A property in Adelaide’s fastest growing industrial precinct has sold for $18.1 million in a deal demonstrating national demand for core-plus industrial investments in the city.
The property, at 65-69 West Avenue and 12 Kaurna Avenue in Edinburgh, comprises two contiguous land parcels totalling 43,670sq m improved with a refurbished office/warehouse of circa 12,325sq m securely leased to K&B Frame and Truss, a wholly owned subsidiary of Metcash (ASX: MTS), a publicly-listed Top 200 company.
The site is strategically situated in the Edinburgh Parks industrial estate, around 30 kilometres north of Adelaide, close to major road, rail, air and sea freight infrastructure including the Northern Expressway, Northern Connector and SCT’s Pennfield Intermodal, reinforcing its appeal to logistics, manufacturing and trade‑based occupiers.
The asset has been purchased by experienced Sydney based fund manager, Corval, in an off-market deal negotiated by Knight Frank agents, Max Frohlich and Ryan Mills, on behalf of the vendor, a local private family.
Mr Frohlich said the sale highlighted the strength of investor demand for well-located, income-secure industrial assets with strong fundamentals including the purchase price at a significant discount to current replacement cost with high underlying land value and low site coverage of 27% providing room for further expansion, and a strong likelihood of positive rental reversionary upside at lease renewal.
“This transaction reflects the continued depth of purchaser demand for high‑quality industrial assets in South Australia offering secure income and several value-enhancement strategies,” Mr Frohlich said.
“The property has undergone a circa $3 million refurbishment program, and offers functional ESFR sprinklered warehouse accommodation with a minimum internal clearance of approximately 7.0 metres, a modern high quality office component in addition to significant hardstand/heavy‑vehicle curtilage, and dual street frontages to both West Avenue and Kaurna Avenue.”
Mr Frohlich added that constrained supply of institutional‑grade assets in Edinburgh Parks had supported both rental and capital growth.
“Limited availability of quality stock in this location continues to place upward pressure on rents and land values, reinforcing the long‑term investment thesis for this precinct.”
Mr Mills said: “Adelaide’s industrial market remains one of the strongest in the country from a fundamentals perspective.
“Adelaide continues to record some of the lowest industrial vacancy rates nationally, with the Outer North precinct delivering the strongest rental growth of any industrial market in the city.
“Beyond connectivity, occupier demand is being underpinned by proximity to labour and long‑term industrial investment, particularly defence‑related expenditure, with more than $100 billion in projects either underway or planned across Adelaide’s northern corridor.”
Sanjeev Sahota, Corval Fund Manager, said the acquisition further strengthens the Corval Property Fund’s growing portfolio. The Corval Property Fund (CPF) provides investors with exposure to a diversified portfolio of high-quality Australian real estate and is accessible via a range of investment and superannuation platforms.
“The team continues to demonstrate a strong capability in sourcing and executing attractive real estate opportunities across multiple sectors. This transaction, in particular, highlights the strength of Corval’s established relationships, having been secured through an off-market process,” said Mr Sahota.
“The industrial sector has been a key area of focus for CPF, now representing approximately 50% of the Fund’s portfolio. We have a preference for smaller, infill assets that offer clear value-add opportunities. The sector continues to benefit from structural tailwinds, including increased onshoring since COVID, constrained new supply, and elevated replacement costs. These fundamentals remain firmly in place and continue to support future growth. This most recent acquisition asset delivers robust near-term income, with additional upside potential at lease expiry.”
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