Stockland's role in future stages of the West Dapto urban release area is in doubt after the company decided to sell its 113-hectare landholding at Cleveland.
The West Dapto release area aims to one day provide 17,000 homes and 183 hectares of employment land.
Stockland's Brooks Reach project was the first subdivision approved for the release area, however Stockland's nearby Cleveland holding has been identified as one of 13 projects throughout Australia the company plans to offload.
In May last year, the Wollongong Local Environmental Plan (West Dapto) was approved, allowing for the development of about 6600 dwellings in stages 1 and 2 of the release area. The proposed stages 3 and 4 were deferred pending further review.
Despite adjoining the Brooks Reach project, Stockland's Cleveland holding falls into stage 3 of the release area which remains zoned as rural land.
"We've undertaken a detailed review of our residential portfolio and we have identified 13 projects throughout Australia where either the whole or part of the project will be offered for wholesale sale," Stockland regional manager Stephen Barlow said yesterday.
"Our landholding at Cleveland, West Dapto, is not yet zoned [for residential], so it is not an active development project.
"Prior to rezoning and well before this land can be released for development, it requires an agreement and commitment from local and state government to undertake local infrastructure works."
Mr Barlow said Brooks Reach was "a very different proposition" because the majority of land had already been rezoned for residential use.