There is continued strong demand for leased industrial investments with value-add potential in the high-performing South Australian market, as demonstrated by the $25 million off-market sale of a Port Adelaide warehouse facility.
McGees Property’s Andrew Wilson and Daniel Scinto negotiated the sale of 13-43 Webb Street, Port Adelaide on behalf of off shore institutional investor Silverfin Capital.
The property comprises 15,520 sqm of offices and warehouse, including gantry cranes, on 44,080sqm of land.
It is leased to long-standing national tenant, major steel processor and distributor InfraBuild until 2030. The sale price reflected a yield of 5.81%.
“The purchaser is a local private investor who will hold the property long-term as a leased investment, and will explore future value-add opportunities in line with tenant and market requirements,” Wilson said.
“This deal demonstrates the strength of the South Australian industrial sector and the ongoing demand for leased investments with value-add potential. We’re seeing an undersupply of quality leased stock driving competition,” he said.
“This property offered the rare opportunity to acquire a substantial industrial asset with a secure income stream backed by an established tenant, in a well-connected prime industrial precinct.
“Sites that are land-rich with existing improvements that can be repositioned, upgraded, or redeveloped to maximise value over time continue to be particularly sought-after.”
Scinto said there is strong leasing demand in core precincts, offering excellent tenancy and rental prospects over the long-term.
“Tenants are focusing on well-located facilities in established industrial hubs that offer good access, quality warehousing, and flexibility.”
The highly accessible property is located moments from the intersection with Old Port Road, as well as Grand Junction Road and Port Road.
Sinto added, “This was an incredibly rare opportunity to acquire more than 4.4 hectares of prime industrial land in a key logistical location, when Adelaide is witnessing the most significant industrial land shortage in Australia.”
For more information on this transaction, contact:
Andrew Wilson on awilson@adl.mcgees.com.au or 0450 965 633
Daniel Scinto on dscinto@adl.mcgees.com.au or 0415 584 818