Data CentresPatrick LauWed 07 Oct 26
Homes or Data Centre Pivots for $50m Newcastle Industrial Site
An industrially-zoned parcel spanning 12.2ha is under campaign at Wallsend in Newcastle, but agents on the sale are positioning it as ripe for redevelopment and repositioning.
The Urban Developer understands that a price in the quantum of $50 million is expected for the site at 80 Abbott Street.
With frontage to the A15, residential surroundings, and a 135kV substation, the plot is being marketed as suitable for industrial uplift, residential rezoning or a data centre.
The expression of interest campaign led by Knight Frank Newcastle and Cushman & Wakefield Sydney is pointing to a staggered lease profile, with tenant roll-off commencing in September 2027 and full vacancy by June 2028.
Leaseback arrangements and telecommunications licenses underpin ongoing income.
The site has multiple access points including the major Newcastle Road A15, and extensive hardstand, but just 16,451sq m of covered improvements across its 122,350sq m area.
Approvals are in place for further industrial uplift, and the site is just 400m from the Newcastle Inner City Bypass, which is set to complete the final leg before the end of 2026.
However, the surrounding neighbourhood is residential in character, with the Jesmond Central opposite the site on Mordue Parade. Although industrial zoning is in place, agents are suggesting that a residential pivot could be attractive to developers.
Industrial-to-residential redevelopments have become commonplace in the Steel City. In June, DOMA began planning for an 1100-home contribution to the waterfront Honeysuckle precinct, a former industrial zone undergoing a decades-long renewal.
However, with logistics infrastructure improvements under way across the region, including at the Port of Newcastle, industrial continues to play a role in the local economy.
Sentinel is progressing development on the Newcastle Port Logistics Hub with lot sizes from 2000 to 10,000sq m. And in April, the Hunter Central Logistics Estate was approved for a $262-million first stage, featuring just two sheds of 43,379sq m and 55,521sq m gross floor area.
