BlueScope Steel (ASX:BSL) announced the sale of 33 hectares of residentially zoned land in West Dapto to one of Australia's largest home builders, with contracts now exchanged and completion expected in the second half of FY26.
The transaction, valued at $76 million, represents a strong outcome of over $200 per square metre, above recent comparable sales.
The company does not anticipate a material impact on its previously affirmed H1 FY26 guidance, citing continued robust operating performance through the end of 2025.
The West Dapto development will deliver more than 350 residential lots, supporting housing supply in the Illawarra region.
BlueScope will provide its premium products, including COLORBOND steel roofing, fencing, and garage doors, as well as TRUECORE steel framing.
Mark Vassella, Managing Director and CEO of BlueScope, said the sale "provides a clear baseline for the significant value in our non-operational land portfolio of over 1,200 hectares and demonstrates our ability to unlock it in a way that benefits BlueScope."
He added, "We're pleased to contribute to the supply of residential land in the Illawarra alongside one of Australia's largest home builders."
In a related milestone, on Dec. 11, NSW Planning Minister Paul Scully announced the rezoning of 200 hectares of non-operational land near the Port Kembla Steelworks to Special Purpose.
The rezoning expands permissible uses beyond heavy industry, allowing for a broad range of commercial and industrial developments and streamlining approval pathways.