Stockland flags industrial and North Sydney mixed-use project

Stockland flags industrial and North Sydney mixed-use project

13 July 2018

Diversified property group Stockland has signalled it will focus on growing its logistics and business park empire as it seeks to benefit from its substantial landholdings in growth corridors nationally, reports The Australian.

Stockland already boasts high visibility residential land and it can now add its logistics pipeline, with the group aiming to get that to 20 per cent of its holdings via undertaking projects worth $600m.

Mr Steinert said this was a combination of land zoned for logistics and business use now held in its residential business and also brownfields sites that were being overhauled.

“There is a lot of demand for last-mile logistics,” he said, noting the rise of e-commerce was also driving demand for mixed-use space, as well as assets like storage and light manufacturing.

“Growing urbanisation is creating a lot of these demands.”

Mr Steinert said the ambition was to make use of the natural synergies in the business rather than selling off slices of larger ­estates to smaller developers. It is also seeking to serve many of the retailers that occupy its shopping centres.

“We’re just taking advantage of the natural logic,” he said.

In addition to the growth of online sales, he said the group was also seeking to capitalise on ­demand for flexible working, which is seeing employees wanting to work closer to home.

Developing logistics and commercial assets may also provide Stockland with options in future.

“Longer term a lot of these assets will be able to be developed out for mixed-use projects,” he said.

Stockland has identified a number of existing communities that would suit logistics and business parks.

Stockland is also working up plans for a major mixed-use project in North Sydney to capitalise on the CBD’s resurgence.

The group has submitted plans that call for the redevelopment of its A-grade office tower at 601 Pacific Highway.

The tower is just 200 metres east of St Leonards railway station and serves as IBM’s Australian head office.

Stockland chief executive Mark Steinert said “You’re seeing a lot of infrastructure being delivered on Sydney’s lower north shore.”

The group is targeting sites that can capitalise on an emerging “arc of activity”, and it could undertake projects that include commercial, residential and education tenants.

Stockland’s concept for the site includes a seven-storey ­podium comprised of ground floor retail tenancies, three levels of office space and two levels of childcare or early learning space. These would be topped by two parallel towers accommodating a shorter 38-storey structure comprised almost entirely of units.

Stockland’s holding is one of the largest in single ownership in the area, and it sits near both St Leonards station and the metro station being built at Crows Nest.