BlueScope accelerates land deals amid SGH, Steel Dynamics takeover
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The news: BlueScope Steel said it is accelerating its program to deliver value from its industrial land portfolio through a mix of leases, partnerships and outright sales, with a number of initiatives now underway.
The numbers: The 1,200-hectare portfolio comprises surplus land in industrial regions with access to critical infrastructure such as ports, transport and energy. Over 60% of the portfolio is currently zoned to enable development, with work underway to unlock further developable area through master planning activities.
Initiatives underway include agreeing a 10-year lease for a 10-hectare hardstand car storage facility in West Dapto, NSW, with automotive logistics company Prixcar. The agreement includes development of the facility, expecting to deliver $40 million in added value by 2029.
BlueScope has also begun an expression of interest process for a 65-hectare logistics hub near its Western Port facility in Victoria. The company is expecting to attract interest from logistics and industrial developers, and deliver value in the first half of FY27.
The context: The value of the land portfolio has been a major sticking point between BlueScope and its joint suitors SGH and Steel Dynamics.
In response to SGH and Steel Dynamics’ initial $13 billion offer, BlueScope released a breakdown of its global assets which tallied to a combined $16 billion.
The figure included a $2.8 billion price tag tied to “implied potential land value” to be “realised over time” — to which the suitors claimed was unfairly extrapolated from its recent $76 million sale of residential land in West Dapto.
What they said: “We made clear our intention to act and we’re delivering,” said new managing director and CEO Tania Archibald.
“Our current initiatives clearly demonstrate our ability to accelerate value delivery from our outstanding land portfolio.
“The outcomes we’re achieving confirm there is very substantial value in the surplus land portfolio. These are unique assets with scale, zoning and infrastructure access in high demand locations.”
The source: ASX
