Adelaide industrial facility opposite Bunnings Edwardstown snapped up in just four days1 November 2022
An industrial facility located across the road from the recently-built Bunnings in Edwardstown has been snapped up after just four days on the market.
The relatively new 415sq m office/warehouse facility at 5 Woodlands Terrace has 10 car parks and is part of a group of three community-titled buildings.
It is fully leased to perforated metal sheet manufacturer Rapid Perforating with this tenant occupying the facility since construction was completed in 2020.
The property was purchased by a private buyer for $1.3 million following a private treaty campaign run by David Ludlow and Marco Onorato of Knight Frank.
Mr Ludlow said the facility was snapped up in just four days, demonstrating the ongoing strong demand for quality industrial facilities in Adelaide.
“The sale price equated to a 4.5 per cent return, highlighting that industrial yields are holding firm, particularly in the sub $5 million price bracket,” he said.
“We are seeing strong demand from investors for quality opportunities, which is why this property sold in such a short time frame.”
Mr Onorato said the fact that this facility was fully leased to a quality tenant was a huge drawcard for investors, as was the location.
“The property is just eight kilometres from the Adelaide CBD and 50 metres from South Road, and surrounded by plenty of amenity including the Bunnings across the road, as well as Castle Plaza.
“It also has excellent security including a secure sliding gate and a solar system.”
Knight Frank’s latest Australian Industrial Review found investor confidence in Adelaide’s industrial and logistics sector was still high with record low vacancy rates resulting in a surge of both land and rental values.
Yields were also found to have held firm in Q2 despite moves in other cities, with both blended prime and secondary yields remaining relatively stable to sit at 5.55 per cent and 6.65 per cent respectively.
The report found the combination of high rental rates and relatively low land values in Adelaide compared to the eastern states has highlighted South Australia as a prime location for all investor groups.
Adelaide’s industrial market has a positive outlook, with an expected strong performance compared to other cities.