Stockland has entered into a put and call option deal to secure a four-hectare site owned by Johnson & Johnson in Macquarie Park, expanding its own holdings in the north-west Sydney precinct.
The ASX-listed developer’s latest deal involves the acquisition of 1-5 Khartoum Rd, a site adjacent to Stockland’s M_Park commercial office project, located roughly 13 kilometres from Sydney’s CBD.
In an announcement to the ASX, Stockland Group executive Louise Mason said the move creates a “potential consolidated development opportunity in excess of $1.5 billion”.
“The Macquarie Park business precinct is already a powerhouse of employment and economic growth, underpinned by pharmaceuticals, health, technology, government and education,” Mason said.
“It is predicted to become New South Wales’ second-largest economy in the coming years.”
Johnson & Johnson Family of Companies will remain within the Macquarie Park precinct, and are working towards an agreement with Stockland to design a new 10,000sq m head office.
Mason said the design for the new J&J head office, which is stage three of the precinct, has started and expects that a development application would be lodged later this year.
Stockland gained development approval for the first stage of the M_Park precinct, a $123 million 18,000sq m office, co-working and retail building in December 2019.
When complete, Stockland’s wider development, located between 17 Khartoum Road and 33 Talavera Road, will comprise 55,000sq m of new real estate in a campus-style project of buildings.
In May, the ASX-listed company withdrew its full-year guidance due to uncertainty surrounding the pandemic, which had seen retail spending drop during the second quarter.
Earlier this year, Frasers Property and Winten Property Group won approval for its own Macquarie Park project, the $750 million Macquarie Exchange.
To be located at the entrance to Macquarie Park’s new Sydney Metro station, Macquarie Exchange will convert the 15,620sq m site into four buildings ranging in heights from nine to 17 storeys, comprising 83,368sq m of commercial space.