Steel manufacturing giant BlueScope is set to gain a significant financial windfall, securing $76 million from the sale of a large parcel of land it owns in West Dapto. The buyer is one of Australia's largest home builders, although the company's name has not been publicly disclosed.
A Major Residential Development for the Illawarra
The transaction involves 33 hectares of residentially zoned land, which is slated to be transformed into a substantial new housing estate. Plans indicate the site will accommodate more than 350 residential lots, providing a welcome boost to local housing supply in the Illawarra region.
Beyond the immediate cash injection from the land sale, BlueScope stands to benefit further through its core business. The company confirmed that the new homes constructed on the estate will feature its signature building products, including Colorbond roofing and fencing. This creates a valuable ongoing revenue stream for the steelmaker.
Timeline and Financial Impact
The sale was initially scheduled for the first half of the next financial year, with completion now anticipated in 2027. Despite the sizable deal, BlueScope has stated that it does not expect the transaction to alter its previously forecast profit range for the first half of the 2026 financial year.
This stability is attributed to what the company describes as "the sustained strength of operating performance across the business" during the final months of the 2025 calendar year.
Unlocking Value in Surplus Land Portfolio
BlueScope's Chief Executive, Mark Vassella, highlighted the strategic importance of the sale. He noted that it not only delivers a cash profit but also establishes a clear benchmark for the value embedded in the company's extensive portfolio of non-operational land.
"This sale provides a clear base line for the significant value in our non-operational land portfolio of over 1200 hectares," Mr Vassella said. "It demonstrates our ability to unlock it in a way that has the greatest benefit to BlueScope."
He also expressed satisfaction in contributing to residential land supply in the Illawarra through the partnership with a major national builder.
The West Dapto sale follows closely on the heels of another significant land move by the company. Earlier in December, 200 hectares of non-operational land adjacent to the Port Kembla steelworks was rezoned. The new Special Purpose (SP4) zoning expands permissible uses beyond heavy industry, allowing for a broad range of commercial and industrial developments and creating a faster pathway for future project approvals.
