A modern logistics facility in Adelaide’s outer north has sold for $12.125 million following a highly competitive Expressions of Interest campaign that attracted strong investor interest.
The property at 75 Kaurna Avenue in Edinburgh, which comprises 6,767sq m of gross lettable area on a 15,734sq m site, is located opposite the Coles Distribution Centre and surrounded by major occupiers including DHL and PepsiCo within Edinburgh Park, one of South Australia’s fastest-growing industrial estates.
Purpose-built in 2021 for M3 Logistics Pty Ltd, an Australian-owned third-party logistics provider with national distribution capability, the asset benefits from having a national tenant in place, fixed annual rental growth, significant rental upside and surplus land for expansion.
The property was purchased by a private investor in a deal negotiated by Bennett Lane’s Matthew Lane and Guy Bennett, with Knight Frank’s Max Frohlich and Ryan Mills, on behalf of the vendor, MA Financial Group.
Mr Lane said investor conviction was being supported by the long-term economic drivers underpinning Adelaide’s northern corridor.
“Edinburgh Park has established itself as one of South Australia’s premier logistics and industrial locations, benefiting from excellent access to the Northern Connector, major freight routes and a growing defence and advanced manufacturing ecosystem,” he said.
“The precinct continues to attract significant occupier demand from logistics, defence and manufacturing users, providing investors with confidence in long-term rental growth and asset performance.
“The strength of the campaign reinforces the view that high-quality industrial assets remain among the most sought-after investment opportunities in the South Australian market.”
The precinct is home to a growing list of major occupiers including Coles, DHL, PepsiCo, BAE Systems, Airbus, Inghams and Drakes, while its proximity to RAAF Base Edinburgh continues to support demand from defence-related businesses and supply chain operators.
Mr Frohlich said the campaign generated 105 enquiries, with over $100 million in unsatisfied underbidder capital, highlighting the depth of investor demand for quality industrial assets in Adelaide’s tightly held logistics market.
“The result reflects continued confidence in Adelaide’s industrial sector and the growing appeal of Edinburgh Park as a major logistics and industrial destination,” he said.
“The depth of competition demonstrated the appetite from both private and institutional investors for modern logistics facilities offering secure income, reversionary upside and exposure to Adelaide’s exceptionally strong industrial market fundamentals.
“Investors continue to be attracted to Adelaide’s low vacancy environment, strong rental growth trajectory and relative value compared with the eastern seaboard markets.”
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