Former DHL facility to be transformed into logistics estate

From left to right: Andrew Wilson, McGees Partner; Domenic Merlino – Owner/Developer – Merlino; Development Group Ryan Bilsborough – Project Manager – Merlino Development Group Marco Onorato; and McGees Senior Executive

102-110 Glenroy Street, Pennington

A 21,000sqm former DHL facility in Pennington is being refurbished and expanded to become a new industrial and logistics estate, after being acquired by Merlino Development Group in a significant $25.5 million transaction.

McGees Property’s Andrew Wilson negotiated the off-market sale of the highly coveted site at 102-110 Glenroy Street, Pennington, in Adelaide’s north, marking one Adelaide’s biggest industrial transactions in 2024 to date.

“This transaction signifies the continued strength and confidence in Adelaide’s industrial market from developers, particularly those looking to capitalise on existing quality improvements,” Wilson said.

Transacting with short-term leases remaining to DHL, Pickles Auctions and Macro Meats, the site is now entering an exciting new chapter with a full-scale overhaul planned. The development will feature brand-new, state-of-the-art office/warehouses, starting from 2,100sqm up to 3,200sqm. Two pre-cast structures will be constructed on the site in addition to the redevelopment of the existing facility, and a smaller warehouse development at the southern end of the site is in planning.

The facilities will include high-clearance warehousing equipped with gantry cranes, secure yards, and full drive-around access, making it ideal for a range of industrial users.

Andrew Wilson and Marco Onorato from McGees Property are leading the campaign, in partnership with Anthony De Palma and Jamie Forwood from Leedwell.

“This project is poised to become a benchmark for industrial developments in the region,” Wilson said.

“We’ve already received a wave of interest, with logistics, defence and engineering groups notably prominent in the enquiry. There are several proposals already under consideration,” Wilson said.

“There’s clearly still really strong demand from groups to be centrally located between the Port, Airport and CBD.

“Well-located and well-connected sites such as this are become rarer and rarer and we expect to see ongoing demand momentum at this site.”

The site enjoys close proximity to major transport routes including the Port River Expressway, Northern Connector and Outer Harbor and also offers direct access off Grand Junction Road.

“We continue to see a high number of tenants seek high-grade office/warehouse spaces at rates lower than the cost of new builds,” Wilson added.

The sale of the Pennington property continues McGees’ strong performance in the industrial market, and follows several other notable transactions that include a $10.6 million sale at Camden Park, as well as $7.5 million and $10 million deals at Eastern Parade and Santo Parade in Port Adelaide.