A high-quality and well-located industrial facility in Adelaide’s inner north has sold for $50.5 million in an off-market deal.
The 9.413-hectare site at 8-16 Vater Street in Dry Creek, 16 kilometres north of the Adelaide CBD, was purchased by Harmony Property Investments in a deal negotiated by Max Frohlich and Ryan Mills of Knight Frank.
The property is 100% leased with existing improvements of 18,109 square metres, comprising the main warehouse of 15,813 square metres, in addition to a workshop of 2,296 square metres and licence agreement over a 14,588 square metres hardstand.
The improvements provide site coverage of approximately 20%, with significant hardstand and further expansion potential.
Mr Frohlich said the land rich asset was situated in a strategic location in Adelaide with efficient access to major transport links, and offered secure income as well as future development upside – all of which were factors that appealed to the buyer.
“It is a fully leased asset that offers the potential for further development in time to increase the income, as well as maximise utilisation of the site to drive capital growth potential of the property,” he said.
“We continue to experience buyers gravitate towards core-plus and value-add strategies such as this, where the increased cost of capital can be offset with enhanced returns from active management initiatives.”
Mr Mills said: “The location is also highly sought after by industrial users, with the asset having excellent connectivity to key transport routes including the Northern Connector, Port Wakefield Road, Port River Expressway, Salisbury Highway and Main North Road.
“While the property has low site coverage, the main warehouse in particular has been built to a high specification and adds significant value to the site.
“There is a shortage of industrial land, so sites of this size that offer the potential for further development are highly sought after.”
This sale brings Adelaide’s sale volume of industrial transactions above $5 million for FY25 to date to $214 million, with Knight Frank having proudly transacted 68% (by volume) of the deals in the state.
Tom Isaksson of Harmony Property Investments said it focused on acquiring high-quality, land rich institutional-grade assets that stand to benefit from structural tailwinds, supporting medium to long term capital growth prospects.
“HPI intends on executing a proactive asset management strategy for this property to preserve and enhance the current income streams while simultaneous exploring ways to increase the income on the asset while maximising overall property value,” he said.
“With the site being underutilised, we will investigate value-add opportunities to maximise the medium to long term capital value potential of the asset.”
The suburb of Dry Creek sits to the west of Mawson Lakes which is one of South Australia’s three dedicated defence industry precincts, home to major occupiers such as Lockheed Martin, Saab, Raytheon and Codan. Dry Creek also adjoins other well regarded industrial suburbs including Gillman, Wingfield, Gepps Cross and Cavan.
The precinct is home to well-regarded industrial occupiers including Amazon, Lineage, and Collins Transport.
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