KNIGHT FRANK INFORMATION MEMORANDUM
PORT KEMBLA IN CONTEXT
become Australia’s largest duel-fuel (gas and green Hydrogen) power station. The Power Station is likely to be operational by 2025. BlueScope Major Projects BlueScope has >$2B of major projects in the pipeline. Five major manufacturing projects are either approved or approaching final investment decision (FID), including: • $1B+ | 6BF Reline • $414M | Metal Coating Line 7 (MCL7) | Approved • $400M+ | Advanced Steel Manufacturing Precinct (ASMaP) • $150M | Berth Upgrades (Project CLIP) | Approved Phase 1 Berth Repairs • $70M | Pipe & Tube Mill | Approved Port Kembla Master Plan • 18-month program to create a ‘vision’ for the re- imagination and transformation of land surplus to steel making needs • Appointed world-leading architects and urban designers, Bjarke Ingels Group • Should unlock a wide range of new uses and enable significant long-term economic and social value for the whole Illawarra
INDUSTRIAL INVESTOR DEMAND
Investor demand for industrial assets across the Wollongong region remains strong on the back of solid foundations and positive outlook for the sector. With the high yield metrics on offer in comparison to Sydney has made Wollongong an attractive investment option specifically for owner occupiers and Self Managed Super Funds (SMSF). Due to the dynamic of the investor market and the select number of assets, the market remains tightly held and thinly traded. The region has seen strong demand and an uplift in Industrial rents across the market have been achieving up to $265 per sqm for industrial rents whilst owner occupiers have seen rates on industrial property achieve up to $5,500 per sqm on a vacant possession basis for new Industrial developments.
NEW INFRASTRUCTURE AND PROJECTS
Port Kembla Gas Terminal Australian Industrial Energy (AIE) is developing NSW’s first energy import terminal at Port Kembla near Wollongong. With NSW currently importing more than 95% of the natural gas it uses from other States, the Port Kembla Energy Terminal will deliver a new source of energy to the market to meet predicted supply shortfalls and could supply more than 75% of NSW’s gas needs. It is estimated the Project will create around 130 – 150 jobs during construction and between 40 – 50 ongoing roles at a cost of around $250 million. Port Kembla Power Station The NSW Government has granted critical state significant infrastructure (CSSI) status for the $1.3bn Port Kembla Power Station. The Power Station will deliver a new source of large-scale dis-patchable, safe, reliable and lower emission electricity to support the growth in renewable energy and would
Source: Knight Frank Wollongong Insight Report 2023 &
BlueScope Major Projects Update i3net Town Hall 2023
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