SYDNEY: Australian pension fund UniSuper said on Wednesday it had bought an undeveloped site next to Sydney’s planned new international airport to develop a logistic hub worth around A$3.9 billion (US$2.5 billion), its second major property deal in three weeks.

The purchase, a 50/50 joint venture with unlisted property fund manager ISPT, marks the latest acquisition for UniSuper, which has roughly A$8 billion invested in unlisted real estate.

The parties acquired the 280-hectare (692-acre) site adjacent to the entrance to the new Western Sydney International Airport, which is expected to begin operations in 2026. Terms of the transaction were not disclosed.

UniSuper, which manages more than A$130 billion, and ISPT intend to develop the site into a 400,000 sq m (4.3 million sq ft) manufacturing, warehouse and logistics hub over the next seven years, the fund said in a statement.

The parties raised the possibility of doubling the hub’s size in the future subject to planning approvals and demand.

While office tower owners have seen property values plummet by double digits due to remote working and higher vacancies, industrial real estate has avoided this downturn on the back of strong demand for assets like data centres and e-commerce logistics hubs.