Major Port Adelaide industrial estate expected to fetch $225 million
A “truly rare” opportunity to own a major distribution centre at Port Adelaide has come to market.
The Port Adelaide Distribution Centre has been listed for sale, with brokers Colliers noting the “once-in-a-generation” opportunity to own a major estate at the heart of Adelaide’s growing industrial precinct.
The estate has 17 tenants including Visy Logistics, Ameropa Australia, Toll Transport and Spendless Shoes, and sits on 319,000 sqm.
It’s situated in the Gillman industrial market, and brokers said the estate offered would-be buyers strong passing income, multiple exit strategies and confidence as the centre is supported by major infrastructure investment and urban renewal projects.
The Colliers team – Gavin Bishop, Sean Thomson, Tom Barret and Paul Tierney – in conjunction with a CBRE team are marketing the property with price expectations of about $225 million.
“This truly rare industrial listing provides incredible scale and the ability for the incoming purchaser to capitalise on significant occupier demand and rental growth within Adelaide’s inner north market, setting this up as one of the best investment opportunities to hit the market this year,” Bishop said.
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“The strategically short WALE (weighted average lease expiry) of three years by income allows the possibility of value-add opportunities in the short-term, providing the incoming purchaser with flexibility, but also the ability to build immediate scale with approximately $12.8 million in base passing income,” added Thomson.
Two new warehouses recently opened at the PADC, featuring state-of-the-art amenities.
Developer and landlord Quintessential – which acquired the PADC for $80 million in 2019 – spent years upgrading the warehouses, which combine logistics and office functions.
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At the time, Quintessential said net rents had more than doubled from $55 per square metre to as much as $153 per square metre in the newly completed warehouses.
Deputy Premier Susan Close and Quintessential CEO Richard Lucas cut the ribbon at the new PADC warehouses. Photo: David Simmons / InDaily
Colliers said the entire estate benefitted from high historical occupancy and low market vacancy, with the site “perfectly positioned” for refurbishment, reconfiguration or repositioning.
Further, the site is expected to be supported by the $368 billion AUKUS defence project at the nearby Osborne Naval Shipyards.
“South Australia’s economy has demonstrated remarkable resilience, with steady long-term growth averaging 2.5 per cent over the past 30 years,” CBRE’s Chris O’Brien said.
“This economic stability is further supported by the state’s favourable investment environment, which includes the absence of land tax, making real estate investments particularly attractive.”
CBRE’s Andrew Bell said Port Adelaide’s “strategic location and exceptional infrastructure is set to benefit immensely” from economic and infrastructure developments.
“The region’s transformation promises substantial returns for investors, making it a prime opportunity for those looking to capitalise on South Australia’s growth and prosperity.”
