Project Overview
Client
Major listed corporate – national airline and aviation services operator
Property Type
Aircraft Heavy Maintenance Facility
Reason for Service
Market valuation and scenario analysis to support financial reporting, strategic planning, and potential transaction negotiations
Preston Rowe Paterson was appointed to conduct a comprehensive multi scenario valuation of Qantas’ strategically critical Sydney Airport adjacent freehold landholding to support financial reporting, negotiations with Sydney Airport, and long term redevelopment strategy.
The engagement required assessment of market value across a wide range of scenarios, including whole-of-site value, partial site configurations, retained operational buildings, infrastructure uplift, rezoning potential, and acquisition by Sydney Airport as an adjoining owner. The advice was relied upon for financial reporting and high-level strategic negotiations.
Summary of Scope of Services
Our engagement involved:
- Establishment of underlying unencumbered land value on a highest and best use basis
- Valuation of multiple development, disposal, and retention scenarios, including co-location and infrastructure uplift
- Analysis of IN1 General Industrial and B5 Business Development land markets
- Assessment of value with and without airport-adjoining owner premium
- Scenario modelling to directly support corporate strategy and negotiations
Asset Overview:
The Qantas Sydney Freehold comprises approximately 16.4 hectares across 17 contiguous allotments bounded by King Street, Kent Road and Coward Street, immediately adjoining Sydney Airport. The land is predominantly zoned IN1 General Industrial (FSR 1.5:1) with portions zoned B5 Business Development (FSR 3:1), allowing significant redevelopment flexibility.
Existing improvements include operational aviation-related facilities, logistics buildings, catering infrastructure and extensive hardstand and parking areas. For valuation purposes, the highest and best use primarily assumed site clearance, except where specific operational buildings were retained under defined scenarios. The asset represents one of the most strategically significant private landholdings within the Sydney Airport precinct.
Valuation Methodology
A rigorous direct comparison framework was adopted, analysing market evidence on a gross floor area basis for B5 and IN1 zoned land.
Scenario-based modelling incorporated adjustments for site scale, configuration, infrastructure uplift, and purchaser premium, with separate treatment of retained operational improvements where applicable.
This engagement demonstrates Preston Rowe Paterson’s expertise in:
- Large scale strategic landholdings;
- Airport precinct and infrastructure adjacent assets;
- Complex multi scenario valuation analysis; and
- Valuation led advisory supporting high value negotiations.
Outcome
The valuation confirmed that outcomes were highly sensitive to site configuration, planning controls, infrastructure upgrades and purchaser type.
Scenario modelling identified material uplift where Sydney Airport was the acquiring party, reflecting strategic control and adjoining ownership benefits.
The advice provided Qantas with a clear evidentiary framework to support financial reporting, strategic planning and negotiation of future development, retention and transaction outcomes.
Approximately
270,000m²
potential developable gross floor area
A total of
16.4
site area
A total of
17
contiguous allotments
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