Club in March 2023 paved the way for this transformative project, which members of the 97-year-old club are optimistic about, as they relocated to the newly named Oak Point Golf Club.
This development aligns with Sydney’s urgent need for urban infill sites amid rising demand for logistics and distribution infrastructure. John Boyd Properties director John Boyd shared that this project aims to set a new benchmark for logistics assets, capitalizing on Sydney’s increasing trade volumes and e-commerce activity.
Stockland’s shares responded positively to the announcement, trading up 3.5 cents to $5.44 as of Monday. With full-year results expected on 20 August, the company is poised for a pivotal moment in its strategic trajectory.
Stay tuned for more updates on this developing story as Stockland and its partners move forward with this major investment in Sydney’s future.
